ENTREPRENUERSHIP DEVELOPMENT

MANUAL FOR TRAINERS/INSTRUCTORS

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MODULE NO. MODULE TITLE: UNIT A1.1

138-01-A Introduction to Entrepreneurship The Concepts of Entrepreneurship, SelfEmployment and Enterprise Concept of Entrepreneurship

UNIT 1.1 .1

Session Duration Session Rationale

:

60 minutes

For a long time, entrepreneurship has been recognized as an essential ingredient of economic development. The manner in which it has been exploited in the western societies has varied from time-to-time to suit the changing ethos of socio-economic reality. From early centuries (16th to 19th) the definition of entrepreneurship has changed from time-to-time. In France, the term entrepreneur was used in the early days for army leaders. Later, architects and builders of roads and bridges were called entrepreneurs. In the 19th it was applied to businessmen/trades who bought and sold goods at a profit. |It was in the 20th century that an entrepreneur was identified as the person who identifies and opportunity, takes risk, consolidates resources and sets up an enterprise. This session will explain the attitudes required and the functions carried out in relation to entrepreneurial activities.

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Session Learning Objectives
At the end of the session, trainees will be able to define the terms, entrepreneurship, intrapreneurship and entrepreneur

Learning Outcomes
On completion of this session, the trainees will be able to: Define the terms entrepreneurship, intrapreneurship entrepreneur Distinguish between entrepreneurship and entrepreneur

and

Learners Activities / Environment
Ensure that the learning activities for the trainee include explanations of entrepreneurship, intrapreneurship and entrepreneur.

Methodology: Lecture and Discussions Trainer’s Preparation
1. 2. Go through the Reference Paper (enclosed) and also refer Reading Paper HO 1.1 Make flipcharts or transparencies as enclosed

Session Delivery
1. Open the session with the following statement: “Today we will be learning about the concept of entrepreneurship • Ask participants what they understand by entrepreneurship. Intrapreneurship and entrepreneur • Elicit answers and put all the answers on the blackboard or on flipcharts.

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Trainer’s Tips
1. Consolidate all answers and take a small Lecture on the definition of entrepreneurship, entrepreneur and intrapreneurship. Go through the process of entrepreneurship, referring reference paper HO1.1 By referring to all the gathered answers, take a Lecture on the process of entrepreneurship using flipcharts. (use TransparencyTR1.1) Elicit answers to note the difference between entrepreneurship and intrapreneurship, from the participants, and put it on flipcharts. Explain to the participants with the help of flipchart/Transparency (TR1.2), that entrepreneurship is a chain of functions and decisions taken at different stages of enterprise building. Explain the different stages of enterprise building with the help of transparency TR1.3 or flipcharts. Summarize the learning.

2.

3.

4.

6. 9.

Reading Material
Entrepreneurship can be described as a creative and innovative response to the environment. Such responses can take place in any field – business, industry, agriculture, education, and the like. Doing new things or doing things that are already being done in new ways is therefore, a simple definition of entrepreneurship. Or you may emphasize that for our understanding, a person involved in a business activity where the person sells a product/service and makes profit is an entrepreneur. This may include manufacturing, trading, or service oriented business (i.e. laundry, restaurant, petrol pump, etc.). Whatever may be the activity, entrepreneurship has two distinct aspects – one is the entrepreneur herself and the other is the enterprise.

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Entrepreneur + Enterprise = Entrepreneurship Entrepreneurs by and large have been found to be people with a high drive and higher activity level, constantly struggling to achieve something which they could call as their own accomplishment. They like to be different from others and strive to accomplish goals which are not otherwise very easy to achieve. At the same time, they do not strive to achieve something which is practically impossible. Constantly motivated by their goals, they work very hard. It has been found that some of the highly motivated entrepreneurs have developed awareness of their worn strengths and weaknesses and also about the resources and constraints in the environment while striving to reach their goals. This concept is gender free. TR1.1 Entrepreneurship Concept What is Entrepreneurship Entrepreneurship is one of the four mainstream economic factors: land, labor, capital, and entrepreneurship The word itself, derived from 17th-century French entreprendre - refers to individuals who were “undertakers”, meaning those who “undertook” the risk of new enterprise Entrepreneurship is the dynamic process of creating incremental wealth. This wealth created by individuals who assume the major risks in terms of equity, time, and/or career commitment of providing value for some product or service. The product / service may or may not be new or unique but value must be infused by the entrepreneur by securing and allocating the necessary skills and resources. Process as involving all the functions, activities, and actions associated with the perceiving of opportunities and the creation of organizations to pursue them Who is an Entrepreneur A business founder Someone who has turned a normal community activity into business Anyone who creates and introduces value to customers through a product or service and expect to get a financial reward

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The entrepreneur is the individual (or team) that identifies the opportunity, gathers the necessary resources, creates and is ultimately responsible for the performance of the organization. Entrepreneurial Businesses

The two most important categories of businesses to consider when discussing entrepreneurship are small businesses and micro enterprises. Though these two categories do not capture all entrepreneurial enterprises, they comprise the lion's share of businesses that fit within the definition discussed above. TR

Creating An Entrepreneur

entrepreneurship

Creating an enterprise

TR Different Stages of Enterprise Building Realisation of Opportunity when an entrepreneur scans the environment and selects the product

Consolidation of resources, Services

an

entrepreneur

consolidates

(finance, land, buildings etc)

Implementation and entrepreneur Creation of venture Reference materials

resources are put together and starts an enterprise

1. Women Entrepreneurship Development Manual (ICECD) 1993 2. Change and Entrepreneurship, Jenks L. H, Harvard Univ. Press 1949

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Unit 1.1.2

Types of Entrepreneurs : : 60 minutes

Session Duration Session Rationale

This session will expose the trainees to the various types and forms of entrepreneurs with a view to widen up the mind set of the trainees

Entrepreneurship Attributes:
The entrepreneurship attributes being addressed include the need to be open-minded, creative and ability to identify business opportunities, risk taking

Session Learning Objectives
At the end of the session, trainees should be able to describe the various types of entrepreneurs

Learners Outcome
At the end of the session, trainees should be able to identify and describe various types of entrepreneurs

Trainers Preparation
go through the Reference transparencies as given Paper (enclosed) and prepare

Methodology
Lecture and focused group discussions

Session Delivery
1. Show TR2.1 and define the term ‘Entrepreneur’ 2. Show TR2.2 and discuss the traits and characterises of entrepreneurs 3. Divide the trainees into small groups of five.

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4. Using a flip chart, ask the groups to identify and describe the types of entrepreneurs within their communities. Explain to them that at this point they are no wrong or correct answers. 5. After 15 minutes have a plenary session. Capture their contribution on a flip chart These should be but not restricted to the following: Women entrepreneurs: Indigenous Immigrants Mum & bop Sole trader Innovator inventor TR 2.1 Who is an Entrepreneur A business founder Someone who has turned a normal community activity into business Anyone who creates and introduces value to customers through a product or service and expect to get a financial reward The entrepreneur is the individual (or team) that identifies the opportunity, gathers the necessary resources, creates and is ultimately responsible for the performance of the organization. TR 2.2 Types of entrepreneurs o o o o o Sole traders Inventors Innovators Agents of change Curious

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Hopeful about the future: Even in a situation where there are a lot` lot of disappointment and frustration. Risk taking: They have an inclination to take calculated. a positive image of ones’ abilities and achievements Such people not only show 4. Positive self-control: This includes self confidence as well as self-efficacy and. Problem solving: They have the tendency to approach problems with a view to solve them 6. Time conscious: They set goals for themselves and try to accomplish them within the set time framework Reference materials 1. Jenks L.HO 2.0 Entrepreneurial Traits Assessed in a Behaviour Test 1. moderate and. In constant search: Always scanning the environment for opportunities 8. Women Entrepreneurship Development Manual (ICECD) 1993 2. The need to achieve: This is evident in an individual’s desire to achieve some standard to excellence and success in performance 2. Initiative and independence: initiative but also exhibit a great deal of independence in their day to day behaviour 5. They tend to avoid both excessive high as well as low risks 3. H. Press 1949 9 . Change and Entrepreneurship. they don’t loss hope 7. intelligent risks. Harvard Univ.

The business organisation we are concerned with here range from one-man business to a large public company thousands of staff in a variety of locations. but it is certainly what distinguishes it from a non-business organisation.1.Unit 1. trainees will be able to: identify and understand the various form of business describe the form of business and. relate the regal requirement to each form of business Learning Outcomes Various forms of business identified and described Legal requirement relating to each form of business identified and discussed Instructional Methodology Trainer’s Preparation : Lecture and discussions Go through the handout HO 3. The session will therefore.3 Session Duration Session Rationale : Forms of Business A business organisation in contrast to a public service organisation or a charity.1 and reference material Make flipchart or transparencies as enclosed 10 . Making a profit may not necessary be the sole aim of the business. identify and explain the various forms of business and relate the legal requirement to their formation Entrepreneur Attributes for the Session Learning Objectives At the end of the session. exist to provide goods and services at a profit.

Sole Trader One man business.1 Forms of Business 1.1 and discuss the four main forms of business 3.2 after the exercise distribute handout H.2 on Legal requirements and discuss how this relates o businesses 4. Owner takes all risks and profits 2.O 3. Administer Exercise HO 3. Start the session by stating the rationale of the session as outline above 2. Partnership Consist of at least two to 20 persons who have agreed to form business Take all the risks and profits 3.Training Delivery 1. Show TR 3. Show TR 3.1 TR 3. Limited company Formed by two or more people (shareholders) The business is a separate entity from owners o liability falls on the business Fall into categories – Public limited companies o (plc) and Private limited companies 11 .

All profits made by sole trade are subjected to income Partnership Few formalities required for starting up No obligation to publish accounts Sharing of profits or losses Limited company In registering a limited company. The owner of the business takes all the profits but suffers all its losses and has all the problems and worries to himself 12 .2 Legal Requirements Sole Trader The legal requirements for setting up such business are minimum. the following are the legal requirements: The company’s name The location of the registered office The objectives/purposes of the company A statement that the liability of members is limited The amount of share capital HO 3. This means going it alone with oneperson business.TR 3.0 Forms of Business There are basically four form of business The sole trader The partnership Limited company Cooperatives The sole trader This is the simplest form of business.

Therefore. and usually not more than twenty. All profits made by sole trade are subjected to income tax rather than corporate tax levied on company profits The main advantages of operating as a sole trader are The formalities for starting up are minimum Complete autonomy to run the business as the individual wishes The profits of the business belong to the trader No public disclosure of accounts Disadvantages The sole trade is entirely responsible for the debts of the business The individual as a manager has to be responsible for all aspects of the business (marketing. sales. product development finance etc) Partnership A partner exists when at least two. persons agree to carry out a business together. the members of the partner are owners of the property and liable for its contracts.The legal requirements for setting up such business are minimum. As with sole trader. they are responsible for meeting their debts to third parties Advantages of Partnership Few formalities required for starting up Sharing of partner’s knowledge and skills Sharing of management of business\ No obligation to publish accounts Sharing of profits or losses Disadvantages Each partner is liable for the debts of the partnership 13 . Such an agreement can specify the right and obligation of each partner.

or persons. 4. A public limited company must make its shares available to the public for purchase and the company name must end with words. 2. 3. endowed with separated body. as a separate entity. unless otherwise provided for in the partnership agreement Limited companies A limited company can be formed by two or more people who become its shareholder. A private limited company on the hand is not compelled to of float is share to the public In registering requirements: 1. independent of its members. Public limited company. The corporation so formed is treated. 5. Limited companies fall into categories – Public limited companies (plc) and Private limited companies. the following are the legal The company’s name The location of the registered office The objectives/purposes of the company A statement that the liability of members is limited The amount of share capital Advantages of a limited company • • • In the event of failure of business. When a limited company is formed it is said to be ‘incorporated’ i. shareholders are protected against the loss of more than the nominal value of their shares The separate legal person of the company exist independently of the members Shares (in plc) are readily transferable 14 .Risks that the partners may not be able to work together at a personal level The death or bankruptcy of one of the partner will automatically dissolve the partnership.e. according to law. a limited company.

Usually promotion of cooperative has been encouraged by the government. it may be difficulty for a small company to borrow as extensively as desired since banks may be unable to recover their funds if business fails There are considerable legal procedures to be followed when setting up a company • Cooperatives Small groups of people who wish to set up a business along explicitly democratic lines and with the benefits of a limited liability can chose to establish a cooperative.Disadvantages • Precisely because liabilities are limited. Some of the rules governing cooperatives are • Each member must have equal control on the ‘one person one vote’ principle • Members must benefit primarily fro their participation in the business • Interest on the loan or share capital has to the limited Advantages Provide an opportunity for pooling of capital Encourages active collaboration between all section of the workforce Provide limited liability (if registered) Provides rewards on an equitable basis Disadvantages There is less likelihood of a level of profitability and growth that could be achieved by a limited company Relationships can deteriorate Decision making process can be lengthy 15 .

1. trainees will be able to explain the differences between an employee and an entrepreneur 16 . Yale Unv.Sixth Edition by Keenan and Riches (2002) Women Entrepreneurship Development Manual (ICECD) 1993 Barnet H G. 2. creditors? c. banker? 3. 4. Innovation. Press Unit 1. A Cole ( Business Law . Entrepreneurial attributes could still be found even in an employee. Entrepreneurial Attributes: Learning Objectives At the end of the session. New Haven. 3.2 Questions for Discussion 1. Why do some people prefer to establish a registered cooperative rather say a private limited company? Reference Materials 1. What is the principle distinction between a private limited company and public limited company? 5. shareholder? b. a.4 DIFFERENCE BETWEEN AN EMPLOYEE AND ENTREPRENEUR Session Duration 60 minutes Session rationale Being an entrepreneur does not only mean having a business. for what overall purpose are companies obliged to make public their constitution and activities? 4. What is the significance of limited liability to 2.HO 3. the Strategy for Economic Development. Management Theory and Practice by G.

1 as a supplement to your the answers given from the group discussion TR 4. HO4. she is an entrepreneur. (This could be a selfemployment unit or an enterprise with other) 17 . Group 3 to discuss the difference between an employee and an entrepreneur 3. When a woman starts a small business venture and employs a few people to keep it running. Thus.Session Delivery 1. we can say that all entrepreneurs are self-employed but all selfemployed are not entrepreneurs. Divide the trainees into two groups to read. Group 3: Identify and discuss “Advantages and disadvantages of being an employee”. Group 2: Identify and discuss “Advantages and disadvantages of being an entrepreneur 3.1 Difference between an Employee and Self-employment A woman running a small business establishment by working on one or two machines and looking after her business all alone is said to be self-employed. Group 1: Identify and discuss the difference between an employee and an entrepreneur 2.1 on Group 1 to discuss “Advantages and disadvantages of being an entrepreneur or Group 2 to discuss “Advantages and disadvantages of being an employee”. The entrepreneur is one who initiates and established an economic activity or enterprise. but manages the show herself.1 Questions for Discussion 1. discuss questions on TR 4. Distribute HO4.

Handbook of New Entrepreneurs. P. 1998 18 . Small Business Management II. These are common in agriculture industry Self-employment: This is a situation where an individual establishes their own business and pay themselves out of the profits Reference Materials 1. EDI. Oxford Unv. The work is done in a shot. Instead of paying a wage. factory. An important thing to remember about wage employment is that it is usually obtained in competition with other people who want the some job Sheltered employment: Though not that common in Zambia. office or other places of business. Unit 8. but their work is done in a special condition where they do not have to compete with others who want a job. FNST 2.Different Kinds of Employment HO 4. An example of sheltered employment is the special workshop which are sometimes established for persons with disabilities Cooperatives: Sometimes workers join together to share the running of a business. Press. in this kind of employment people also get a wage or salary. each worker gets a share of the profits. C Jain.2 There are several ways in which people can be employed Wage employment: This means working for weekly or monthly payment called wage or salary. “ Open Learning Programme for Entrepreneurs”.

and a risk taker Learning Objectives At the end of the session. The answer is in individuals creating business for themselves and earning a leaving out of it Entrepreneurship Attributes: The attributes being addressed in this session include the need to be creative.1.5 Duration Rationale 45 Minutes Self-employment Most countries in Africa.Unit 1. Most of the young people with good qualifications have great difficulties to find employment.1 and discuss the pros and corns of being self-employed Have the trainees tackle an individual exercise on HO 5. trainees should be able to Identify self-employment as a viable option Explain the benefits of being self-employed Explain the challenges of being self-employed Learning Outcomes Self-employment defined Benefits of self-employment as an alternative appreciated Challenges of self-employed explained and appreciated Session Delivery 1.1 Show TR 5.2 19 2. Zambia included face a serious shortage of employment. . 3. There are not nearly enough jobs for everyone. the answer does not lie in the government or indeed anybody else creating jobs for the many unemployed. innovative. This should be followed by a discussion on self-employment as viable option for trainees as shown in HO 5. independent. Using a flip chart discuss the generic explanation of self-employment. The difficulties are usually greater in rural areas where there is far much less development What can be done to improve the situation? Certainly.

But by the same token. There are far fewer limits when you are an entrepreneur 3. creativity.Working at your own business gives you the flexibility to decide when and where you will work. possibilities remain that you can be laid off any time. opportunities. comfort.Self employment provides for grate creativity and independence. Examples include plumbers. Distribute HO 5.Many people chose to be self-employed because they think they are worth more money than they are making on a job or they want to provide a better life for their families. the company can go bankrupt. You decide your hours and place of business 20 . Control. you are in control of you work and career 2.1 on”Self-employment as a supplement material Instructional Methodology: Lecture Handout HO 5. bookkeeper. secretary and manager all rolled into one 4. There is a limit to what amount of money one can make when employed.4. And while both are certainly possible. Creativity and independence. Freedom. gardeners and freelance photographer etc. demand upon your time and limits on how much money you can make are traded for independence. But if you are self-employed. These include: 1.1 Self-employed Self-employed are those workers who earn a living by running their own business. Many people start their business adventure dreaming of riches and freedom. A life of security. peculiar policies.Even if you like your boss and your job. Running your own business may require you to be marketing wizard. annoying co-workers. the first thing to understand is that there are trade offs in being self employed. Money. salesman. Difficulty bosses. and power. you also swap a regular paycheque and benefits for no paycheque and no benefits. and regularity is traded for one of uncertainty There are definitely pros and cons to be self-employed.

It is easy to become infatuated with the idea of owning a business. exciting. They know what is expected of them and what they need to accomplish each day. consider risks. and be successful. This is not true when you work for yourself.Not all entrepreneur ventures are successful. The hardest part of being in business for your self is that there is no steady source of income. calculated decisions TR 5. The work is very unpredictable There is need to consider both risks and rewards of entrepreneurship before deciding to jump in. Lack of structure-Many people like the structure for working for someone’s.1 Pro and Cons of Self Employment Pros • • • • Full control of oneself No limit to the amount of money to make Creativity and independence More flexibility Uncertainty Risks of not being successful Lack of structure Cons • • • 21 .The life of an entrepreneur is not necessary an easy one. It is challenging. But if one was to do it right. It is fun. The willingness to take a smart. Risk. spontaneous. One has to begin thinking like a businessman. paycheque does not come every 30 days 2.But there are downsides to being self-employed 1. and make informed. calculated risk is the hallmark of smart entrepreneurs 3. Uncertainty. then there is need to take emotions out of the equation. intelligent.

How do you fee about taking risks? a) I really like the feeling of being a bit on the edge. Are you a self-starter? a) Yes. but when I’ve had enough. c) I like the tried and true. 6. but would rather let someone else be responsible. 3. c) I just like to take things as they come. b) Being well organize isn’t my strongest suit.HO 5. How hard are you willing to work? a) I can stay motivated as long as necessary. I enjoy taking charge of things and seeing them through. How organized are you? a) I like to have a plan before I start. then I take part if I feel like it. 5. c) I think many other things are more important than work.2 Self-assessment Instrument Assessing Yourself 1. Are you a leader? a) I usually get people to go along when I initiate something. b) I will take over if I have to. 4. b) I will work hard for a while. 22 . I say let him. b) Calculated risks are acceptable at times. c) Most of the time. that’s it. I would rather follow than lead. I like to do things on my own b) If someone helps me get started. Do you like to assume responsibility? a) Yes. c) I let someone else get tings moving. I will definitely follow through. 2. but I can do it when necessary. b) I can give the orders if I have to. c) There’s always some eager beaver around wanting to show how smart he is.

b) Usually. but so is spontaneity. I am always thinking up new ideas. 10. 12. 13. c) I don’t like to be the one to decide things. I don’t let anything get in the way. c) No. I like knowing what to expect. I may just quit. How good is your health? a) I never run down! b) I have enough energy for most of the things I want to do. I do. c) If things don’t go right. 11. 23 . b) If I have to make up my mind quickly. I can be c) Not really. b) I am disciplined when I need to be c) Not really. Are you decisive? a) I can make up my mind in a hurry if I have to. Can you stick with it? a) If I make up my mind to do something. Can you live with uncertainty? a) Yes. c) I run out of energy sooner than most of my friends. failure to plan is planning to fail. not really. Do you have a lot of willpower and self-discipline? a) Yes. 8. b) When I need to be. but I don’t like it. my nature is more laid-back. 9. 14. Do you plan ahead? a) In my book. Are you creative? a) Yes I am. c) I take one day at a time and let life take me where it will. b) I can if I have to. b) Planning is important. Are you competitive? a) You bet. but I don’t like it. b) I have an occasional brainstorm. c) No.7.

for example). There are many ways to start your own business. Education. You can always take business classes. 2. If you have several “c” answers. If you answered “a” on more than half of the questions. Reference Material 1.India) 1999 Fredrick Harbison. Small Business Management II. Another option would be to get a partner who has the skills you lack. read more books. (EDI. it does not mean you will never be ready. Can you live without structure? a) Yes b) Actually. then you are not quite ready to start your own business.15. If most of your answers were “b” you’re likely to encounter more trouble than you may want. you have the personality needed to run your own business. MacGrow-Hill) 24 . If the results of this quiz tell you to slow down. I like routine and structure in my life. Manpower & Economics (New York. While certain aspects of entrepreneurship are innate (the willingness to take a risk. But that does not mean that you can’t get ready. many are learned (such as knowing how to conduct market research). the idea of living without a regular job or pay check makes me nervous. or listen to business tapes in order to learn more. and if you are not ready now. c) No. that is good.

25 .2: ECONOMIC TRENDS IN ZAMBIA Unit 1. Give a summary of the session 1.2 and discuss the “Social Political Trend in Zambia” 3. trainees will be able to: Appreciate the historical background to the Zambian economy and its impact on the entrepreneurship growth Will be able to explain the various social-political trends in Zambia and how these relate to entrepreneurship growth in the country Session Outcome Instructional Methodology: Lecture and focused discussions Session delivery Distribute HO 6.UNIT A1.1 Historical Background to the Zambian Economy Session Duration Session Rationale To establish the various economic and social factors that have been at play in the shaping of entrepreneurship in Zambia since independence : 60 Minutes Session Objective At the end of the session.1 and discuss the Historical background to the Zambia Economy 2. Distribute HO 6.2.

Examples. One Party State: A political situation in which there is only one political party in the country. copper. This was a situation in Zambia from 1973 to 1991.Tips Please acquaint yourself with the five year national development plans HO 6. This state of affairs did not promote the growth of other sectors later on encourage entrepreneurial activities Urbanisation: Zambia is one of the most urbanised countries in SubSahara Africa. United National Independency Part was the only party in the country • • • • 26 .1 Historical background to the Zambia Economy • • Zambianisation: A strategy adopted by the government soon after independence in 1964 Objective of this strategy was to empower Zambian by offering them senior poison that were held by the European colonial masters Nationalisation: This was a state programme that sow the take over of key companies by the government Substitution Industrialisation Strategy: A deliberate policy to start manufacturing locally good that were being imported into the country. This is at the expense of other sectors like agriculture. Livingstone Motor Assembly. tourism. Rover Zambia in Ndola Mono-culture Economy: Zambia is highly dependant on only one economic resource. About 60% of the Zambian population leaves in urban areas particular along the line of rail. manufacturing.

• Multi. This is considered to be too high for a country like Zambia • 27 .6%. This was the case from 1964 to 1973 and 1991 to date Population growth rate: The average population growth rate for Zambia has been 3.Partism: A political situation where there are more than one party in the country.

hospitals. However. At this time.2 Social-political Trends 1960’s The first ten years of independence was marked by an outpouring optimism There were huge investments in infrastructure and human resource Huge sums of money were put into ministries. Social amenities were not enough to go round 1990 The era saw the end of the one-party-system and the reintroduction of the multipartism. Kawambwa Tea.HO6. This was followed by almost full liberalisation of 28 . inflation sky-rocketed. the cooperative movement. most of the economic activities were still concentrated in a few white settlers New measures were put in place to create jobs and self employment particularly for the indigenous Zambians. Kafue Nitrogen Chemicals etc) 1970’s The country started experiencing economic slowdown. schools. For example. these reforms put the country into even more stress. Prices of imports were getting higher and higher thus making operation of most of the enterprises in the country difficulty as these are highly dependant on foreign inputs Financial support from overseas was nowhere near enough to resolve the rapidly growing balance of payment position 1980’s The country adopted the IMF supported economic reforms programme. the county started experiencing huge drift of rural dweller into towns particularly along the line of rail. Not everyone was able to be absorbed in formal employment. establishment of at least a factory in major districts (Kapiri Grass. generally making the development of enterprise in the country unattainable Due to the lopsided development between the rural and urban areas. The strength of the local currency weakened significantly. global market price for copper started becoming weaker. factories and roads. This trend has social consequences like high crime rates in urban areas.

Employment levels are still low and poverty levels are high Reference Materials 1. Growth and Characteristics of the Informal Sector in Zambia. III.the economy. 2000 The country started experiencing positive growth. 3. These changes were accompanied by the change of government as well. Zambia National Development Plans I. Tolosi S & Nawiko M 1997 Emergence. 1991 29 . 2. The era was also market with election and the new government that was formed pledged to stump out corruption. The mining sector which was at the verge of collapse has picked up with the introduction of new ones. II. The country is still certainly facing a number of challenges like HIV/AIDS which has to take a toll on the productive sector of the society. IV Informal Sector Business Activities in Lusaka Urban Districts.

However.Unit 1. Entrepreneurial Attributes: Resourcefulness.2. creativity. 2. innovativeness.2 Natural Resources as They Relate to Entrepreneurship Session Duration Session Rationale Every location in this country is endowed with national resources. discuss. only a few are able to harness these resources for their livelihood. 60 Minutes Learning Objectives At the end of the session.1 “Identification of Resources and their usefulness to entrepreneurial activities” Guide the discussion by pointing out the importance of each resource identified Tip: In the discussion emphasise on the importance of human resources and finance as some of the critical resources for any enterprise 30 . trainees will be able to • List the various resources found in Zambia • Identify the potential usage of these resources for entrepreneurial growth Instructional Methodology: Lecture and focused discussions Activities 1. and answer questions on TRI 7. This session aims at exciting the trainees to be critical to the resources around them. Divide the trainees into small groups and let them read.

2.TR7. Identify a business that you would like to venture into What are the resources required for the business you have identified? What is the importance of each resources identified? 31 . 3.1 Individual Exercise: Resource Identification 1.

trainees will be able to: • Explain the term. They are. Divide the trainees into small groups and let them read an exercise on HO and identify and discuss factors encouraging informal sector growth 3. or non at all and utilise very low technology and skills. They operate on very little capital.8. largely of independent and self employed. They mostly not recognised and supported by government. highly unstable employment for those employed by such enterprises. and which generally provide very low and irregular income and. They are formal because for most part they are not registered with the government.0 Informal Sector Growth Session Duration Session Rationale: The session gives an appreciation of the informal sector in Zambia Learning Objectives At the end of the session. They operate on very low levels of productivity. Show TR and define the term “informal sector” 2. Supplement the trainees discussion with a discussion of HO Reading Material The Informal Sector These are very small units producing and distributing goods and services and. informal sector • Identify factors encouraging the development of informal sector • Understand the role the informal sector plays in Zambia Instructional Methodology: Lecture and focused discussions Activities 1. most of the time compelled by circumstance to operate outside the 32 .

During this time. Those excluded from the employment in the modern sector constitute a large labour surplus. the urban district informal sector business activities started in 1930. they have to creative for themselves activities which can provide them with income Other recent developments like the 1980s recession. They tend to have very little or no access to organised markets and to credit systems The importance of the informal sector in Zambia can not be over emphasised. charcoal. In Lusaka for instance. and modern industry and services on the other – to provide adequate incomes or employment opportunities to a rapidly growing labour force. Since the people concern can not afford to be employed for any length period of time.framework of the laws. The steady stream of migration from the rural areas urban areas coupled with increasing population growth meant that urban modern activities have been au able to absorb more of the burgeoning urban labour force. The sector employees between 40% to 60 percent of the urban labour force In Zambia. reed-baskets could not be provided in modern markets Factors encouraging the Informal Sector Mostly it is due to the inability by other sectors of the economy – agriculture or other rural activities on the other hand. Products such as firewood. These ended up in forms of all sorts of business activities which the majority fall in the informal sector 33 . The restructuring of the civil service and the closing of most parastatal organisations saw a huge number of people without employment. the informal sector can be traced from colonial days of mining. informal sector developed because of the need to provide certain goods and services to European settlers and African settlers. the IMF/ World Bank adjustment programmes have further resulted in the growth of the informal sector.

Lusaka 1993 The Dilemma of the Informal Sector (ILO) 1991 Informal Sector Business Activities in Lusaka Urban Districts. 2. window frame and burglar bar manufacturing Soap manufacturing Tailoring Food processing Construction of private homes Stone crushing and selling Street vending Shoe repairs Motor vehicle repairs Welding Hair dressing Reference: 1. Nanjappa K. 4. 3. Tolosi S & Nawiko M 1997 Emergence.The following are the examples of the informal sector in Zambia Brick making Door. L Min. 5. How to Motivate Entrepreneurship in Zambia. 1991 34 . of Commerce Small Enterprise Development Programme. Growth and Characteristics of the Informal Sector in Zambia.

0 The Role of Enterprises in Economic Growth Session Rationale The role of small sector has been recognised as the most powerful and vibrant sector of the Zambian economy. Sow TR and explain the role of enterprise in economic development of the country 3. small medium and large enterprises • Define the terms economic growth and development • Explain the role of enterprise in the Zambian economy Learning Activities Ensure that the learning activities include the following: • A generic definition of micro. 35 . It has the potential to provide more employment per unit of investment and therefore. micro. The ancillary units provide the support services required to the growth of medium and large scale sector in the country. micro.9. small. medium and large enterprises. small. Distribute HO as supplementary material Reference Material The Role of Enterprises in Economic Growth 1. economic growth and development • Explanation of the role of enterprise in Zambian economic Instructional Methodology: Lecture and focused discussions Session Delivery Show TR and define the terms. medium and large enterprises. The small sector has shot in to prominence over the years through its multifaceted contribution Entrepreneurial Attributes Session Objectives At the end of the session. the government attaches great importance to the development of the small and the ancillary sector. trainees will be able to: • Define the terms. economic growth and development 2.

Nanjappa K. exception of Ndola Rural District. L Min. Thus it may be seen that vast areas of the country are starving of industries and the benefits of industrial economy. Lusaka 1993 The Dilemma of the Informal Sector (ILO) 1991 36 . are earning five times more than their relatives. and where without foreign collaboration and technical knowhow imported from foreign lands. so that within a very short time the regional imbalances are corrected all over the country through the efforts of entrepreneurs. In fact the creation of Small Industry Development Organisation (SIDO) then was done with a view to take the responsibility of ways and means to create such an atmosphere where the entrepreneurs would find the appropriate assistance for the fulfilment of their image. Nearly 60% of total population of the country are living in rural areas. urban district. Thus entrepreneurship Zambia shall be identified with the inclination of new entrepreneurs to penetrate all the rural parts of Zambia. The time has come to identify entrepreneurship as separate from industrial opportunism. Lusaka urban district. In the context of the traditionally shy investment capital in Zambia. Reference: 6. This is a highly unsatisfactory state of affairs and it calls for Zambian entrepreneurs accepting the challenge to take calculated risks and adventures in moving bravely into such sophisticated centres without in any way relying on foreign collaborations. Livingstone district. As already pointed out entrepreneurship involves risk and adventure through calculated and the resurgent youth of the country are most suitable. 8. and the measures mentioned above are directed towards such identification. The Zambian industry has no venture to progress. By and large. People on the Copperbelt and Lusaka areas for instance. not only a positive entrepreneurship has to be developed but also the capital to sustain the adventure of entrepreneurship. Kafue Township.In Zambia. there is a challenge before the class of entrepreneurs to accelerate the tempo of industrial activities in such centre in which the traditional capital has remained shy to enter. and Copperbelt province of Ndola Rural district. Zambian Industries are concentrated only at Kabwe. 7. and yet there are fewer industries to support them. of Commerce Small Enterprise Development Programme. Imbalances The second vital challenge for the entrepreneurs is the dangerous imbalances in the regional economy. How to Motivate Entrepreneurship in Zambia.

Suggestion on additional policy guidelines should be encouraged Reading Materials Small Enterprise Development Act 1996 As the means towards the Government of Zambia’s support of small scale enterprise. Using material provided in HO 10.1. the Small Enterprise Development Act was enacted in 1996 This act led to the creation of the Small Enterprise Development Board The function of this Board included: 37 . as the trainees to discuss how these policies could lead to the promotion of enterprise development in the country. In small groups.10 Policy Instruments Supporting Enterprise Development 60 Minutes Session Duration: Session Rationale Session Objectives At the end of the session. trainees will be able to: • Outline policy instruments supporting enterprise development • Relate policy instruments to enterprise development Learning activities Ensure that the learning activities include the following • An outline of the policy instruments supporting the development of enterprise in Zambia • Relation of policy instruments to enterprise development Instructional Methodology: Lecture and focused discussions Session Delivery 1. prepare transparencies or flipchart and discuss the Government of Zambia policy on enterprise development 2.

Vocational and Entrepreneurship Training Policy (GRZ) 1996 38 . Small Enterprise Development Act No. collect. Technical Education. equipment and supplies • Provide marketing support services to the micro and small enterprises • Register. technology. research and disseminate information relating to micro and small enterprises • Monitor and coordinate activities and programmes of promotional agencies engaged in micro and small scale enterprise development • Assist in the development and upgrading of appropriate technologies for micro and small enterprises • Initiate and develop industrial estates and common facilities for use by micro and small enterprises • Establish training and processing centres to provide machinery and equipment • Develop the Zambian entrepreneurship • Arrange for independent training. raw materials.• • To promote and facilitate the development of micro and small enterprise To create a conducive environment for attaining of the purpose Specifically that Board was to: • Formulate. 26 of 1996 2. coordinate and implement policies and programmes to promote the development of micro and small enterprises • Monitor the efficiency and performance of micro and small enterprises having regard for the purpose for which they are established • Establish a data base for facilities and sources of finance. machinery. management and consultancy services for macro and small enterprises • Provide financial services • Make recommendations to the Ministry on any legislative reforms which may be required for the development of the micro and small enterprises Reference Material 1.

how are these being applied in an enterprise? c) Group Three: What are the licenses and permit requirements in operating a particular enterprise? • Give each group approximately two hours in which to collect this information Assemble all members for presentation • In case some trainees have not acquired the exact information.Statutory Obligation Relating to Enterprise Development Session Duration Session Objective At the end of the session. 39 . Divide the trainees into three small groups. This should include • PAYE o NAPSA o Labour laws o Licensing and permits Instructional Methodology: Focused discussions and Field visits Session Delivery 1. trainer may guide them through a short lecture 2. Let each group identify an enterprise of their choice with the locality which they will visit and come and report on the following: a) Group one: What are the enterprise’s obligation as regards Payas you earn (PAYE) and National Pensions and Savings Authority (NAPSA) b) Group Two: What are the labour laws related to an enterprise and. trainees will be able to: • Apply statutory obligations to enterprise development 60 Minutes Leaning Activities Ensure that the learning activities include the following Application of statutory obligation to enterprise development.

What are the enterprise’s obligations as regards Pay-as you earn (PAYE) and National Pensions and Savings Authority (NAPSA) What are the labour laws related to an enterprise and. 2. how are these being applied in an enterprise? What are the licenses and permit requirements in operating a particular enterprise? 40 . 3.Activity 1.

Show TR12.12 Support Systems Session Duration Session Objectives 60 minutes At the end of the session.1 and discuss the financial and other incentives for enterprise development 2. trainees will be able to • Identify support services to enterprise development • Discuss the role of support systems to enterprise development in Zambia Learning Activities Ensure that the learning activities include the following A generic discussion of the support systems to enterprise development A generic discussion on the roles of support systems to enterprise development Instructional Methodology: Lecture and focused discussions Session Delivery 1.2 and discuss exemption enterprises registered under Small Enterprise Development Act enjoy as a means toward their development 41 . Show TR12.

effective use of loan funds and repayment mechanism by enterprise so as to curb misuse of financial resources o venture capital TR12.TR12. provide the following financial services and incentives: • • • • Identifies entrepreneurs. in order to facilitate the development of enterprise.2 Exemptions An enterprise registered Under Zambia Development Agency is entitled to the following incentives • • • • • • • Exemption from paying of tax on income for The first three years of operation for an enterprise operating in an urban area The first five years of operation for an enterprise in rural area Operating of a manufacturing enterprise for the first five years without manufacturing licence Exemption form payment of licensing fees Exemption from payment of rents on factory premises for the first five years Trade licensing act shall does not apply to such enterprise Reference Material 1. and projects which require financial assistance Provides information on the sources of finance Assists enterprises with the preparation of business plans. project proposals and other loan application documents Monitor. does. establish and design standards for loan administration. 26 of 1996 42 . Small Enterprise Development Act No.1 Financial Services and Incentives The government of Zambia through the Small Enterprise Development Board.

43 . Network for enterprise development. Trainees will be able to: 1. attitudinal change that will lead to self motivation and generation of business ideas. Demonstrate self motivation.MODULE NO. 3. 5. 138-02-A MODULE TITLE: Developing Entrepreneurial Competences MODULE: INTRODUCTION MODULE AIM The aim of the module is to build entrepreneurial competences. Mobilise resources. LEARNING OBJECTIVES At the end of the module. Develop business ideas. 4. Implement business decisions. 2. 6. Identify and select business opportunities.

the trainee will be able to: 1. the similarities about entrepreneurs are the common personality traits they share and apply to succeed in developing a successful enterprise. it will isolate their personality strengths and weaknesses to start an enterprise. The session affords them an opportunity to identify weak points that they can do something about. 3. Explain the relationship between entrepreneurial characteristics and the success of the enterprise. However. 2.1 Developing Self Motivation 2. In the end. Entrepreneurial Attributes Entrepreneurs are not the same since they come from different background with varying interests in business types. It also enables the learners assess their ability to venture into the entrepreneurial career. Session Learning Objectives On completion of this session. Describe entrepreneurial traits and characteristics. List the entrepreneurial traits and characteristics.1.UNIT A2. traits and 44 .1 Entrepreneurial Traits and Characteristics Session Duration: Two Hours Session Rationale The reasoning behind this session on entrepreneurial traits is that it enables your learners to explain what drives the individuals that have succeeded in enterprise development.

Refer the learners to the session on entrepreneurship. The learners will then identify traits and attributes that make individuals succeed in business. Learner Activities/Environment In this session. learning outcomes and the learning activities. The entrepreneurial traits and characteristics listed 3. The learners will identify situations that will require the application of the entrepreneurial traits to ensure success of an enterprise. Entrepreneurial traits and characteristics correctly describe. Record the main parts of the definitions on the board Draw the attention of the Learners to the fact that an entrepreneur is a person like you and any one of them. Explain that to understand entrepreneur one needs to understand his/her personality 45 .Learning Outcomes The learning outcomes are: 1. Learners will brain storm on the meaning of entrepreneur’s traits. Introduction Introduce the session by reviewing the session objectives. 2. Instructional methodology 1. Ask Learners to define the word “entrepreneurship”. The relationship between entrepreneurial traits and characteristics and the success of the enterprise explained. A list of traits and attributes will be developed.

Traits are a mixture of an individual set of qualities. iv. Present the results to plenary. Key points to include in your presentation are: i.2. ii. Give example of entrepreneurial traits and how an entrepreneur is able to draw on their traits to solve business problems. Make a brief presentation an entrepreneur and the traits. persistent pursuing of an opportunity. including behaviour. v. if the class is small divide them in such way that there are at least three people in one group but not more than five. Main Activities Ask the learners to define the words traits. needs. Write down the following instructions on the board : i. List the common traits and characteristics common among successful entrepreneurs. person or persons and their personality. vi. Explain how the entrepreneurs apply the trait or characteristic listed to solve problems experienced in business? iii. Complete the table below on a flip chart paper. nature. Influencing factors of entrepreneurial traits and characteristics. iv. Divide the class into four groups. Allocate time for the assignment (Time may vary from one class to another – the exercise should not take more than 45 minutes) 46 . drive and main beliefs. You are born with and other you get traits through informal and formal training. v. These traits have been observed through observation and studies among successful business persons in a number of countries. ii. iii. the establishment of business or organisation and the achieving of benefit and growth. There four parts to the meaning namely. Write down the responses on the body or flip chart paper.

Success in Business and Entrepreneurial Traits Trainer Preparation: Review the materials on Entrepreneurial traits. Key Points to note are: i. Clarify issues that may arise from the presentation and feedback from other learners. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Ask them to state the general conclusions from the lesson. 47 . Entrepreneurial Traits Business Challenge Application the Traits of During the presentation. ii. iii. Organise all the materials needed for the session (Hand outs. Flip Chart paper) Draw the Entrepreneurial Traits Application table.Entrepreneurial Traits Application Table No. List of entrepreneurial traits and their meaning. Finally. markers. ask for the feedback from the other learners. give your overall feedback. 3. Definition of entrepreneurial traits.

Mathew Sartwell. Essentials of Entrepreneurship. Thomas W. This explain why individual team up to draw on their personality strengths to from a formidable team of investors. the traits can be developed. Traits and characteristics as they relate to enterprise success correctly explained.Prepare an example on the application of known entrepreneur in your area and their known personality that helps the individual solve difficult problems. Piatkus. London. Effectiveness of Training Used ii. Napoleon Hill’s Keys to Success. Usefulness of Entrepreneur’s Traits and characteristics to Learners career. 1995 2. Scarborough. Reference Materials: 1. one can go into business with other individual who possess the missing traits. However. Session Evaluation Collect and analyse the data on the following: i. Zimmerer and Norman M. Assessment Criteria and methodology: Criteria Entrepreneurial traits and characteristics correctly listed and explained. Methods Individual Assignment. 48 . Group Exercise. Pearson International. Tutorials. Trainer Tips: Note that no one individual can have all the traits listed. Alternatively.

persistent pursuing of an opportunity.iii. Mastery of Skills or Subject by Learners LEARNERS HAND OUT What are entrepreneurial Traits? In the first module you were introduced to the meaning of an entrepreneur. Traits are a mixture of an individual set of qualities. nature. needs. drive and main beliefs. including behaviour. Let us look at some of the traits and characteristics. Culture of the community (society). The traits are influenced by: Characteristics they born with. the establishment of business or organisation and the achieving of benefit and growth. These traits you are born with and other you get them through informal and formal training. You must understand that there are many meanings of the term entrepreneur. In all explanations you will come across or create yourself. You may ask what are traits and characteristics. These traits have been observed through observation and studies among successful business persons in a number of countries. The Entrepreneurial Traits and Characteristics List Entrepreneurs are successful for a number of reasons. Political and policy environment These sources of influence either encourage or discourage the growth of entrepreneurship. Family. Relevance of Training Material to the session iv. person or persons and their personality. Education. you may notice that there four parts to the meaning namely. Do you have the following traits? 49 . work and. In this session we shall discuss the entrepreneurial traits and characteristics.

a different approach. 50 . You set clear goals – You road to success must begin with asking yourself where you are going. You have initiative – you are self-reliant. you are committed to your team and the people you work with in the business.a driving passion to carry out your idea.You have belief in what you are capable of achieving. The existence of a clear and specific purpose. and have willingness to initiate action without needing or taking direction from others and have ability to solve problems.i. viii. iii. You are disciplined – you have self control to plan and carry out the plan. ii. You are persistent – you do not tire to hunt for success despite difficulties on the road to success. vi. be it in the form of a new technology. You know where you are going and how you will get there because you have refined your goal into action and you have put in measures to check progress. iv. You have strong passion . You have strong self-confidence. v. vii. If one door closes on you another is identified and opened. You are committed . You act on opportunities – identify and act on new or unusual business opportunities by looking for resources to create something valuable. aim or goal is the starting point for your road to achievement. You are willing to be lonely and make tough decisions and believing you are right despite the majority thinking you are wrong. a more thorough application of known technologies or a combination of all three.

Start the business. Mobilise resources to start the business. Success in Business and Entrepreneurial Traits Like many nice things in life. Develops a business strategy (way of doing business). You many lose your effort. passion and 51 . they remain unexploited. x. Expand the business. There are many opportunities out there unless one has a trait of identifying and developing them. time and money you have put in the business. In business there are many dangers. Or the business many be a problem to other people who are not in any way connected to it. The entrepreneur to successfully own a business goes through the following activities: Identifies and develops a business opportunity ( to be discussed in the next sessions). You are knowledgeable about business . information. You as an entrepreneur are advised to focus on reducing risk deliberately by planning and managing the business well.ix. Business is not for the weak in body and mind.You look for information within the business or its surroundings to help you achieve your purpose or avoid problems The list of these traits is not exhausted. You may think of other characteristics or remember certain behavior among the business persons you have come across. Many people think entrepreneurs are generally thought of as tremendous risk takers. You are a moderate risk taker . To develop a business strategy requires developing a clear goal. owning and managing a business successfully is tough.You are not a gambler who throws around money without having control over the results of your action.

having personal initiative to solve problems. This is one of the strongest tests to starting a business. Low capital. Some of the problems experienced by start up are as follows: Lack of experience. Negative attitudes to work among employees A business that is expanding will need new management to take care of increased responsibilities. There are enough negative influences from your friends. You need to rely on some of the traits above. Poor planning. 52 . In this new environment mistakes are bound to be made. Poor execution of plans. Excessive buying of fixed assets. employees and suppliers are new. customers. A new business has as many needs for care as a newly born baby. the owners. If the entrepreneur was owner-manager it is time to take initiative and take the opportunity of employing experienced and skilled human resource in the business. Poor location. I am sure you have met many people say that they are unable to go into business because of lack of resources. The entrepreneur needs to have the character to be focused and apply some of his/her traits such as being disciplined to handle temptations. Poor customer care. In a new business almost everything is new. Too much stock.commitment. seeking information on resource providers. namely. persistent in asking fro support even when you have been turned down several times and showing confidence in what you plan to do to win over others. poor cost control. having the goal in mind despite current difficulties. In addition the business belongings are new. family and community to discourage you put the idea on hold nay put the easy way out and seek employment. For a business activities to start you need resources but resources are few and those who have resources are not easy to help.

Ten entrepreneurial traits have been listed and explained. 2. Name one successful entrepreneur you know very well. goal setting. Exercise Answer the following questions: 1. Lastly the entrepreneurial traits have been linked to the success of a business through the main activities of an entrepreneur starting from opportunity identification to expanding the business. Explain how training can help develop entrepreneurial traits? 53 . Discuss the entrepreneurial traits that have been observed displayed by the entrepreneur you have mentioned. commitment. self discipline and information seeking can be applied at each stage of the entrepreneurial stage. opportunity seeking. We looked at the behaviour of a person that influences entrepreneurial activities. Each of the entrepreneur traits.Summary In this session. personal initiative. passion. we described traits of an entrepreneur. persistent.

2. Describe personal attributes and talents. 3. Session Learning Objectives On completion of this session. Identify personal attributes and talents. 3. 2. 54 . 2. An entrepreneur is an individual who through socialization and formal education and training has acquired knowledge and skills that should be applied in the business. skills and experiences to establish and manage an enterprise. What they enjoy doing has a relationship with type of personality they have.2: DISCOVERING YOURSELF Session Duration: 4 Hours Session Rationale It is important for the learners to discover their personality in order to see whether entrepreneurship is for them.1. Discovery oneself also helps in understanding your strong and weak points. The personality may assist learners chose a business that will be enjoyable rather than a punishment. Personal attributes and talents identified. Learning Outcomes The learning outcomes are: 1. It assists in realizing that one needs the support of others to succeed in business. Personal attributes and talents correctly described. Entrepreneurial Attributes An entrepreneur needs certain personal talents. Personal talents and attributes related to entrepreneurial success. Relate talents and attributes to entrepreneurial success. the trainee will be able to: 1.

Learner Activities/Environment
In this session Learners will describe the terms “personal attributes. Learners will identify a business person interview him/her and identify the talents and attributes he/she may have.

Instructional methodology
1. Introduction
Introduce the session by reviewing the session objectives, learning outcomes and the learning activities. Refer the learners to the session on entrepreneurship traits; Ask Learners in groups of two to describe the terms “personal attributes”. Ask them to write them on paper and one every group is through collect all the description; Stick the papers on the wall; Review the definitions and identify common words, Write down a definition on the board; 2. Main Activities Explain the importance of understanding and taking note of personal attributes and talents in entrepreneurship; Key points to include in your presentation are: i. Motivation to go into business; ii. Career choice; iii. Type of business to start; iv. Size of business. Explain the attributes and talents as outlined in the Learners Manual; Form groups of four and assign them to the following: i. Identify the local business person: ii. Visit the Business person, interview him and identify the talents and attributes he/she may have: iii. The following guide may assist the Learners ask the questions:

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Interview Check List Ask these questions. The answers to these Questions may “Yes” OR “No” . Ask for explanations to the answers. a. Why do like this type of business? b. How do you spend your free time? c. What is your attitude towards parties and people events d. What is the role of friends in business? e. Who do you find difficulties to influence in your business and why? f. What are the challenges you experience in planning and organizing? g. What is the most difficult thing to control, in business? h. What are your human resources opportunities and challenges? i. What is your view about partnerships? j. What are the advantages of owning a business alone? k. What do you find exciting marketing and selling to customers? l. Who prepares financial statements in your business and why? m. Who manages the production section of your business? What are the reasons for the answer? n. Do you always find that there is not enough time in any day? Why? Ask the Trainees to present; Ask for feed back from the class; Present the highlights of all the presentations

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3. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Ask them to state the general conclusions from the lesson. Key Points to note are: i. Explanation of personal attributes; ii. List of entrepreneurial attributes and talents; iii. Highlights of the short field investigation.

Trainer Preparation:
Review the materials on Self Discover; Organise all the materials needed for the session (Hand outs, markers, Flip Chart paper) Prepare “Interview Check List”; Identify business persons that may be interviewed; Organise interview logistics

Trainer Tips:
To cut on costs you may have to invite the business persons to school to be interviewed in class by the Learners. You need to emphasize that one does not need to have all the attributes to succeed in business.

Reference Materials
1. Beardwell Ian, Huaman Resources Management, Prentice Hall Essex, 1994; 2. Mathew Sartwell, Napoleon Hill’s Keys to Success; Piatkus, London, 1995

Assessment Criteria and methodology
Criteria
Personal attributes and talents correctly described; Personal attributes and talents identified; Personal talents and attributes related to entrepreneurial success.

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Methods
Individual Assignment; Group Exercise; Tutorials;

Session Evaluation
Collect and analyse the data on the following: i. Effectiveness of Training Used ii. Usefulness of Entrepreneur’s discovery of oneself to Learners career; iii. Relevance of Training Material to the session iv. Mastery of Skills or Subject by Learners

LEARNERS HAND OUT
What Are Personal Attributes and Talents? You have personal attributes and talents that can make you succeed in business. Personal attributes and talents are the right skills and abilities for the job. A successful career in business is an outlet for your personality, interests, skills and values. So what are your personality, interests, skills and values? The sum total of these qualities is called your personality. Understanding your personality can tell you such things as how much encouragement you need from other people to do anything. Or are you a person who is relaxed working on your own? Are you an organised person or otherwise. Do you approach everything caution or you one who goes through with anything without concern? It is important fro you discover if your personality in order to see whether entrepreneurship is fro you. Please you must realise though that your personality may assist you chose a business that will be enjoyable rather than a punishment. What you enjoy doing has a relationship with type of personality you have.

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Identifying Personal Attributes and Talents It is useful to identify your personal attributes so that you will be able to decide on what type of business is suitable you. These attributes will also be useful in identifying business opportunities, establishing the business, managing the business and initiating its growth. Ask yourself the following questions: Do you like to work with machines and tools? Do you like to observe, learn, examine, analyze, and solve problems? Do you like to use your imagination or creativity to solve problems? Do you like to work with people; to inform, enlighten, help, train, develop or cure them; Do you like to work with people to influence, persuade, lead, or manage for organizational goals or economic gain? Do you like to work with data? Do you have functional skills? (Skills not necessarily associated with a specific job and are used to accomplish general tasks or functions of a job e.g. problem solving); Do you have content skills called work-content skills, specific and specialized to one job, such as preparing a financial statement, or fixing a car? Do you have adaptive skills and ability to learn quickly, teamwork, being self motivated, self-awareness, empathy, persistence, optimism, and social deftness; Applying talents and attributes to entrepreneurial success There are a number of skills you'll need to succeed as an entrepreneur. You should not worry if you do not possess them all. As an entrepreneur you can always employ people with those skills to add to your abilities. Below are skills you may need now or later to help you in business: Interpersonal Skills As an entrepreneur you should have good people skills. Your ability to freely mix with many people is a valuable asset that is worthy more than the money you may have in a bank. When people like you, its is very likely they will like your business too.

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Networking Skills Networking can be a useful business approach to establish build partnerships and discover new business contacts. A successful entrepreneur is a net worker. You must be visible and easy to remember in gatherings. Leadership Skills Leadership is the ability to influence. Once you are an entrepreneur it means you have taken up a leadership role. You may be owner-manager – worker (OMW), the skills of leadership is very important. Management Skills Management skills mean planning, organising, leading and controlling activities that cover operation, employees, customer, suppliers, and government agencies. Employee Relation Skills Employees are the most important resource your business has. It is essential that you manage this resource very carefully. It is a resource that can come in today and walk out tomorrow. A good relationship with Human resource will make your life much easier Team Building Skills You must build a team of essential professionals who you share the same vision. You do possess all the needed skills and experience assembling a team of employees, partners, accountants, your lawyers, and bakers will take your business to a higher level. Marketing and Sales Skills Marketing and selling skills are essential to bringing in revenue. Unless the customer is aware of and interested in what you are selling they will never buy. If marketing and selling are difficult employ a sales person. Financial Management skills Understanding cash flow will save you business going under faster than you can register it. The danger areas are poor working capital, cash withdraws by the owner, credit mismanagement, and misunderstanding of cash surplus and profit.

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Time Management Skills Time cannot be stored for future use. It cannot be bought from a shop. It is not elastic. You can only use or misuse time available. Time is one of the resources whose value is underestimated until it is too late. There a number of ways that will increase the wastage of time namely: meetings, poor planning, repeated interruptions, failure to list priorities, failure to delegate, being disorganised, indiscipline and failure to say” no”. Do not worry if you not have these skills. Many people even those who have been running business for many years do not have all these skills. As an entrepreneur, however, you must learn some of these skills to help you run the business effectively. SUMMARY Every one has personal attributes and talents that can make one succeed in business. You need to have personal attributes and talents that are right skills and abilities for the particular career. There are a number of skills one needs to succeed as an entrepreneur. The skills are interpersonal, marketing, management, and technical skills. You should not worry if do not possess them all. As an entrepreneur is you can employ people with those skills to add to your abilities. Summary In this unit we discussed that a successful career in business is an outlet for your personality, interests, skills and values. We emphasise that it is valuable to recognize your personal attributes so that you will be able to decide on what type of business is suitable you. In addition an entrepreneur can employ people with those skills to add to one’s abilities. There are interpersonal, marketing, management skills, technical and communication skills you need now or later to help you in business

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Exercise

Answer the following questions: 1. Explain the purpose of identifying your personal attributes and talents; 2. List the personal talents and skills you possess? 3. What personal attributes and talents do you possess that you can rely on in your career as an entrepreneur? 4. What talents and skills needed in business that you do not possess? 5. How would you compensate for these weaknesses?

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Positive thinking described. If an individual has a positive thoughts and attitude towards success in business the mind sets you up in a position to succeed. you will fail and if you expect to win you will win. One’s success is determined by one’s limitations. If one expects to fail.3: POSITIVE THINKING Session Duration: Two Hours Session Rationale What one thinks about somehow transform itself into the physical reality. the trainees will be able to: 1. Entrepreneurial Attributes In entrepreneurship success depends on having a positive outlook. The thinking process explained. 2. 2. Learning Objectives: On completion of this session. Apply the process of positive thinking to an entrepreneurial success Learning Outcomes The learning outcomes are: 1. In entrepreneurship career there are many challenges and risks. 3. The process of positive thinking applied to entrepreneurial success. Explain the thinking process.1. Describe positive thinking. 3.2. A positive outlook emerges from positive thinking. 63 . if one is negative mind success will be hard to achieve.

i. Conscious and subconscious mind.Learner Activities/Environment Learners will define the word “positive thinking”. The Mind Will Attract Everything to Meet Your Goals iii. The Mind will answer All Your Questions Outline through a lecture the process of mind setting Major points to include in the presentation are. The Mind Does not Make Judgments ii. learning outcomes and the learning activities. Main Activities Make a presentation of on the thinking process. Ask Learners how they can apply mind setting to improve the chances of their success in business. Negative and positive thoughts. Points to cover are. Review the results 64 . Learners will propose applications for mind setting to improve the chances of their success in business. The Mind sees No Difference between Real and Unreal vi. Introduction Introduce the session by reviewing the session objectives. Record the main parts of the definitions on the board Draw the attention of the Learners to the fact that entrepreneurship success depends on having a positive outlook 2. ii. Instruct the Learners to present their results. The Mind Understands only Positive Instructions v. Instructional methodology 1. Ask Learners to define the word “positive thinking”. The Mind needs to know that your Goal is Possible iv. i.

1996. Methods Individual Assignment. London. “Positive Action Plan – How to Make Every Day a Success”. 1995. Mathew Sartwell. Organise all the materials needed for the session (Hand outs. The process of positive thinking applied to entrepreneurial success. Piatkus. Group Exercise. Reference Materials: 1. Ask them to state the general conclusions from the lesson. Tutorials. 2. Trainer Tips: You may give the example of the believes on their devotion to reading the bible and regularly attending church services and meetings as another way of mind setting. The thinking process explained. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion.3. Assessment Criteria and methodology: Criteria Positive thinking described. Napoleon Hill’s Keys to Success. Piatkus. Hill Napoleon. London. Flip Chart paper) Prepare an example on the application of known entrepreneur in your area and their known personality that helps the individual solve difficult problems. 65 . Trainer Preparation: Review the materials on Positive Thinking. markers.

The ability to interact socially requires certain attitudes. Make choices.Session Evaluation Collect and analyse the data on the following: i. enthusiastic or dull. Effectiveness of Training Used ii. The Thinking Process The mind has tremendous power that can be used to make your life better. You as a human being you are created with enough resources to be successful in the field of your choice. Mastery of Skills or Subject by Learners LEARNERS HAND OUT Description of positive thinking If you expect to win you will win and conversely if you expect to lose you will lose. Experience emotions The mind is the seat of intelligence and memory. both conscious and subconscious. Usefulness of Positive Thinking to Learners career. Relevance of Training Material to the session iv. It is a matter of your attitude. You are in control. whether you know it or not. The mind is the mental power that enables you and me to: Think. beliefs and knowledge are based on our internal thoughts. You mind can be conditioned to think positively to bring desirable changes to your life. iii. The mind is divided into two parts of activities known as: Conscious Mind. usual frame of mind. Subconscious Mind The conscious mind enables you to: 66 . We can be positive or negative. All of our feelings. Attitudes are part of the abilities. What is an attitude? It is a mental make-up. active or passive.

So.Use numbers in calculations. Automatic reproduction of activities learnt over time (are able to write he word Entrepreneur without looking at spelling in this manual? How Does the Mind Work? Transforming Thoughts into Reality The mind can change thoughts into reality. instead of you spending time worrying use it to create solutions. You remember that one of the functions of the conscious mind is to enable you make decisions and the main function of the subconscious mind is to automatically reproduce any action repeated over time. Before the subconscious mind turns thoughts into reality it first has to receive instructions from your thinking. However. If you think that you will fail you will indeed fail but if you think that you will succeed you will. Make decisions The subconscious mind on the other hand enables: Management of internal organs workings such heartbeat. The Mind Does not Make Judgments The subconscious mind works only after you have given it instructions through your decisions and thinking. The decision making and reproduction of repeated action combined transform thought into reality. it does not judge your thoughts to be bad or good. digestion and blood circulation (touch the wrist – do feel the blood circulation). Reactions to emotional stimulation (do you remember the last time you laughed). If you were worried about something so much have you noticed that that which you were worried about does really happen. Controls muscular movements. Imagination (close your eyes and imagine you own the biggest bank in Zambia). 67 . It is neutral. breathing. Words in speech.

You must have observed that some people are frightened of the lion whether they see it right there or they are told of the story. “I want to be a loafer”. “I don’t want to be a loafer” will be turned into. when a negative instructions of thoughts is sent to the mind it changes it into a positive message. if your question is positive the answer will be positive. ”I want to be a business person”. The Mind Understands only Positive Instructions The mind only recognizes positive language. It will show you how to source for funds. 68 . The Mind needs to know that your Goal is Possible You must convince you subconscious mind that your goal is achievable. you belief you will achieve. If you want to win you will . The Mind will answer All Your Questions The mind has the ability of answer all questions you may ask. your mind will know that it is possible and will guide your actions. Once you are focused on your goal your mind will attract to you every resource you need to meet your goal. For the reasons above you will collect information needed and attract people who can help achieve your goals. behaviour and decisions towards your goal. The removed word is “Don’t”. The Mind Will Attract Everything to Meet Your Goals The mind will gather everything to fulfill your goal whether constructive or destructive. However.The Mind sees No Difference between Real and Unreal The subconscious mind does not tell the difference between reality and imagination. How does the mind change the negative message to a positive one? A negative message like. If you have convinced and committed to the goal. Hen a positive message in thoughts is sent to the subconscious mind it is carried out as it is. and you expect to win.you will think consistently on how you will achieve the goal. If you ask a negative questions the answer will be negative. If you say. However if you expect to lose you will attract al factors that will ensure that you fail. the mind you carry out even when you do not have money.

suppliers. Developing a positive attitude toward life will result in a successful outcome of whatever you do in business. there are befits and their challenges too.The Mind Does not Make Judgements The Mind Will Attract Everything to Meet Your Goals The Mind needs to know that your Goal is Possible The Mind Understands only Positive Instructions The Mind sees No Difference between Real and Unreal The Mind will answer All Your Questions Entrepreneurial Success and Process of Positive Thinking As an entrepreneur you must think positively and positive thinking is communicable. On your mind play around with thoughts of happiness. if you really want to succeed in business few word of advice are handy: Cover you inner dialogue with thought and feelings of happiness. you should do some inner work in the mind. People you will meet and those near you pick your mental moods and are affected accordingly. However. In entrepreneurship. As a person intending to start your won business you have a choice to flood you mind with positive or negative thoughts. your entrepreneurial goal has to be your main mental attitude. To successful apply positive thinking. and you will cause people to like you and want to help you. good health and success. because they enjoy the positive vibrations that your positive mind sends out. 69 . In discussions with employees. customers and advisors use words that suggest scenes of strength. happiness and success in their minds. Positive attitude will also make you take any necessary actions to ensure your entrepreneurial success. strength and success Avoid negative thoughts of losses in business and swap them with constructive happy thoughts. To harvest good results from positive thinking. If you want to reap from positive thinking it is not enough to sparingly say few positive words and spent much of your time crowding your mind with negative thoughts.

Visualise with concentration and belief the pleasant outcome of your plan or action before you prepare or start. The mind can be conditioned to think positively to bring desirable changes to life. The mind is the seat of intelligence and memory. Summary We discussed that all of our feelings. The mind is divided into two parts of activities known as Conscious Mind and Subconscious Mind. both conscious and subconscious. What is positive thinking? 2. beliefs and knowledge are based on our internal thoughts. How can positive thinking help you create a successful enterprise? 70 . Show confidence and self belief in your in your dealings with other people Engage in physical exercise it helps in developing a positive attitude. If you have no power to do anything constructive do not kill yourself wit worries. What are the differences between the conscious and subconscious mind? 3. Exercise Answer the following questions: 1. Disasters in the world wee there and will always be there. Positive attitude can make one take any necessary actions to ensure entrepreneurial success.

innovation. 2. 71 .1. The concepts of imagination. 2. creativity and innovation are the basis of entrepreneurship. innovation and creativity applied to entrepreneurship Learner Activities/Environment Learners will define the terms imagination. Learners will be assigned to complete the assignments on the “Triangles”. Entrepreneurial Attributes Imagination. Describe the concepts of imagination. innovation and creativity to entrepreneurship Learning Outcomes The learning outcomes are: 1. Successful entrepreneurs dream up new ideas that are unique and in an innovative manner create value for a customer. innovation and creativity. New needs will emerge and it will require the exploitation of the entrepreneur to create new solutions. CREATIVITY OF AN ENTREPRENEUR Session Duration: Two Hours Session Rationale Entrepreneurs apply imagination. Session Learning Objectives On completion of this session. innovation and creativity correctly described.4: IMAGINATION.2. creativity and innovation to develop new ideas that are applied to create solutions to problems and opportunities to improve the quality of life. Apply the concepts of imagination. and creativity. INNOVATION. The concepts of imagination. the trainee will be able to: 1.

and creativity. You have a wife and ten children. Main Activities Ask the Learners to complete these assignments: • Scene: You are 20 years older than you are. innovation. learning outcomes and the learning activities. Innovation is the ability to apply new solutions to problems. You have lost your job. The oldest is in grade 11 and the youngest is in grade One. Creativity is the ability to develop new ideas and discover news of looking at problems. creativity and innovation in the success of the entrepreneur 2. You are staying in your four bed roomed house sold to you at low conditions by your previous employers. Explain and give examples of the following: i. Imagination is a mental creation in the mind of ideas and pictures of things that are not real or not heard. Introduction Introduce the session by reviewing the session objectives. smelt or touched ii. Present on the role of imagination. You wife does not work. Ask the Learners to define the terms imagination. seen.Instructional methodology 1. What would you do? Give each group six sticks of matches: Ask each group to make two triangles using the six sticks 72 . iii. All your children are at school. Record the definitions on the board.

markers.Now ask the groups of Learners to make four triangles using the same number of sticks of matches. Ask them to do the following to he product selected. Ask them to state the general conclusions from the lesson. Book. Flip Chart paper) 73 . Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Chair) . Trainer Preparation Review the materials on imagination. innovation and creativity. Organise all the materials needed for the session (Hand outs. Widow. Pen. o Find new way of making it o Can it be adapted to something else? o Can you give a new look? o What would be a substitute? o Can the parts be rearranged? o What would be the opposite? o Can it be combined with something else? o Is there another use for it? o What else can be made from that? o Are there other markets for it? o Can it be reversed? o Can it be duplicated? 3. Shoes. There will be a number of combinations but check to see if they will come up with this combination: • • Ask each group to select one simple consumer item within the room (E. Door.g.

and Small Business Management. Reference Materials 1. Palgrave Macmillan. 2001. The exercise combines art with numbers. Essentials of Entrepreneurship. Pearson International New Jearsey.Buy match sticks or tooth picks for the exercise. Prepare an example on the application of known entrepreneur in your area and their known personality that helps the individual solve difficult problems. Thomas W. The concepts of imagination. Assessment Criteria and methodology Criteria The concepts of imagination. Burn Paul. Scarborough. Trainer Tips In the creation and innovation exercise. Tutorials. New York. Learners will come up with all types of triangle shapes but when you observe keenly you will notice a number of triangles that exceed the required number. Entrepreneurship and Small Business Mathew. 74 . 2. Zimmerer and Norman M.. innovation and creativity correctly described. innovation and creativity applied to entrepreneurship Methods Individual Assignment. 2005. Group Exercise.

smelt or touched. seen. • Create new ways of doing things Creativity is the ability of coming up with new ideas and ways of solving problems and exploiting opportunities. the left and the right sides.Session Evaluation Collect and analyse the data on the following: i. innovation and creativity to Learners career. Effectiveness of Training Used ii. To be creative you need to utilise more of your right side of the brain. You and I can be creative. Innovation and Creativity. It is the brain that is the centre of creative power. The left side of the brain has a job of processing information in a step by step fashion. As an entrepreneur you can apply imagination to: • Generate business ideas. The right side of the brain processes information intuitively all at once relying more on images. • Solve business problems. Relevance of Training Material to the session iv. Usefulness of imagination. Imagination Entrepreneurs use their imagination to create a picture of a successful business delivering useful products and services to customers at a profit." Imagination is a mental creation in the mind of ideas and pictures of things that are not real or not heard. As an entrepreneur you can use the left side to select one business idea and use the right to generate as many ideas as possible. The brain has two sides. iii. You can be creative by: 75 . The term imagination comes from the latin verb imaginari meaning "to picture oneself. All of us have brains. Mastery of Skills or Subject by Learners LEARNERS HAND OUT Description of Imagination.

• New of caring customers. Innovations can be found in the technical and socio-economic field.• • • • • • • • • • Always asking if there is a better way. Thinking a lot to generate a lot of ideas knowing one of them will work. The creations of insurance. • New of packaging a product or service. As an entrepreneur you can bring innovation in the following areas: • New products. email. No matter how nice the innovation is. Innovation Innovation is defining term for entrepreneurs. political. for an innovation to be successful it must be linked to the customer needs. hire purchase. However. Looking at issues from a broad view You can use your creative power to create a new market and a new customer. Innovation can be found in business. • New of marketing the product. Seeing problems as a source of new ideas. Realising that there may be more than one answer to a problem. trade unions are socioeconomic innovation while the cell phone. routine. and technological sectors. Seeing an issue from a different viewpoint. and tradition. • New ways of pricing the product. Challenging custom. Seeing mistakes as lay by to success. and internet are technical innovations. • New ways of storing a product. Taking up ideas. • New ways of making a product. micro finance. social. developing new solutions to solve people’s problems is innovation. Connecting unrelated ideas to a problem to generate innovative solutions. Being thoughtful. 76 . • New ways of selling the product. banking. if it does not meet the customer’s needs then freeze it.

creativity as the ability of coming up with new ideas and ways of solving problems and exploiting opportunities and taking up ideas.Peter F. Exercise Answer the following questions: 1. We examined the how the three abilities can be applied to entrepreneurial success. What can discourage one’s creative power? 3. What are the differences among imagination. Every thing as somebody said is created twice. innovation? 2. Creativity is the ability to generate a number of ideas. Be simple and focussed. Start small. Be dominant in particular field and take leadership. seen. Innovation is the process of creating value for customers by coming up with better products and services Summary In this session we defined imagination as a mental creation in the mind of ideas and pictures of things that are not real or not heard. Innovate for now Look at the financial implications but also get a feedback from suppliers and customers. Drucker a well known expert on Management has suggested a five stage approach to purposeful systematic innovation is follows: • • • • • Start by analysing opportunities within the enterprise. in the mind and in the hands. industry and the external environment. Imagination is the power of the mind to create unreal images and ideas that can be a basis of creation. developing new solutions to solve people’s problems is innovation. smelt or touched. How can one improve creativity? creativity and 77 .

2. 2. Entrepreneurial Attributes Entrepreneurs focus on goal setting.2. 3. Entrepreneur need to know where they are and where they are going. Session Learning Objectives On completion of this session. Develop entrepreneurial goals. Life is a long term journey. Learning Outcomes The learning outcomes are: 1. Goals correctly defined.1. Entrepreneurial goals developed. Explain the importance of goal setting.5 GOAL SETTING Session Duration: Two Hours Session Rationale Successful entrepreneurs need to think in a long term way. start small. Entrepreneurs should reflect on the achievement and challenges over the period. With such a focus. achieve a little at a time and build on the achievement. This enables them to focus one intention until it becomes part of them. 78 . 3. The importance of goal setting explained. entrepreneurs learn to overcome challenges and zoom on what he/she wants to achieve. Entrepreneurs need to have a destination to aim for. Define goals. the trainee will be able to: 1.

Career – What would you like to be in the five years time? ii. activities. Explain the importance of developing a goal in business. specific. Physical status – what physical state of your body do you need? vi. Social status – What type of social relations do you want? v. Social. 2. achievable.what spiritual needs do you want satisfied? 79 . Physical. time and resources to reach each stage towards the goal. Spiritual. Introduction Introduce the session by reviewing the session objectives. Ask Learners to define the word “Goal”. Spiritual . learning outcomes and the learning activities. Family. Learners will in addition answer questions on: aware of what you wanted to achieve in life. Financial Status – how much financial resources would you need? iv. personal reasons for goal. Main Activities Ask each Trainee to set goals by answering the following questions: i. Instructional methodology 1. Financial. Family – what type of family would you want? iii. measurable.Learner Activities/Environment Learners to set goals on Career. realistic and time bound stages towards the goal.

Goal setting process. Select two individuals to present their goals and ask for feedback from the class. realistic and time bound stages towards the goal? iv. When do you start and when do you complete all the activities to achieve the goal? Let each Learner share with two other Learners their goals and justification. Conclusion Ask Learners to key learning points. Were you aware of what you wanted to achieve in life? ii. ask each one of them to answer the following: i. Key Points to note are: i. Flip Chart paper) Trainer Tips The Learners personal goals will differ wildly. Definition of goal. markers. What are the specific. Ask them to state the general conclusions from the lesson. Organise all the materials needed for the session (Hand outs. Encourage those Learners that are shy to develop their goals. What are the personal reasons for wanting to achieve goals? iii.After every Trainee has completed the task. Trainer Preparation Review the materials on goal setting. ii. You must ensure that dominant groups in class do not influence others. achievable. What activities do you need to carry out over period of time and using known resources to reach each stage towards the goal? v. 3. 80 . measurable.

Reference Materials 1. 2. If you know what you want to achieve then you will be able to focus on that goal. The importance of goal setting explained. 81 . Entrepreneurial goals developed. Assessment Criteria and methodology: Criteria Goals correctly defined. Group Exercise. Hill Napoleon. 1995. Mathew Sartwell. Methods Individual Assignment. Setting goals and targets allows you to choose where you want to go in life. Setting your goals will enable you gather information and resources to help you achieve it. Session Evaluation o Collect and analyse the data on the following: Effectiveness of Training Used Usefulness of goal to Learners career. 1996. London. Tutorials. Piatkus. Napoleon Hill’s Keys to Success. London. Relevance of Training Material to the session Mastery of Skills or Subject by Learners LEARNERS HAND OUT Definition of Goals A goal is an aim of what you want to achieve in life over a period of time. Piatkus. Unless you know where you are going anything you do is a waste. “Positive Action Plan – How to Make Every Day a Success”.

achievable. measurable. Goals. How do set Goals? To set goals you must decide what you want to be and have in you life time. You may set goals in the following areas • • • • • • Career – Do you want to be an entrepreneur in a specific sector? Family – what type of family would you want? Financial Status – how much financial resources would you need? Social status – What type of social relations do you want? Physical status – what physical state of your body do you need? Spiritual . • Add to what you already have. 82 . • Create a sense of pride and satisfaction yourself. objectives. Summary A goal is an aim of what you want to achieve in life over a period of time. information and time). • Be imaginative. and activities are positive statements that must be written. We also outlined the steps to achieving the goals. creative and innovative.what spiritual needs to what satisfied? How to Start to Achieve Your Lifetime Goals Once your goals are set.When you set goals it enables you to: • Be aware of what you want to achieve. We looked at advantages of goal setting. The objectives can further be broken into activities over a period of time and using known resources (skills. . realistic and time bound stages called objectives. You must break them into specific. • Improve performance and increase results in whatever you may be doing • Influence others to achieve. We looked at what goals can be set. • Build confidence in yourself • Think positively.

objective. and activity? 2. What are the differences between a goal. How can goal setting facilitate your success in business? 83 .Exercise Answer the following questions: 1.

To transform a vision. Generate a business idea.UNIT A2. It is from the created ideas that bring about opportunity identification. Learning Outcomes The learning outcomes are: 1. the trainee will be able to: 1. 2.1 BUSINESS IDEAS Session Duration: Two Hours Session Rationale Business ideas are the seed of the enterprise development. Describe business ideas. 4. Explain the process of generating business ideas. Business ideas correctly described.2 Develop Business opportunities 2. 2. creativity and innovation process. An entrepreneur’s initial task is to scan the environment and create new business ideas. Entrepreneurial Attributes Entrepreneurs have a vision. 4. Session Learning Objectives On completion of this session. The process of generating business ideas explained. an entrepreneur needs to scan the environment and identify business ideas through imagination. 84 .2. 3. Outline the techniques or business idea generation. 3. The techniques for business idea generation outlined Business ideas generated.

generate twenty ten business ideas applying any of the techniques you presented. creative approach to specifically address a perceived need.Learner Activities/Environment Learners in groups to define the term “business idea”. Ask Learners in groups to define the term “business idea”. Describe the process of generation of ideas: Points to note: i. iv. The steps of generating ideas (scanning the surrounding (environment) and idea generation) ii. Techniques used to generate each business idea. want. Take note if there are similarities and differences. Learners will present the following to plenary: List of ten business ideas. Present the various sources of information for business ideas. Sources of information Instructional methodology 4. the changing and the needs of people. Ability to see the emerging needs of people. learning outcomes and the learning activities. iii. problem or challenge of customers through a profit generation activity Refer to the definition and draw the attention of the Learners to the similarities with your definition. Introduction Introduce the session by reviewing the session objectives. Ask the groups to present their definitions. Scanning the environment assist you to see what is going on. Present the definition of business term by displaying it on the board. 85 . Ask for comments on the definitions. A business idea is a new.

iii. Trainer Tips: Ensure that the twenty business ideas applying any of the techniques you presented are in different sectors. Sources of information Ask the other groups to give a feed back to the group that has presented. Techniques of business idea generation. Key Points to note are: i.v. List of ten business ideas. 86 . Give highlights of the presentations. Present the various techniques to use to identify business ideas. Trainer Preparation: Review the materials on business ideas. Ask them to state the general conclusions from the lesson. Main Activities Form groups of Learners. The learners should present the following to plenary: i. 5. ii. 6. Description of business ideas. markers. Organise all the materials needed for the session (Hand outs. Ask participants to keep the lists of the business ideas since they will be used in the next sessions. Techniques used to generate each business idea. Ask each group to generate twenty business ideas applying any of the techniques you presented. ii. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Flip Chart paper.

The process of generating business ideas explained. Group Exercise. Assessment Criteria and methodology: Criteria Business ideas correctly described. International International New Jearsey. Tutorials. Effectiveness of Training Used ii. Burn Paul. Essentials of Entrepreneurship. 2005.Reference Materials: 1. 2001. iii. Zimmerer and Norman M. Session Evaluation Collect and analyse the data on the following: i. 2. 7. 2001 3. Thomas W.. Entrepreneurship Training Programme for the New Enterprise Creation . Oct. Palgrave Macmillan. and Small Business Management. 8 and 9 India. 09. Mastery of Skills or Subject by Learners 87 . Relevance of Training Material to the session iv. The techniques for business idea generation outlined Business ideas generated Methods Individual Assignment. Scarborough. 01 – Nov. New York. Entrepreneurship and Small Business Mathew.Reading Materials Module – 6. Pearson Development Institute. Usefulness of business ideas to Learners career.

88 . creative approach to specifically address a perceived need. It is a result of your specific thought or concept that arises in your mind.LEARNERS HAND OUT Description of Business Ideas If You want to start a business you need a business idea. timber and non timber forest products. By having a keen interest in what is going on you will be able to see the needs of people emerging. A business idea is a new. Scanning the environment assist you to see what is going on. Growing crops and keeping livestock fro sale is a farming business. Your business idea in any of the three types of business namely: retail. Business ideas come from various sources. There are also businesses that require harvesting natural resources in water and on land such as fish. Selling goods to other people is retail business. want. Digging. collecting and processing minerals is mining. then you are in the service business. Making some things to sell to your customers is manufacturing. When you sell your time. changing and the needs of people. skills and knowledge. Sometimes the list of types of business covers farming and mining. problem or challenge of customers through a profit generation activity. The Process of Generating Business Ideas The process of generating ideas involves two steps namely: scanning the surrounding (environment) and idea generation. manufacturing and services. The commonest source is the need of the members of the community that is not yet satisfied.

function. 4. 7. Written Books. Newspapers. Technique 1. Personal and Informal Family member. make it simpler. There a number of methods you can use to generate business ideas.Scanning the environment involves collecting information from various sources. Oral Trade Shows. Personal and Formal Bankers. 3. change the shape. Travel Come back with something you saw or used not available in you area Listen to complaints Crate a solution to a complaint 89 . Posters 4. No. Professional Organisations The Techniques for Business Idea Generation There a number of ways you can generate ideas. 6. Researchers. Make Use of Your Experience 3. Category of Sources Information Sources 1. Employees. Improve services Offer a better service of the current services you pay for Improve a product Improve its appearance. Journals. packaging and so on Modify an existing Make it look luxurious. Investment Centre. Explanation Covert your skills into a business You have been able to do something for a long time. Industry and Trade Contacts Magazines. Seminars. Bill Boards. Sales Persons. colour. Business Associations. or product into a new one make it smaller. Newsletters. These sources are: No. 5. Catalogues. Draw on Your Skills 2. Councils. 8. Can you advise others in the same field at a fee? Use You Hobby Do you like music? Set up a music store. Commercial Exhibitions. Suppliers/Agents. Friends. Consultants. Business Registration Office. 2. Customers.

touch and smell.9. Research Find out special needs of certain groups of customers 10. if it is for very one make it for one person. The list will be determined by how much you use your imagination. Create new value for a Use taxi vehicle for advertising product 12. Selling cooking oil from a pump 18. if it is slow make it fast. Commercialise Turn research ideas from research institutions research into business recommendations and inventions 15. 90 . Reproduce the idea Apply a successful idea to new settings 11. You will be able to come up with other methods are you listen. if it is long make it short. Somebody’s waste is Turn waste into something useful for someone. Creation of opposites If a product is small make it big. Timeframing Offer the same service in a short time 19. Combine uses into one Create a pen with functions of a musical product instrument 16. Visualisation Create a picture of a business in your mind 17. see. The list of methods of generating ideas does not end there. another person’s Treasure 13. if it is tall make it short n advice versa. Brainstorm Generate as many ideas as possible without checking the usefulness one may turn out to be a gold mine 14. Technology application Technological developments these days are so fast and abundant that one can come up with so many ideas of unique applications 20. Adding or Subtracting Add or subtract a few features to the product or service to make it suitable in terms of use or price.

the size and type of the business. weakness. A look at the environment will also suggest to you whether the business idea is good or not. or travelling. You may be lying on bed. The business idea you choose will be influenced by your strengths. or any other activity you may be doing. It will be helpful to you if you select a business idea in the area you are familiar with and have knowledge and skills that will either find immediate application or balance the skills of the others in the business. Before you go to the marketplace. washing. start with yourself. Buy a note book. likes and dislikes. At this stage. Selecting a business idea is not a matter of wishful thinking or simple fantasising. do not worry about how good or silly the idea is: you will be surprised how good the idea was in later days or years. at a social gathering. working. Make very day an exciting creative day.Generation of Business Ideas Once you start thinking you will be generate hundreds of ideas. in class. research institution or business associations to look for business ideas. You should build on your strengths and work on your weaknesses. Write down quickly as the business idea come to you mind. Write all the ideas that come into your mind in the notebook. You can use the scoring suggested below. Every person has strong points and weak ones. Where do you go from there? Having prepared a reasonable list of ideas you must examine each business idea so that you end up with a short list of business ideas with the highest chance of success. The tradition of keeping all the ideas in your head is not useful. Let your mind zero in on the business possibilities are your senses bring in all the information. 91 . Selecting the Business Ideas It is promising that you have a list of the business ideas. Within a few hours or days you should produce an encouraging list of business ideas. You should look at your strengths and weaknesses which will show the areas suitable for business ideas.

Simple Scoring Method for Business Ideas. Business Idea Assessment Form Name of the Business Idea: No. Knowledge skills Experience and You have knowledge and skills that will help you run this type of business? You have experience that will help you to run this business? No Score 3. 5. Score: Yes = 1 and No = 0. Business You know about the products Knowledge and services in this business? Business Support You know where to get advice and information about this business Customers You are knowledgeable of the potential customers for this particular business? Competition This will be the only business of this kind in your area? Profitability You have reasons why you think this business will be profitable? Human You know the type of Resources. Allocate scores to each question. 7. materials premises Premises. 4. Focus Question Yes 1. 6. 9. Personal The business suits your characteristics personal characteristics? 2. If the answers to all the questions is YES the total score is 12 and 0 if all your answers were No. You may select a business idea if it scores above 5 and review it or reject it if it scores below 5. or qualified staff required for Equipment and this business? Materials 92 . 8. equipment.

developing and planning. Resources 12. We described scanning that it involves collecting information from various sources environment.10. We outlined the process of generating ideas that it involves two steps namely: scanning the surrounding (environment) and idea generation. creative approach to specifically address a perceived need. Exercise Answer the following questions: 1. Business Growth TOTAL SCORE You are sure you will be able to get the finances to provide what is needed in the business? You know where will you get the resources to start this type of business You know this business has potential for growth? After the business ideas identification. 4. researching. Finances 11. Summary We defined a business idea is a new. listing and assessment you are now ready to go further to develop this business idea into business opportunities through spending time assessing. The Business Idea Assessment Form was introduced as a screening mechanism to select ideas. Twenty techniques or methods one can use to generate business ideas were outlined. 3. What is a business idea? What is environmental scanning? Outline three methods for generating business ideas? Describe how you can select a business idea from long list of other ideas? 93 . problem or challenge of customers through a profit generation activity. 2. want.

3. Session Learning Objectives On completion of this session.2 ENVIRONMENTAL SCANNING Session Duration: Two Hours Session Rationale All businesses operate in an environment. 5. 4. Explain the techniques of environmental scanning Outline the process of environmental scanning. Entrepreneurial Attributes One of he traits of an entrepreneur is information seeking. Understanding the environment will reduce the uncertainties and provides evidence for opportunities. the trainee will be able to: 1. Describe the concept of environmental scanning.2. There are people. 2. Discuss the importance environmental scanning.2. Carry out an environmental scan Learning Outcomes 94 . natural resources and organisations in the environment. Scanning enables the entrepreneur get hold of information to understand the situation very well and systematically reach a decision.

BPEST Analysis. Identify common and differences in the groups’ presentations. Each group will be assigned two scanning methods (at least the BPEST and the other method is randomly allocated) to scan the environment on the basis of two business ideas selected from their business idea lists. Write their responses on the board. Learner Activities/Environment Learners will define the word “environmental scanning. 2. 95 . SWOT analysis. In groups of two. Main Activities Present and give examples of the following scanning techniques: i. The concept of environmental scanning described. iv. Porters Five Force Model. Refer the learners to the session on business idea generation. Refine the definitions until it makes sense to almost everyone. 4. Introduction Introduce the session by reviewing the session objectives. iii. ask the Learners to explain why scanning is important in entrepreneurship. Instructional methodology 7. ii. 8. 5. Write the response on the board. Discuss the common areas and the different perceptions. learning outcomes and the learning activities. 3. Value Chain Analysis Explain the process of environmental scanning. An environmental scan carried out. Ask Learners to define the word “environmental scanning”. The importance environmental scanning discussed.The learning outcomes are: 1. The techniques of environmental scanning explained The process of environmental scanning outlined.

concept of environmental scanning. Key Points to note are: i. ii. Trainer Tips: You may be required to collect annual reports or economic bulletins for Learners references.Assign each group two scanning method (at least the BPEST and the other method is randomly allocated) to scan the environment on the basis of two business ideas selected from their lists. Value Chain Analysis Organise logistics for learners to go in the field to collect information for scanning. Ask each group to present their results for review in plenary. iv. Flip Chart paper) Prepare examples on: i. iii. Conclusion Ask Learners to identify learning points that emerged from the session Ask them to state the general conclusions from the lesson. iii. Guide each group on the application of the scanning methods. Trainer Preparation: Review the materials on environmental scanning. process of environmental scanning. ii. SWOT analysis. 96 . BPEST Analysis. markers. Review the presentations 9. Organise all the materials needed for the session (Hand outs. Porters Five Force Model. importance environmental scanning.

Usefulness of environmental scanning to Learners career. Mastery of Skills or Subject by Learners 97 . Tutorials. Scarborough. The techniques of environmental scanning explained The process of environmental scanning outlined.Reference Materials: 4. Essentials of Entrepreneurship. iii. Group Exercise. Zimmerer and Norman M. Session Evaluation Collect and analyse the data on the following: i. Thomas W. The importance environmental scanning discussed. Effectiveness of Training Used ii. Pearson International. Assessment Criteria and methodology: Criteria The concept of environmental scanning described. 1995 5. Methods Individual Assignment. London. Mathew Sartwell. Napoleon Hill’s Keys to Success. Piatkus. Relevance of Training Material to the session iv. An environmental scan carried out.

Environmental scanning is important for these reasons: 98 .LEARNERS HAND OUT Description of Environmental Scanning Now that you have identified one business idea you want to develop you must understand that your business will operate in an environment. External Influences of the Environment Industry Government Customers Labour market Suppliers Your business Technology Competitors Private individuals National Bodies Creditors The Importance of Environmental Scanning. technological. The other term for the environment is surroundings. The business you want to start will operate in a complex environment of business. social and political influences. Scanning is checking or examining. economic. Understanding the surroundings will reduce the uncertainties.

Economic. situations. cultural. and events in the country and outside that may have an effect on your business Identify the potential opportunities and threats for the business arising from these trends. and political trends. The acronym stands for the Business Political. social. and events Achieve an accurate understanding of your business’s strengths and weaknesses Present a support for study of future opportunities Techniques of Environmental Scanning There are a number of techniques you can use to carry out an environmental assessment. This module will cover the following techniques: BPEST Analysis.Spot important economic. health. it must be followed up by consideration of how a business should respond to these influences. situations. The table below lists some possible factors that could indicate important environmental influences for a business under the PEST headings: 99 . environmental. Identifying BPEST influences is a useful way of summarising the external environment in which a training institution operates. Value Chain Analysis BPEST Analysis BPEST analysis is concerned with the environmental influences on a business. Social and Technological issues that could affect the strategic development of a business. However. technological. Porters Five Force Model. SWOT analysis.

technology Alternatives (minimum wage. New products Government .Monetary policy Government current and (corporate. gender.Labour / New spending (overall social mobility discoveries and level.Consumer .Policy towards Lifestyle Speed Reliability. Home working. by distribution spending on known or regulation industry sector) (change in research projected and distribution of protection disposable income.Economic growth Income Government industry Environmental (overall.BPEST Business Political Legal / Economic Social Technological Sate of . trade New regulation comers. specific development spending priorities) Suppliers: . transfer unemployment benefits. protection unemployment changes (e.g. (interest rates) Demographics and industry projected consumer) (age structure focus on demand. of the technological Buyer population. grants) single households) of 100 . family size and composition. effort behaviour. changing nature of occupations) Competition: Market International share. Market: Taxation .

Attitudes to Rates of on consumer work and technological disposable income. effect on cost of imported components) .Energy and costs use Business Associations Government organisation / attitude Competition regulation .Education (effects on demand by overseas customers. pollution) Porters Five Force Model Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analysing the competitive strength and position of a corporation or business organization Five competitive forces influence the level of competition in an industry which finally will have a say on the level of profit in a particular industry.Ban Fund Donor Funds Employment law . leisure obsolescence incentives to invest in capital equipment.Changes on costs and selling fads material prices) sciences . corporation tax rates) . 101 .Taxation (impact .Stage of the .Inflation (effect .Economic "mood" Living consumer conditions confidence (housing.Impact of changes in Information technology . amenities.Health business cycle welfare (effect on shortterm business performance) in & .Fashions and .Exchange rates .

The rivalry of current competitors – the higher the rivalry the likely possibility of lowering prices and high investment in marketing to beat competition which may results in low profitability 102 . Meeting this want may result in the lowering of profitability. The threat of substitute products or services.The competitive forces are: The threat of new entrants to the industry.customers want better products at lower prices. The bargaining power of customers . The bargain power of suppliers The rivalry of current competitors The threat of new entrants to the industry – a new entrant into an industry will bring extra capacity and more competition The threat of substitute products or services – a substitute product or service produced by another industry satisfying the same needs of he customers. The bargain power of suppliers – suppliers can apply force to obtain higher prices for their products and services. The bargaining power of customers.

SWOT Analysis is a common strategic planning tool developed to compare internal strengths and weakness with the external opportunities and Threats.Threats 103 .the threat Suppliers – bargaining power of suppliers Industry Competitors Rivalry Customers – bargaining power of customers Substitute Products – the treat of substitute products SWOT analysis Strengths/weaknesses of the organisation are related to the opportunities and threats of the environmental helps to identify how the current resources and capacity of the Organisation manage the situation in the environment.Weaknesses. T. O . S.Strengths. W .Porter Five Forces of Competition Diagram New Market Entrants .Opportunities.

Avoid complications and too much analysis SWOT is subjective. better than or worse than your competition. Be realistic about the strengths and weaknesses of your business when conducting SWOT analysis.e.Sample SWOT analysis STRENGTHS o Good traditions and image o Effective decision making o Strong leadership o Committed and caring staff o Qualified and experienced staff o Office equipment is available o Availability of transport WEAKNESSES Insufficient financial resources Lack of management systems and policies Unclear communications and linkages Too reliant on donor funding Lack own premises Lack of finances Uncommitted staff THREATS OPPORTUNITIES Cause related organisations are trendy Ageing population will increase clients and More opportunities for collaboration in Current era of partnership networks • • • Increasing competition for resources with similar organisations Government trend toward privatisation of public services law suits in courts Simple rules for successful SWOT analysis. Keep your SWOT short and simple. and where it could be in the future. SWOT analysis should differentiate between where your business is today. Avoid vague areas. SWOT should always be specific. Always apply SWOT in relation to your competition i. 104 .

human resource management). Michael Porter suggested that the activities of a business could be grouped under two headings: (1) Primary Activities . for example mealie meal. maize and turning it into something that customers are prepared to pay money. The Value Chain Analysis helps you identify the ways in which you create value for your customers. and (2) Support Activities.g. as well as your best route to profit maximization.those that are directly concerned with creating and delivering a product (e. component assembly). may increase effectiveness or efficiency (e. In business. In manufacturing. which whilst they are not directly involved in production. and to “add value” to them by turning them into something of worth to other people. where people use inputs of time. and then helps you think through how you can maximize this value: whether through nice products or useful services. This idea is also important in service industries such as training. Value Chain Analysis is one way of identifying which activities are best undertaken by a business and which are best provided by others ("out sourced"). customer pay you to take raw inputs.the customer in this case the learner. equipment and systems to create services of real value to the person being served . where the manufacturer adds value by taking raw material of little use to the customer (house wife/husband) for example. knowledge.g. 105 . It is rare for a business to undertake all primary and support activities.Value Chain Analysis Value Chain Analysis is tool for working out how you can create the greatest possible value for your customers.

activities concerned with recruiting.All activities dealing with receiving and storing externally obtained materials Operations .. or a reduction in the total amount of resources used.the way in which resource inputs (e.All activities connected to getting finished goods and services to buyers Marketing and sales . use. sourcing and negotiating with materials suppliers) Human Resource Management .g.g. price etc. motivating and rewarding the workforce of a business Technology Development .activities involved with informing buyers and consumers about products and services (benefits.) Service . products) Outbound logistics . Primary Activities are as follows: Inbound logistics . For example.Linking Value Chain Analysis to Competitive Advantage What activities a business undertakes is directly linked to achieving competitive advantage.All activities related to maintaining product performance after the product has been sold Support Activities are as follows: Procurement -This covers how resources are acquired for a business (e.The manufacture of products and services . developing. materials) are converted to outputs (e.g.Concerned with a wide range of support systems and functions such as finance. quality control and general senior management 106 . a strategy based on seeking cost leadership will require a reduction in the costs associated with the value chain activities. By contrast. a business which wishes to outperform its competitors through differentiating itself through higher quality will have to perform its value chain activities better than the opposition. planning.activities concerned with managing information processing and the development and protection of "knowledge" in a business Infrastructure .

or identify current activities where a business appears to be at a competitive disadvantage. legal frame work. Decide who will collect information. technologies and social issues. Identify who is responsible for the process. Identify methods of collecting information. Assemble the information. (2) Examine the potential for adding value via cost advantage or differentiation.Steps in Value Chain Analysis Value chain analysis can be broken down into a three orderly steps: (1) Break down a market/organisation into its key activities under each of the major headings (primary or secondary. Analyse and translate the information into actionable Carrying Out an Environmental Scan Carrying out the environmental assessment will assist you identify a number of issues in the natural environment. Identify the sources of information. Steps to conducting the environmental scanning: Clearly state the purpose of collecting information Decide on how the information will be collected desk or field study or both. Reflect on the strengths and limitations of that information including. the business scene. (3) Develop strategies built around focusing on activities where competitive advantage can be sustained Process of Environmental Scanning. detect emerging issues. Select data gathering techniques to fill in information or audience gaps. Assemble existing information on issues and needs. 107 . target market and competition. and verify existing information Collect scanning information from other organizations. human resources.

and political trends. and Value Chain Analysis 108 . Porters Five Force Model. Describe the environmental scanning techniques namely: BPEST Analysis. environmental. identify the potential opportunities and threats for the business arising from these trends. economic. health. We indicated that environmental scanning can assist in spotting important economic. social and political influences. and events in the country and outside that may have an effect on your business. and events.Summary We discussed that businesses operate in a complex environment of business. situations. Porters Five Force Model. and Value Chain Analysis Exercise Answer the following questions: 1. social. and present a support for study of future opportunities. Mention five influences in the environment that may affect business operations. Lastly we described environmental scanning techniques namely: BPEST Analysis. cultural. situations. SWOT analysis. technological. SWOT analysis. technological. 2. achieve an accurate understanding of business’s strengths and weaknesses.

2. 2. Learning Outcomes The learning outcomes are: 1.2. Session Learning Objectives On completion of this session. The tendency of sensing a business opportunity and immediately pour resources into it to start an enterprise without thorough investigation results in disastrous results and great waste. Feasibility study as a concept described. Feasibility study enables entrepreneurs reduce uncertainties and build confidence in the business opportunity. 3. Outline the process of feasibility study. Entrepreneurial Attributes An entrepreneur is a risk taker. The process of feasibility study is outlined. 3. A feasibility study is carried out.2.3 FEASIBILITY STUDY Session Duration: Two Hours Session Rationale Feasibility study is the assessment of the market. 109 . Learners to conduct feasibility study. and financial situation of the proposed business to ascertain its viability and practicability. the trainee will be able to: 1. technical. Describe feasibility study. Learner Activities/Environment Learners will describe the word “feasibility study. Carry out a feasibility study.

succession plans. experience. copyrights. and job description. sources of human resources. Health.Board of directors. production facilities. viii. Customers and Competition Production Assessment – method of production and .key suppliers? Credit Policies Assessment – credit sales. Introduction Introduce the session by reviewing the session objectives.location qualities. vii. space amount. learning outcomes and the learning activities.Instructional methodology 1. zoning or building code requirements. 110 . location physical requirements. Professional and Advisory Support Assessment .Total market current demand. vi. v. Market Assessment . Insurance coverage and Trademarks. skilled staff. entry barriers. or patents Human Resource Assessment – employment numbers. Make a presentation of the various assessment that make up a feasibility study Areas to emphasise are i. or environmental regulations. credit terms. power and other utilities availability Legal Environment Assessment . Record the main parts of the definitions on the board Outline the steps in conducting a feasibility study. Management advisory board. Location Assessment .Licensing (Permits. competences. workplace. Environmental Change. procedures. and discounts Management and Organization Assessment – business management. Lawyer. ii. iv. growth potential. Ask Learners to describe the word “feasibility study”. Suppliers Assessment . organisational chart. target market trend. human resources development plans. iii. ix. industry special regulations. building type. Product.

ix. How will you manage credit sales? – credit sales. Ask them to state the general conclusions from the lesson. How do we know that the business is profitable? Allow each Team to present their response. x. Organise all the materials needed for the session (Hand outs. Internal Rate of Return and Break Even Point 2. and 3. Flip Chart paper) Prepare a Table for the feasibility study questions. and discounts viii. credit terms. What is the size of the market? ii. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Investment Assessment Techniques – Net Present Value. Banker. What is the size and quality of your proposed? vi. Main Activities Form Enterprise Teams in class (Three or Five individuals per Enterprise Team). Consultant or consultants and key advisors. Trainer Preparation: Review the materials on feasibility study. markers. Insurance agent. 111 .Accountant. Assign the Enterprise Teams to answer the following questions: i. What is the strength of your management organization?. Who will give you technical and managerial support? x. How will you produce the product or service? iii. Who are your key suppliers? vii. Guide the Learner on the quality of the responses. How do you do the business meets legal requirements? v. To what extent is the location suitable for you business iv. Review the responses.

Reference Materials 1. Make it simple. 1997. New York. The feasibility study outlines and analyzes several alternatives or methods of achieving business success. Methods Individual Assignment. 2001. Session Evaluation Collect and analyze the data on the following: Effectiveness of Training Used Usefulness of feasibility study to Learners career. 112 . Burn Paul. Cole G A. The decision is either to go ahead with the business proposition or look around for other exciting prospects. Assessment Criteria and methodology: Criteria Feasibility study as a concept described. The process of feasibility study is outlined. Strategic Management. Tutorials. Letts Educational. Group Exercise. Your focus is to assist the Learners develop a criteria for making a decision. Palgrave Macmillan. Entrepreneurship and Small Business Mathew. The feasibility study aims at answering your question of “should I continue with the proposed business idea?” All the feasibility activities are aimed at answering this question.Trainer Tips Feasibility studies can be complex assignments. London. A feasibility study is carried out. 2. Relevance of Training Material to the session Mastery of Skills or Subject by Learners LEARNERS HAND OUT Description of Feasibility Study Feasibility study is an examination to see whether your business idea is viable or practical.

Casual observations. The business idea can be a new start-up business. Growth potential and opportunity for a business of your size. trends in consumer preferences. remain viable in the long-term and meet your entrepreneurial goals. Trends in target market—growth trends. an expansion of current business operations. withstand the risks it will encounter. discussing with other people indicate that it is a good business idea. and trends in product development.A feasible business is one where the business will generate adequate cashflow and profits. What barriers to entry do you face in entering this market with your new company? Some typical barriers are: o High capital costs o High production costs o High marketing costs o Consumer acceptance and brand recognition o Training and skills o Unique technology and patents o Unions o Transport costs How will you overcome the barriers? How could the following affect your company? o Change in technology o Change in government regulations o Change in the economy 113 . the purchase of an existing business. Conducting a Feasibility Study You have in your hands a business idea that you like. Once you have carried out a feasibility study then you can proceed to write a business plan. You conduct the feasibility study before preparing the business plan. or a new enterprise for an existing business. You could good further by reading more about it but can it work? Market Assessment Find out the following: What is the total size of your market? What percent share of the market will you have? Current demand in target market.

technology. otherwise known as their demographics? o Age o Gender o Location o Income level o Social class and occupation o Education o Other (specific to your industry) o Other (specific to your industry) For business customers. what will the product do for the customer? Customers Who are your targeted customers. and price preferences o Other (specific to your industry) o Other (specific to your industry) Competition What products and companies will compete with you? Will they compete with you across the board. or in certain locations? Will you have important indirect competitors? How will your products or services compare with the competition? Production Assessment How and where are your products or services produced? What are the methods of: o Production techniques and costs o Quality control o Customer service 114 . their characteristics. or just for certain products. and their geographic locations.o Change in your industry Product What are the most important features? What is special about it? What are the benefits? That is. the demographic factors might be: Industry (or portion of an industry) o Location o Size of firm o Quality. certain customers.

how much credit and when is payment due? 115 . or patents (pending. or environmental regulations o Special regulations covering your industry or profession o Zoning or building code requirements o Insurance coverage o Trademarks. or purchased) Human Resource Assessment Will you be able to engage the number of employees needed? Are the skilled staff and professional you need available? Do you know where and how will you find the right employees? Will you be able to meet the pay structure Have you developed a human resource development plan? Do you have schedules and written procedures prepared? Have you drafted job descriptions for employees? Suppliers Assessment Have you identified key suppliers? Credit Policies Assessment Do you plan to sell on credit? What terms will you offer your customers. that is. existing. copyrights.o Inventory control o Product development Location Assessment What qualities do you need in a location? Is the location you need available? What are the physical requirements: Is the amount of space needed available? Is the type of building you need available at a reasonable cots? Is power and other utilities like water available? Legal Environment Assessment Are you able to meet the conditions fro the following: o Licensing o Permits o Health. workplace.

and generates an annual cash inflow of K 12.000.Will you offer prompt payment discounts? Management and Organization Assessment Who will manage the business on a day-to-day basis? What experience does that person bring to the business? What special or distinctive competencies do the individuals need to have? Is there a plan for continuation of the business if this person is lost or incapacitated? If you’ll have more than 10 employees. 116 . 000. have you created an organizational chart showing the management hierarchy and who is responsible for key functions. 500. 000. Payback period = Cash investment/annual cash inflow A business project requires an investment of K 50. the payback period can be computed dividing cash outlay by the annual cash inflow. 000/12. 500. Professional and Advisory Support Assessment Do you intend to have the following in enterprise? o Board of directors o Management advisory board o Attorney o Accountant o Insurance agent o Banker o Consultant or consultants o Mentors and key advisors Investment Assessment Techniques Payment Period The number of years required to recover the original cash outlay invested in a business project. 000 = 4 years. The payback period is as follows: Payback period = 50. If a business generates constant annual cash inflows. 000.

000 25.751 4 6. Net Present Value Year Cash Inflow Discounting (ZK) Factor at 10 % 1 9. 000.000 .000 and is expected to generate cash of K 8000000. K 7000000.000.000 . 000.200. 000.683 5 5. 000 and 5. 7. What is the IRR? 117 . and K 6000000 over a three year period. 000 Internal Rate of Return IRR is the rate which equates the present value of cash inflows with the present value of cash outflows of an investment. 000. A business project costs initially K 25.000 .000.000 . 000. The required rate of return is 10%. Example A project costs K 16. 000.620 Total Present Value Cash Inflow Less Investment (Initial Capital Expenditure) Net Present Value Present Value of Cash Inflow(ZK) 818 661 526 410 310 27.000. 000 and generates year end cash inflows of 9. 6. 000. It is the rate at which the NPV is zero. 000.826 3 7.Net Present Value The method is a process of calculating the present value of cash inflows and outflows of an investment proposal using the cost of capital as the suitable discounting rate and finding the net present value by subtracting the present value of cash outflow from the present value of cash inflows. 250.000.000. 000 from one year to five years.909 2 8.000 .

Method Acceptance Rule 1 Payback Period Accept business project if the payback period is shorter than one set up by management 2 Net Present Value Accept a business project if the present value of cash inflows over a number of year is positive 3 Internal Rate of Return Accept business project if the internal rate of 118 .200.000 -257.756 5292000 3 6000000 .847 6.000 16.456. Present value 6.000 Less cash outlay 16.658 3948000 Total Discounted cash inflows 16. 16%.000 .000 .000 4.016.862 6896000 .200.000.000 .996.200.00 16.050.609 3846000 .383.579 Total Discounted cash inflows Less cash outlay NPV (. So lets us try to calculate the Present value at15% Year Cash Inflow Discount Factor @ 15% Present Value 1 8000000 .000.877 7.000 NPV 0 Acceptance Rules No.776.000 NPV -744.000 3.000 .000 Less cash outflow 16.858.675 4. and 14% Discount Rate Discount Present DF PV DF@14% PV Year Cash Inflows Factor Value @ (18%) 16% 1 8.000 16.000 15.718 5201000 .200.200.000 +249.000 .833 2 7.000.000.000 .000 .Cash Inflows Present Value at 20% Discount Rate Year Cash Inflows Discount factor at 20% 1 8.000.026.449.870 6960000 2 7000000 . we try at a lower rate.) Note this is a higher rate.000 1.204.000 .474.000 Cash Inflows Present Values at 18%.000 14.000 2 7.769 5.718 5.694 3 6.000.943.000 .664.654.000 3.000 3 6.609 Total PV 15.000 16.000 The rate we are looking for lies between 14% and 16%.200.

A feasibility study looks at market. remain viable in the long-term and meet your entrepreneurial goals. Exercise Answer the following questions: 1. Describe feasibility study? 2. technical. withstand the risks it will encounter. financial and managerial feasibility. financial and managerial feasibility? 3. A number of assessment tools are used. technical. Describe the financial feasibility study methods 119 .return is higher than or equal to the cost of capital Summary Feasibility study is an examination to see whether your business idea is viable or practical. A feasible business is one where the business will generate adequate cash-flow and profits. Mention one area that is useful to assess market.

UNIT A2. Define the term business opportunity. 4. A bruises opportunity personifies the entrepreneur and motivates the mobilization of resources to start an enterprise.. 6. Business opportunity selection criteria is developed. Differentiate between a business idea and business opportunity. identified and selected a business opportunity. Develop business opportunities selection criteria. 2. 2. The term business opportunity is correctly defined. Entrepreneurial Attributes One cannot call oneself an entrepreneur until they have successfully pursued.4 BUSINESS OPPORTUNITIES Session Duration: Two Hours Session Rationale An opportunity is a foundation for establishing of a business for an entrepreneur.3 Mobilising Resources for an Enterprise 2. Relate the business opportunities to entrepreneurial activities. A business opportunity selected. 5. 3.2. Select business opportunities. Learning Outcomes The learning outcomes are: 1. 120 . the trainee will be able to: 1. Sources of business opportunities are identified. 3. 4. Identify sources of business opportunity. The ability to spot opportunities and innovate differentiates entrepreneurs from ordinary employees Session Learning Objectives On completion of this session.

Introduction Introduce the session by reviewing the session objectives. Main Activities Ask the Enterprise Teams to refer to their business ideas. Present a lecture on the main sources of business opportunities. Display your definition on the board. 6. Ask the Learners to record the definitions on pieces of A4 paper and stick the definitions on the wall. Illustrate the business selection criteria (Refer to the examples in the sessions on scanning and financial assessment in the feasibility study. The business idea and business opportunity are differentiated. Instructional methodology 4. 5. Learners in groups will select one business opportunity after applying the selection criteria. Introduce the business opportunity criteria. Ask all the participants to identify one aspect of the definitions on the wall that relates to the definition given n the board. Assign the Learners to scan the environment and conduct a feasibility study on the business ideas corresponding to the number of members in the team.5. learning outcomes and the learning activities. Business opportunities selection is related to entrepreneurial activities. Learner Activities/Environment Learners will define the word “business opportunity. Learners will present their business opportunities selections and the reasons for the decision. A business opportunity is an attractive business idea which an entrepreneur has selected to invest his/her resources to create value on the basis of assumptions of favourable market need and profit. 121 . Ask Learners to define the word “business opportunity”.

122 . Palgrave Macmillan. Scarborough. Mastering Enterprise. New York. Trainer Preparation Review the materials on Business Opportunity.Ask the Learners to select one business opportunity after applying the selection criteria. 2001. A business opportunity selected. 09. 2. International International New Jearsey.. List the differences between a business opportunity and business idea. Ask them to state the general conclusions from the lesson. Ask the Learners to present their selections and the reasons for the decision. Zimmerer and Norman M. 2005. 01 – Nov. Organise all the materials needed for the session (Hand outs. markers. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Business opportunity selection criteria is developed. Oct. 7. . Entrepreneurship Training Programme for the New Enterprise Creation .Birley Sue and Muzyka Daniel. Essentials of Entrepreneurship. 4. 2001 3. Pearson Professional. Pearson Development Institute.Reading Materials Module – 6. Flip Chart paper) Trainer Tips: Ensure that the business opportunities selected are in different sectors. 8 and 9 India. and Small Business Management. Thomas W. Sources of business opportunities are identified. Burn Paul. 1997 Assessment Criteria and methodology: Criteria The term business opportunity is correctly defined. Reference Materials: 1. 6. Entrepreneurship and Small Business Mathew. London.

trading and business activities in te are and the trends for new demands of goods and services. Effectiveness of Training Used ii. knowledge. Sources of Business Opportunity. An entrepreneur’s first task after assessing himself/herself is to identify and select an attractive business opportunity. iii. Usefulness of business opportunities to Learners career.occupational pattern. Business opportunities can be sourced from: The Environment – the natural resource base of an area. Tutorials. Session Evaluation Collect and analyse the data on the following: i. You need to be focused and quite serious in you effort of identifying business opportunities. Capability of an entrepreneur. agriculture. Target market – expectations of the target group in terms of their skills. A business opportunity is an attractive business idea which an entrepreneur has selected to invest his/her resources to create value on the basis of assumptions of favourable market need and profit. Current business Situation. Resources . An acceptable business opportunity is a combination of: Confirmed need in the community. Population . Group Exercise.Business opportunities selection is related to entrepreneurial activities. Relevance of Training Material to the session iv. Methods Individual Assignment. and financial resources. marine and other natural resources Business Opportunities Selection Criteria. socio economic background. The business idea and business opportunity are differentiated. 123 . Mastery of Skills or Subject by Learners LEARNERS HAND OUT Defining Business Opportunity.industries based on minerals.

Availability of resources to develop the business opportunity.

The Existence of Needs in the Community
A good idea is a good seed fro a business opportunity. Growing the idea into a business opportunity requires confirming that what ever is proposed fro production must have a market need. If the need is already confirmed fro you then it cuts down on your costs. If not, you are required to carry out an environmental scan.

Entrepreneur’s Capability
You as an entrepreneur have certain level of knowledge, skills, values, experience and assorted traits. It is obvious certain business opportunities will suit your personality others will not. It is obvious that you need to match given business opportunities with your personality profile.

Availability of Resources
To develop a business idea into a business opportunity you will need resources. The resources needed may be special skills, technology, raw materials, infrastructure and finance. Selection of Business Opportunities You can apply the results of the scanning and feasibility to identify to select the business that is presents the most attractive option. Focus Scanning Method BPEST Expected Results Business, political, economic and technological trends are good Porters Five Isolate competitive forces Competitive Force Model that influence the level of strength and competition in an industry position of a business in the market is favourable SWOT Identify how the current Business capacity is Application Identification of external issues that may affect the business operations

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Value Chain

resources and capacity of the business can manage the situation in the environment Assesses how you can create the greatest possible value for your customers, as well as your best route to profit maximization

high

Developed strategies focusing on activities where competitive advantage can be sustained.

Feasibility Payment Period Study

Calculating the number of years required to recover the original cash outlay invested in a business project

Net Value

Present Finding the net present value by subtracting the present value of cash outflow from the present value of cash inflows.

Internal Rate of Finding the rate which Return equates the present value of cash inflows with the present value of cash outflows of an investment.

Selection of a project based on the number of years required to recover the original cash outlay invested in a business project being lower that the set period Net present value of the results of subtracting the present value of cash outflow from the present value of cash inflows. Rate which equates the present value of cash inflows with the present value of cash outflows of an investment.

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Decision Making This is the most critical step in the entire business development process. In a sense it is the point of no return. Once you start to establish a business, it is difficult to turn back otherwise you waste resources. If you have doubts or fears about the business, you should not go ahead. Be open, honest and discuss this matter before you make the decision. Commitment to the business idea is another important reason to look at before you continue. Avoid underestimate the time and effort you need to start a business. A financial commitment by you at this time and others is an important sign of dedication to establishing the business. This step involves making one of the three possible decisions listed below: Decide that the business opportunity is viable and move forward with it. Do more study and or examine additional options. Decide that the business is not viable and abandon it.

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The Business Opportunities and Entrepreneurial Activities To be an entrepreneur one must have the passion to own a business; self motivated and prepared to face risks. The reason for entrepreneurship is the ability to identify, pursue and exploit the value from a business opportunity. You cannot call yourself an entrepreneur until you identify and track at least one business opportunity. Business opportunities may be there but not every one will follow up on them. You heard people say I had the same idea when they see a business they were thinking of starting has commenced operation under the ownership of a stranger. If a business opportunity is complex leave, you will be lost in the arrangements of so many parts that have to work together smoothly. Business Idea and Business Opportunity A business idea is a seed for a business opportunity. Before business opportunities are developed one should identify business ideas. Business ideas are new, creative approaches to specifically address a perceived needs, wants, problems or challenges of customers through a profit generation activities while opportunities are business projects which an entrepreneur has selected to invest his/her resources to create value on the basis of assumptions of favourable market need and profit. The selection of business ideas involves only one step scoring method. The selection of business opportunities involves the assessment of business ideas and undertaking feasibility study.

SUMMARY
In this session we described business opportunity as an attractive business idea which an entrepreneur has selected to invest his/her resources to create value on the basis of assumptions of favourable market need and profit. It was argued in this session that an acceptable business opportunity is combinations of confirmed need in the community; capability of an entrepreneur; and availability of resources to develop the business opportunity. We discussed the application of feasibility study as a basis of selection of a business opportunity. We claimed that entrepreneurship is the ability to identify, pursue and exploit the value from a business opportunity. Lastly we differentiated a business opportunity from a business idea.

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EXERCISE
Answer the following questions: 1. Describe a business opportunity.; 2. What can make a business opportunity acceptable? 3. Explain the process of selecting business opportunities?

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2.2.5 Risk Taking Session Duration: Two Hours Session Rationale
All the businesses are exposed to different degrees of risk. Risk exists as a result of businesses living in an uncertain and ever changing environment. It is sensible to study so that one comes up with measures to reduce it. Owning a business without understanding eth risks the business faces will be playing a dangerous game of gambling. Entrepreneurial Attributes An entrepreneur identifies a business opportunities selected the most viable, develops a business model, and mobilizes resources to start a business whose success is not certain. All entrepreneurs are risk takers. Risk taking is the responsibility taken by entrepreneur for investing resources in an enterprise and he/she is paid part f the profit as dividend for taking the risk.

Session Learning Objectives
On completion of this session, the trainees will be able to: 1. Define the term risk; 2. Describe risk taking and risk avoidance; 3. Explain the types of risks taken by entrepreneurs; 4. Relate risk taking to entrepreneurship;

Learning Outcomes
The learning outcomes are: 1. The term risk correctly defined; 2. Risk taking and risk avoidance described; 3. The types of risks taken by entrepreneurs are explained; 4. Risk taking is related to entrepreneurship;

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Learner Activities/Environment
Learners to define the word “risk”. Learners will brainstorm on the different risks. Learners in groups will identify risks faced in selected enterprise areas and measures to reduce the level of danger.

Instructional methodology
7. Introduction
Introduce the session by reviewing the session objectives, learning outcomes and the learning activities. Ask Learners to define the word “risk”. Ask the Learners to say other words that mean the same as risk Make a presentation on “Risk Taking and Risk Avoidance”; Note the reasons for risk taking and risk avoidance Ask the Learners to brainstorm on the different risks; Add to the list of the types of risk faced by enterprises. 8. Main Activities In groups, ask the groups to identify risks faced in the following areas and measures to reduce the level of danger; Risk Identification Table No. Area Risk 1. Entrepreneur 2. Marketing 3. Production 4. Management 5. Human Resources 6. Finance

Risk Management

Ask the Learners to present their findings; Review the presentations with the Learners in plenary; Ask the Learners to mention the highlights of the presentations.

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7. Conclusion
Ask Learners to identify key points that emerged from the learning experience and discussion. Ask them to state the general conclusions from the lesson. Key Points to note are: i. Definition of entrepreneurial traits; ii. List of entrepreneurial traits and their meaning; iii. Success in Business and Entrepreneurial Traits

Trainer Preparation
Review the materials on Risk Taking; Organise all the materials needed for the session (Hand outs, markers, Flip Chart paper) Draw the Risk Identification Table;

Trainer Tips:
A number of people get scared by risk. It is at this stage that potential entrepreneurs give up because of fear of loss. You the trainer should emphasize that risk is everywhere. If we were to be frighten of risk that surround us we would be frozen into inactivity and that will be the end of us.

Reference Materials:
Institute of Chartered www.icaew.co.uk Accounts,

Risk

Management

for

SMEs

Assessment Criteria and methodology:
Criteria
The term risk correctly defined; Risk taking and risk avoidance described; The types of risks taken by entrepreneurs are explained; Risk taking is related to entrepreneurship;

Methods
Individual Assignment; Group Exercise; Tutorials;

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iii. This is to narrow.Session Evaluation Collect and analyse the data on the following: i. Failure is the first lesson to success. risk could also represent the opportunity to take profits. Risk avoidance is the situations where individuals. Effectiveness of Training Used ii. Risk exists as a result of you the entrepreneur failing to forecast with certainty of future events. You business will grow. So. are especially those that have never gone into business. In some of our communities. people ridicule individuals that have failed in business. Such individuals prefer to look for jobs. One way of removing this fear is training. loss and creates risk avoidance. “Business is not for me”. you should not be afraid to make decisions that may result in failure but you can learn from you failure. Relevance of Training Material to the session iv. Risk also offers you an opportunity to make a profit. Risk Taking and Risk Avoidance Entrepreneurship demands that part of your culture is risk taking. Usefulness of risk taking to Learners career. are afraid of going into business. You hear them say. You the entrepreneur have potential and a trait to take risks. counselling and learning by observation from those in business. The possibility of failure cannot be avoided. Businesses usually look risk as the potential of loss or failure. Risk is danger or threats to your business. Mastery of Skills or Subject by Learners LEARNERS HAND OUT Define the Term Risk All the business you have seen and those you will see in future are all exposed to different degrees of risk. You may have observed that some individuals have skills that can assist them start a business that may even pay them more than any job but they are afraid of failure. You have experienced risk taking in social relations and career. risk what is necessary and avoid risks which have little likely incentive. your problems and opportunities will multiply. Adopting a safe and failure proof life is not 132 . Fear of failure. The experience will help you judge the chances.

loss of cash.fire.poor management of finance. sudden government policy change. materials supply disruptions are some of the risks in the operational arena. buy at a low price inputs produce and sell is an activity awarded by the earning of a profit. Operational risks . loss of a financial investment. and poor distribution systems are risks areas an entrepreneur should manage. have the passion to live in the present and you take the necessary risks to harvest success in the future. Many budding entrepreneurs backslide to job seeking. weather. poor marketing skills. These are: Environmental risk. Market Risks – the emergence of competitors in the industry. You place your money in a business. Financial Risks. incorrect pricing are high risks areas for businesses especially small and medium sized businesses. Entrepreneur’s Risk – how committed are you to won a business. Types of Risks Taken By Entrepreneurs There are types of risks especially experienced by new entrepreneurs. thefts.profitable. use the money to assess the market. low demand for locally produced goods. inflationary pressures. To manage risk you must be aware of past events in the field. high taxes and high interest rates. sudden change in technology. exchange rate instability. Risk Taking To Entrepreneurship The awareness that you can make a profit by taking a risk is one of the motivating factors. riots. To leave a life of a king you will work under the pressures and conditions of risk-taking.staff turn over. Business Management Risks . Lack of experience in the business is another cause of failure. 133 . poor planning skills.

An entrepreneur is different from a gambler in that an entrepreneur puts an effort and other resources having assessed the high possibility of success. “Risk taking is gambling”. What is risk and risk taking? 2. Various types of risks especially experienced by new entrepreneurs were listed. Risk taking was explained as the ability to judge the chances. The success or failure in such efforts is placed on lucky. Exercise Answer the following questions: 1. When one is taking risk it does not mean that one must be unthinking. self-confidence. information seeking.Risk taking is not the same as gambling. risk what is necessary and avoid risks which have little likely incentive. There is a big difference between gambling and risk taking. The risk taking ability and characteristics of entrepreneurs are linked by the ability of the entrepreneur to understand their business. Risk avoidance was described as adopting a safe and failure proof life though not profitable. Why do individuals avoid taking risks in business? 3. goal setting and determination to achieve. There are millions of people unhappy with there current situation. Do you agree? Explain your answer 134 . The awareness that you can make a profit by taking a risk is one describing entrepreneurship. Risk was described as either a danger or threats to your business or an opportunity to make a profit. They look out for huge rewards with the barest minimum of investment. Summary We discussed that risk exists as a result of you the entrepreneur failing to forecast with certainty of future events. They have very little confidence in the possibility of success.

he or she mobilizes financial and non financial resources to start operations for the enterprise. how do individuals organizing social function parties and events are able to mobilize resources. Define the concept of resources. The various resource providers are outlined. The importance of resources in an enterprise is explained.UNIT A2. 3. Now.3. 2. 4. there are numerous sources of inputs which one with talent can exploit. 6. 5. Ask yourself. After convincing himself/herself to venture into business. Without resources nothing will be produced or sold. production. 135 . Mobilise resources fro enterprise development Learning Outcomes The learning outcomes are: 1.1 Resource Mobilisation Session Duration: Two Hours Session Rationale Resources are inputs that go into an enterprise to ensure that activities are carried in marketing. and management. 4. Outline the various resource providers. Session Learning Objectives On completion of this session. Traditionally everyone in need for resources to go into business looked to the banks for assistance. Explain the importance of resources in an enterprise. 2.3 Resource Mobilisation for an Enterprise 2. 3. Are there lessons we can learn from social function organizers? Entrepreneurial Attributes An entrepreneur first resource mobilize effort is to recruit himself/herself to venture into business. Discuss methods for resource mobilization. Discuss the role of resource mobilization in an enterprise. The concept of resources defined. the trainee will be able to: 1. The role of resource mobilization in an enterprise is discussed.

Take note of the following qualities: i. Learners will identify possible providers of the resources identified. Learners will list the resources needed. face to face) to the learners to ask for the resources from one of the identified resource providers. Introduction Introduce the session by reviewing the session objectives. Curiosity. The methods for resource mobilization are discussed. 136 . telefax.5. Optimism. Confident. Assign the Learners to identify possible providers of the resources identified. Instructional methodology 1. Learners will give examples of the resources identified. 6. Refer the learners to the session on entrepreneurship. High energy levels. Ask the Learners to prepare a report on their assignment. Risk taking. 2. Persistent. Ask the Learners to make comments on the suitability of the definition Ask the Learners to give examples of the resources identified. Refine the definition. Main Activities Ask the Learners to list the resources needed. Combine by picking up aspects of the definition from the suggestions. learning outcomes and the learning activities. Write down the various suggested definitions. Resources for enterprise development are mobilized. Review the report. and Self Belief. ii. Provide a means of communication (letter. telephone. economical. Make a presentation on the qualities needed to mobilize resources. Learner Activities/Environment Learners will define the concept of “resource”. Ask Learners to define the concept of “resources”. Flexibility. Prudence and Competitive. Passion. email.

The various resource providers are outlined. The methods for resource mobilization are discussed. Resource Mobilisation and Fundraising Development. Flip Chart paper) Organise what means of communications for Learners to use. markers.Give feedback to the groups. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Trainer Tips: Millions of individuals out there are not able to start enterprises fro one reason – lack of money. Methods Individual Assignment. Sandon Assessment Criteria and methodology: Criteria The concept of resources defined. The role of resource mobilization in an enterprise is discussed. Ask the Learners to state the general conclusions from the lesson. Tutorials. Resources for enterprise development are mobilized. You must emphasize that while money is important there other more important resources and enterprise needs such as he entrepreneur himself/herself. The importance of resources in an enterprise is explained. Post the summary of the results on the wall. 137 . Trainer Preparation: Review the materials on Resource mobilisation. Organise all the materials needed for the session (Hand outs. Reference Materials: 1. SAIF. Group Exercise. Review the summaries 3.

Usefulness of resource mobilisation to Learners career. Curiosity . Risk taking – to mobilise resources you should not fear taking calculated risks. You will need to improve your proposing skills. 138 . 5. There are other resources needed namely human resources to carry out work. business guidelines to assist in a consistent and quality provision of information. 4. materials to turn into products or services and funds to buy resources from outside the business. However. iii. the amount of funds can be reduced if ask fro resources in stead of hard cash. Mastery of Skills or Subject by Learners LEARNERS HAND OUT Definition of Resources To start business operations you will need resources. You the entrepreneur are the most important resource in the business. How much resources you will need will depend on the size of the business and the number of owners who can contribute capital. Optimism – if you are turned down by one person or one organisation do not give up. Resources are might be financial or non financial. Borrow resources you need certain talents such as 1. Relevance of Training Material to the session iv. Qualities you need to Mobilise Resources for an Enterprise You must estimate how much resources you need to start and run the business. Passion – you must have a strong passion for business opportunity 2. Resources are inputs that are needed in the business to carry out the business operations. Effectiveness of Training Used ii.Session Evaluation Collect and analyse the data on the following: i. Money is usually the resource mentioned by most starting up entrepreneurs. Prudence – you must be careful with money and have control on cost and the value to the business. Competitive – resources are limited and as an entrepreneurs you must beat competition 6.ask many questions on who can help on the contact persons for resources 3. facilities such as machines to make work easier.

Banks give loans. Buy items you need on credit. Ask relatives and friends to lend or give you all or part of the resources you need.never give up in asking for resources until you receive. Be Persistent . 8. Sell personal belongings. 2. Flexibility – you should take advantage of the changing resource environment. 9. It is party where you ask friends and relatives to make pledges to your career change from unemployed or employed to self employed. Let customers buy in advance. 4.use all available resources on priority areas in the business. List all the type and amount of resources you need to develop your business. 139 . 6. 8. Approach one of the government agencies to provide you with support Mobilising Resources for Enterprise Development To mobilize resources you must be well organized. 10. Can you afford interest and loan repayments? Here are other sources: 1. 9. 3. 12. Be Confident – you must be confident you will achieve resource mobilisation goal. Ask equipment suppliers to offer equipment on hire purchase. 7.firmly believe that success and failure lies within your personal control and influence Sources of Financial and Non Financial Resources Most of us when looking for resources for a business what comes to mind first are the banks. Self Belief . Prepare a business plan. Send a business proposal to Micro Credit Organisations. High energy levels – Take good care of you health and eat sensibly because you will definitely be stressed at more than one occasion. 2. 11. Buy second hand from auctions or advertisements. Hold a “Career Change Party”. Approach an insurance company to invest in your business. 5.7. 10. Be economical . The following steps can help you mobilise resources: 1.

Examine funding prospects including yourself. 5. 4. 6. 10. informal and formal sources. 8. Prepare an action plan. Review the plan. Monitor the progress of fundraising activities.3. Evaluate the results of the resource mobilization. Prepare a fundraising strategy (objectives and approaches). Repeat the process 140 . 9. Put plan into action 7.

2. What is the resource that is always available to an entrepreneur? 3. Who can offer you non financial support? 141 . Exercise Answer the following questions 1. Sources of inputs fro the business are outlined. List organisations that can provide you with financial support in Zambia? 4. To mobilize resources certain talents are needed. The steps to mobilizing resources were outlined. Is “information” a resource? Explain your answer.Summary We explained that resources are inputs that are needed in the business to carry out the business operations. It was explained that how much resources the business need s will depend on the size of the business and the number of owners who can contribute capital.

Define the terms of networks and networking. 2. Illustrate the role of networks and networking in a business environment. Networks support an enterprise in various areas as such market information. advice. State the importance of networks and networking in enterprise development. 3. the trainee will be able to: 1. Entrepreneurial Attributes To succeed in business an entrepreneur cannot live like an “island”. Learning Outcomes The learning outcomes are: 1. economic. references and support to succeed.1 ENTERPRISE NETWORKING Session Duration: Two Hours Session Rationale Networks are groups of individuals and organizations sharing resources. 6. Identify the various types of networks essential for enterprise development. Session Learning Objectives On completion of this session. Explain the principles of networking. political and technical contacts to survive. An entrepreneur needs to have wide sources of information. An entrepreneur must establish social.UNIT A2.4 Networking for Enterprise Development 2. 4. Networking is a skill to seek and provide resources to a grouping with similar goals. Establish networks. State the importance of networks and networking in enterprise development.4. 5. production techniques and management tips. 142 . Define the terms of networks and networking. 2.

Introduction Introduce the session by reviewing the session objectives.3. 5. selection of business ideas. Marketing Contacts. Main Activities Ask the Learners to illustrate how networks can help in the following cases: i. Establish networks. competing successfully. Learner Activities/Environment Learners will draw and give meaning to the symbols to represent networks. roots. iii. Family and Social Contacts. Identification of business ideas. iv. learning outcomes and the learning activities. iii. brain. and raising funds. Selection of business ideas. Explain the principles of networking. Review the presentation and give feedback on the meaning of networks Present the importance of networks and networking in an enterprise in relationship to the following: i. expanding the market size. Human Resources Contacts. bicycle wheel. Mobilizing resources. Learners will illustrate how networks can help in the identification of business ideas. v. ii. ii. mobilizing resources. Production contacts. Ask Learners to draw and give meaning to the symbols to represent networks (Sunflower. branches. increasing production. Illustrate the role of networks and networking in a business environment. spider web. roads. Instructional methodology 1. reducing risks. 6.) Ask the Learners to present their definitions. 2. 143 . Identify the various types of networks essential for enterprise development. Financial Contacts. 4.

iv. Online networks: Make a presentation on principle of networking. Expanding the market size. If you accept support you must also contribute. Reducing risks. Ask then Learners groups to present the results of the assignment. 144 . Make a presentation on the types of networks The main points to include are. Competing successfully. Service organizations iv. ii. vi. Invite a member of an association to discuss the “The Role of Associations in Fostering Growth of Business”. If you needs are promoted you must also do the same for others v. i. 3. If you request you must also offer assistance iv. v. Trust and persistence Ask the Learners to make outline steps to developing a network. Increasing production. iii. If you receive you must also give. viii. Strong-contact ii. Casual-contact networks iii. Points to emphasise are. Special Groups networking groups vi. To successfully network you must apply the following norms: i. vii. Review the presentations Give feedback on the presentations. Raising funds. Review the presentation. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Professional associations Social/business organizations v.

State the importance of networks and networking in enterprise development. Mathew Sartwell.Trainer Preparation Review the materials on Networking. 1995 2. Napoleon Hill’s Keys to Success. markers. Establish networks Methods Individual Assignment. You may ask Learners to discuss the merits and demerits of political networks. Illustrate the role of networks and networking in a business environment. Session Evaluation Collect and analyse the data on the following: i. London. Reference Materials: 1. Piatkus. 1997. London. Effectiveness of Training Used 145 . Identify the various types of networks essential for enterprise development. Tutorials. Flip Chart paper) Invite the member of a local business association. Organise all the materials needed for the session (Hand outs. New Premium House. Assessment Criteria and methodology: Criteria Define the terms of networks and networking. Explain the principles of networking. Starkey Paul. Networking for Development. IFRTD. Group Exercise. Trainer Tips Political networks have not been discussed.

A network is group of entrepreneurs sharing information and supporting each to develop their businesses. The loner – likes to work alone. The Builder is well organised net worker. 3. 2. 4. Socialiser – tries to make friends with every one. Networking is a must have skill for a business person most business people. This type of a person focuses on his/her own agenda. iii. Relevance of Training Material to the session iv. good listener and learner. Usefulness of networks and networking to Learners career. 146 . This network quickly forgets the face behind the business cards. If you spend a bit of time checking in your community you may find a network relevant for your needs. but especially for entrepreneurs. The need for gathering information is not important. It is very profitable to establish contacts with individual’ whose help you will need in future. This type is collector of information that others can benefit from. Builder – Very generous individuals.ii. The contacts established are done randomly. Simply networking is meeting people who can be of help to you and you being a help to them. Types of networks essential for enterprise development Every individual can be associated with any of these networking types: 1. Mastery of Skills or Subject by Learners LEARNERS HAND OUT Define networks and networking Networking is when a group of entrepreneurs come together to provide to each support for the sake of their business. User – regular collector of business cards.

The networks can be divided into the following: Strong-contact networks: arranged in such a way that members are able to give each other references. It is a source of wide references. business singles clubs) -Combine social activities with business networking and can provide a variety of networking opportunities. Service organizations (Lions): humanitarian Associations that exist to provide and support efforts and good works in the community. What is the importance of networks and networking in enterprise development? Networks are important for the following reasons: • • • It helps you market yourself and your business at the least cost. Professional associations (knowledge networks) -. Social/business organizations (Jaycees. Allow one or few members per profession. many tend to resemble singles bars. Special Groups networking groups: This where social groups such the youth or women come to together to share experiences and opportunities. Members see each other every week. Every person you meet has other people who also know others who can assist you? A link to a network is connection to a resource base at a low cost. These networks bring competitors and collaborators together to share information and solutions to common problems.In your town there are a number of choices you cane make about joining a network. Casual-contact networks (ZANC SBA): This is a case where business persons are brought together for a common goal. Individuals are able to stay in touch and share information and support each other through the ICT. Examples are District Business Associations. 147 . They offer an opportunity for people to come together in locations that facilitate references and knowledge networking. Online networks: A new opportunity of networking has been observed with the onset of increased assess to the internet and email facilities.exist to exchange information and ideas among professional in particular industry. Examples are alumni. There are good for developing strong contacts.

148 .• • Creates good well and trust in the business circles. You must. when needs arise. mention the needs to members of the network. It provides you with potential opportunities The role of networks and networking in a business environment The role of networking in networks is mainly business development. • Trust and persistence – in a network you must develop trust because mistrust can create conflict. and • Business development Principles of networking To successfully network you must apply the following norms: • Giving and receiving – as much as you want to receive you must also be ready to give. • Promoting other needs and yours – you may have received information that some one in the network needs some support and it is your responsibility to inform others of that need. • Contributing and accept support – you expected to contribute support to others as well as being ready to accept support. • recruiting. • Offering and requesting – you will be offering on regular information and you should also request for information. • knowledge exchange. Business networking serves many purposes: • Sales promotion. • general marketing.

Start with your family and friends. Get to know yourself well. Carry with you business cards to all gatherings. Develop and use your ability to ask questions. Listen more and talk less. 7. 149 . Present your skills not your job. Create relationships with the business cards. timely and consistently. 5. Network Map Market Contacts Public Sector Contacts Finance Contacts You Public Sector Contacts Social Contacts Technology Contacts Human Resources Contacts Steps to establishing a network 1. 9. Do not make empty promises. 13. To be prepared to communicate quick. 11. The starting point is to develop network map.Establish networks To establish a network start with people you know already. brief and focused information about you.. 12. 6. meetings and travels. Conduct follow up actions decisively. Attend social gatherings. 2. Write down useful details of people you will meet on a daily basis. 3. 4. The first thing you need to do is to write a list of people you know what they do and where. 8. Prepare informative business cards. 10. Develop a tracking systems of contacts.

Be sensitive to cultural differences – preconceptions of people will make you unwanted element in the network. and maintain contact Here are the Dos of Net Working • • • • • • • • Be patient – nobody grew into an adult in a day. 17. A network is group of entrepreneurs sharing information and supporting each to develop their businesses. Follow on given leads. connections. 16. Socialise at gatherings and be visible. learn. There are steps of establishing a net work among them are attend social gatherings. Develop a data bank. create relationships. What are networks and networking/ 2. Conduct follow ups on contacts. places. Establish long term business contacts and referrals.14. recommendations. persist. There are principles one need to follow in a network. 19. Exercise Answer the following questions: 1. 15. Listen. Contact people even when you do not need their help. communicate. 18. Let your style fit your networking. Focus on you goal – unless you aware of you destination networking will a uncomfortable affair. contacts and timings. how to do it. Summary Networking is when a group of entrepreneurs come together to provide to each support for the sake of their business. Look for unique opportunities. Mention to two networks you know and what is their purpose? 150 . What type of networks can one fins in the community? 4. look for unique opportunities and conduct follow up actions. 20. Ask for who. Be selective on what you can do. Aim fro quality in the network relationships. steps. Networks are important for linkages to sources of support and business. What is the importance of networks? 3.

5. Discuss the barriers to communication. You can now communicate with people thousands of kilometers away and get a feedback in a matter of minutes at a cost less than a bottle of a soft drink. Define the term of communication. the trainee will be able to: 1. Explain the communication process.5 Effective Business Communication in an Enterprise 2. If you communicate effectively you may save or earn money. If an entrepreneur communicates poorly the result may be conflict or waste. employees. Relate the importance of communication in an enterprise Explain the types of communication in an enterprise. 7. Communication in business is not same as ordinary communication. 3. Session Learning Objectives On completion of this session.1 COMMUNICATION IN AN ENTERPRISE Session Duration: Two Hours Session Rationale Every human being communicates every day.5. management and other stakeholders. There are now various methods for communication which a business can use. 2. 151 . Identify ways to address the barriers to communication. Entrepreneurial Attributes An entrepreneur to succeed must be a good communicator. He/she needs to communicate to customers. suppliers. Explain the importance of communication in an enterprise. The prospect of losing money through poor communication is very high. The coming of email and internet has made the world one big village. 6.UNIT A2. 4.

Review the definitions and compare the similarities and differences. Modes of communication. Combine the two member groups into four member groups. 2. Process of sending and receiving the message. The term communication is correctly defined. Ways to address the barriers to communication are identified. Ask each groups to write their definition on the piece of paper. Ask each group to present their definition. 6. Learner Activities/Environment Learners will individually define communication. learning outcomes and the learning activities. Leaner will identify the barriers to communication. The importance of communication in an enterprise is related to entrepreneurship 5. Each Learner will be asked to send verbally a message to the colleague seated next to them. Ask the Learners individually to define communication. i. ii. Refer the Learners to the handouts for another definition. 7. Medium selection. Learners will propose solutions to the barriers to communication. 4. The importance of communication in an enterprise is explained. Sender receiver. iii. The communication process is explained 3. iv. The types of communication in an enterprise is explained. Introduction Introduce the session by reviewing the session objectives. Instructional methodology 1. 152 . The barriers to communication are discussed.Learning Outcomes The learning outcomes are: 1. 2. Ask the Learners to form groups of two and let them combine the two definitions into one. Main Activities Present the communication process Major points to include are.

Flip Chart paper) Draw the Entrepreneurial Traits Application table. Ask the Learners to identify way of minimizing barriers to communication.Make a presentation of types of communication in an enterprise. markers. Ask them to state the general conclusions from the lesson. The message is: The Zambian Entrepreneurs exhibit stands at the exhibition in Entebbe in Uganda were exceptionally efficient and effective. Medium of communication. Receiver level. iii. Ask the Leaner to identify the barriers to communication in this case. Ask the Learners to suggest solutions to the barriers to communication identified. 153 . Call one of the Learners to read the message on a piece of paper to tell the Learner seated next to him/her to send verbally the message to the next and next person until the message comes back to you after going through all the Learners. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. v. iv. Points to consider are: i. Message level. ii. 3. Trainer Preparation Review the materials on Entrepreneurial traits. Sender level. Organise all the materials needed for the session (Hand outs. Feedback level. Make a presentation on the barriers to communication.

Relevance of Training Material to the session iv. Ways to address the barriers to communication are identified. Usefulness of business communication to career. iii. This explain why individual team up to draw on their personality strengths to from a formidable team of investors. New York. Session Evaluation Collect and analyse the data on the following: i. Effectiveness of Training Used ii. The importance of communication in an enterprise is related to entrepreneurship The types of communication in an enterprise is explained. one can go into business with other individual who possess the missing traits. 1999. Group Exercise. Pearson. Communication for Business. Assessment Criteria and methodology: Criteria The term communication is correctly defined. 2000. 2. Alternatively. Mastery of Skills or Subject by Learners 154 Learners . Houghton.Prepare an example on the application of known entrepreneur in your area and their known personality that helps the individual solve difficult problems. Fundamentals of Management. Reference Materials 1. the traits can be developed. However. Griffin W. Tutorials. Essex. The barriers to communication are discussed. Taylor Shirley. Ricky. Trainer Tips: Note that no one individual can have all the traits listed. The communication process is explained The importance of communication in an enterprise is explained. Methods Individual Assignment.

written record. ideas. and symbols. security. resources. influence. urgency. through written sound. distance. 8. receiving information. 5. 6. You are communicating every day by talking. In business communication is conducted internally and externally through various methods to achieve set goals. confidentiality. 2.LEARNERS HAND OUT Definition of Communication Communication involves giving. gesturing. Receiver of message. 3. writing. Methods of Communication Communication Type 1. 7. time. or visual means from a sender to a receiver for particular purpose. 4. Internal Form Method Telephone Intercom Meeting Presentation Face to Face Messages Telephone Report Oral Written 155 . Communication Model Noise Message Message Medium Sender Receiver Feedback Noise Feedback The method used is usually determined by: cost.

9. 16. 17. 2. 11. 14. Graphs Email Fax Notice Form/Questionnaire Minutes Newsletter Memo SMS Method of Communication Meeting Conference/seminar Conversation Telephone Presentation Written Leaflets Letter Invitation Forms/Questionnaire Press Release Customer magazine Advertisement Notice Graph/chart Report Email Fax Letter Oral The Barriers to Communication Miscommunication is a common problem in personal or business lives. 15. 10. 156 . External 1. 15. 8.9. 12. 14. 13. • Body Language – the body gestures may send a wrong signal to the receiver of the message. It has been a source of conflicts and waste. 16. 5. In miscommunication the sender means one thing the receiver of the message understands something else. 7. 18. Communication may break down for various reasons. 4. 3. 12. 6. 17. 13. Methods of Communication No. 10. 11.

Distraction – Communication channels breaking up. Listening – The receiver may not be attentively be listening. Location – distance of recipient or where message has to reach. Also. e. so the recipient misses key points. Recipient breakdown – the recipient deliberately makes a choice to misinterpret the message because of their attitude to either the sender to the message at hand. Vague purpose – not detailed enough. Emotional Stress. and hard to understand.communication will be ineffective if the person involved in sending the message or receiving it will be afraid. as it can be too complex. Relationships – the state of the relationship between the sender and the receiver will have an influence on the effectiveness of the communication.complex. Status of two parties – can be intimidated by the other person’s status because of their gender. Language . Other problems with communication could be: • • • • • • • • Long chain of command.• • • • • Language – the words being used may have different meanings. Red tape – message gets passed on to many different people before finally reaching the recipient making the process too long and the message changing. • • • Sender breakdown – too much information is being sent. Also. then written instructions are better than messages which can be misinterpreted. language can be difficult to understand. written. electronically etc). actions can be delayed as a result of a late arrival of the message. angry. Barriers to communication can occur if the recipient has failed to convey the meaning or / and the importance of the message. Method breakdown – when information is very detailed or complicated. more explanation required Inappropriate medium (method used.g. and crying. Prejudgment – this is a case of hearing what is on our mind already. age etc. 157 .

What is communication? 2. 158 . It has been a source of conflicts and waste. ideas. Read – expand your language by reading. There are number of strategies one can apply to minimize communication break down? Exercise 1. or visual means from a sender to a receiver for particular purposes. The method used is usually determined by cost. Be open minded – do not make judgement before you hear the message. receiving information. Maintain standards – aim for quality language and presentation. influence. written record. Get feedback – find out the message reached and it was understood. v. Listen attentively – before you speak listen. Want is the importance of communication in an enterprise? 3. vi. Miscommunication is a common problem in personal or business lives. through written sound. resources. Suggest three strategies that can reduce barriers to communication. urgency. x. Summary Communication involves giving. Time your communication – select the right time to communicate. There are a number of communication methods. What are the barriers communications? Give examples. time. Receiver of message. iii. vii. 4. Select the right media – select the right method you will use to communicate. Think and plan – before you speak or write plan your communication very carefully. confidentiality. ix. iv. security. ii. Use appropriate language – use simple and clear language. viii. Use suitable language – use the right words to send the right meaning. distance.Strategies to minimize Barriers to Communication For communication to be effective apply the following guidelines: i.

A plan for effective communication is developed. The likelihood of success is high. 2. Plan for effective communication. This systematic approach to life applies to communication. the trainee will be able to: 1. The existence of a clear and specific purpose. It requires planning. Session Learning Objectives On completion of this session. Learners will develop a communication plan for their enterprise following the format provided.2 PLANNING FOR EFFECTIVE COMMUNICATION IN AN ENTERPRISE BUSINESS Session Duration: Two Hours Session Rationale Finding out how to communicate important messages to key stakeholders of a business in the most effective way possible is not an easy task. where you are and where you are going with your communication. Ask Learners to define planning randomly. Explain planning for effective communication. Learner Activities/Environment Learners will define planning randomly. 2. Planning for effective communication is explained.5.2. Plan will show where you have come from. learning outcomes and the learning activities. Learning Outcomes The learning outcomes are: 1. 159 . aim or goal is the starting point for the road to communication achievement. Entrepreneurial Attributes An entrepreneur believes in systematically carrying out activities to achieve the entrepreneurial vision. Instructional methodology Introduction Introduce the session by reviewing the session objectives.

Target Audiences vi. Tactics ix. Spokespeople Ask the Learners to develop a communication plan for their enterprise following the format provided. Make a presentation on communication planning. markers. Campaign/Organizational Goal and Key Objectives iv. Iowa State University. 1997 160 . Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion.Nigel Atkin’s. Record the definition on the board. Reference Materials Don Hofstrand & Mary Holz-Clause. Organise all the materials needed for the session (Hand outs.Main Activities Ask Learners to define planning randomly. Trainer Tips You may also introduce an assignment for Learners to list the type of communication equipment that they would provide to their enterprises. Ag Marketing Resource Center. A Guide for Communications . Situation Analysis: External or Public Environment iii. Timelines x. Situation Analysis: Organizational Background ii. Key Messages vii. Flip Chart paper) Prepare a Communication Plan Format. Co-Directors. Trainer Preparation Review the materials on Planning for Communication. Points you should include in you presentation are: i. Strategies viii. Planning . Ask them to state the general conclusions from the lesson. Communication Objectives v.

In simple terms. iii. is an important business function. Tutorials.Assessment Criteria and methodology: Criteria Planning for effective communication is explained. how. planning is the process of choosing who. what. Session Evaluation Collect and analyse the data on the following: i. when. Communication planning. Relevance of Training Material to the session iv. and where of goal attainment Communication planning is figuring out how to communicate important messages to key stakeholders of a business in the most effective way possible. actions and resources necessary to achieve an intention. Effectiveness of Training Used ii. A plan for effective communication is developed. For example: Internal: rolling out a new benefit program to the employees of the business External: letting the shareholders know about a new stock offering. Communication plans may be internal or external in focus. Usefulness of communications plans to Learners career. Group Exercise. while often overlooked. Methods Individual Assignment. letting customers know about a new product offering 161 . Mastery of Skills or Subject by Learners LEARNERS HAND OUT Communication Plan Planning is the practice of identifying the means.

A good plan will help ensure that everyone in your business is on the same page when they communicate with the rest of the world. sharpen your message and help you better understand the environment in which you will be delivering that message. wasting valuable communication opportunities and getting pulled “off-mission” in the process. but government relations. investment promotions. Most small business have limited resources — both time and money. A strategic Communications plan will help your business focus those resources on the most important tasks and set priorities. 4. A well-developed media plan is important because the media is the primary 162 . Without a plan. and communications with suppliers. A communications plan will help you develop better media plans. A good plan imposes discipline and clear thinking that will help you clarify your objectives and target audiences. 2. 3.Elements of business communication planning include: Communication Vision Philosophy Communication and Information Goals Content and Meaning of all Business Messages Credibility Message Channel Audience Timing Effectiveness Why Develop A Communications Plan? 1. networking. 5. Communications planning will help your business put together all of its communications work on a particular issue. too. businesses run the risk of reacting to external events in a knee-jerk manner. including not only media activities.

You may consider these questions: 1. Who will publicly support your business role in the community? 10. Target Audiences 6. Situation Analysis: Organizational Background 2. What are the competitors’ messages? 163 .education force in our society. How exposed will your business be? 6. Situation Analysis: External or Public Environment 3. Key Messages 7. they set the public policy agenda and frame public perception on many issues. Will you widely be seen as small business? 3. How do you want to be positioned? 5. Have any special studies or surveys been carried out affecting your area? 8. OVERVIEW OF COMMUNICATIONS PLAN A typical plan outline will looks this: 1. Who are your supporters? 9. Timelines 11. What will the current local/national perception of your business. Spokespeople Situation Analysis: External or Public Environment It is important to be aware of the external threats and opportunities to your organization. Campaign/Organizational Goal and Key Objectives 4.? 2. and to have a good Sense of the communications environment in which you will be delivering your message. Communication Objectives 5. to those who may be opposed to your messages. Timing 10. How will your business be positioned within the media to date? 7. Will you be seen as credible? 4. Do you have competitors? 11. Strategies 8. Tactics 9.

Communication Strategies Consider the following questions when developing your strategies: Is your strategy proactive or reactive? Low profile or high profile? Local community or nation-wide? 164 . Who do you want to supports your business? 5.12. measurable and specific. What do you want your target audience to do. Who do you ultimately want to influence? 2. What are you aiming to achieve by communicating? 2. List them in order of priority to reaching your goal or key objectives. What is the message you want communicated? KEY MESSAGES There are many ways of communicating about you business. It is important to know which words will ring with your audiences. How can you reach your target audiences? 3. exactly? What is your “call to action”? Do you want your audience to buy your goods? Do you want them to change a personal behaviour? How will you measure success? What will your benchmarks be? Do you want to provide your audience with new information? What do you want them to do with this information? TARGET AUDIENCE 1. The results of testing may be unexpected — even counter-intuitive. What are the competitor’s strengths and weaknesses? Communications Objectives Objectives are concrete. which words or ideas the public will embrace.\ Consider these questions: 1. What effect will these messages have on your business? 13. 4. such as informal focus group testing or direct mail questionnaires may be required to fully understand your audiences’ motivations. Some research. Message testing is an important step to ensuring you develop a successful communications campaign.

Use The Plan! Don’t shelve your work and return to fighting fires. radio and/or TV (assuming you have the resources to do so!)? Who are your competitors? What do you anticipate competitors key messages will be in response to your release? How will you respond? What are the potential weak points in your argument or story? How creative can you be? Does your strategy permit the development of a specific Media Strategy? Which kind of media coverage will result in the greatest impact on Customers and suppliers? Should your story be delivered in a media briefing with specific reporters invited? Can your story be made visual? Are there ways in which your story could be staged. Now. The greatest benefit in having built your Strategic Communications 165 . Build an evaluation process into the project timeline. In selecting and prioritising your tactics.What are the major communications opportunities? What are the major communications challenges? What communications strengths will be available in your organization? What networks will your business? Does your approach need paid advertising through print. presented and/or supported by visual materials? When should your release be timed? How does it fit with other current events? What are current editorial priorities? TACTICS There are literally dozens of methods to reach an audience. Use it! Refer back to your communications work plan on a regular basis. consider these questions: How big is your budget? What personnel resources are available to you? How do you plan to deliver your key message(s) to your target audiences.

SPOKES PEOPLE Determine who within your business will project the most credible voice to your key audiences. you may also want more than one spokesperson. And. Without a plan. Timelines and Spokespeople 166 . if the government will be making budget decisions that will impact your business area. TIMING Timing refers to the natural links onto which you can hook your communications. and another to share your message with customer. Key Messages. For example. You may want to train one person to address the government and editorial boards. Communication Objectives. Situation Analysis: External or Public Environment. Target Audiences. Strategies. is that the next time you decide to mount a communications campaign. Be proactive and contact media and assistants to the Minister before the decision and announcements are made. other than the fact that you were able to pull off a fantastic campaign.Plan. if you track your successes. Summary Communication planning is figuring out how to communicate important messages to key stakeholders of a business in the most effective way possible. challenges and failures. businesses run the risk of reacting to external events in a knee-jerk manner. then you’ll be able to adapt subsequent campaigns to accommodate what you learned the first time around. A typical plan outline will looks this: Situation Analysis: Organizational Background. Does your business issue have natural links to stories around specific holidays? Plan out your activities well in advance of the holiday you are hooking your campaign on. Tactics. a large chunk of the work will already be done. Campaign/Organizational Goal and Key Objectives. If you are dealing with a variety of issues. be prepared to respond.

What the major components of a communication plan? 167 . What is a communication plan? 2.Exercise Answer the following questions: 1. What is the importance of a communication plan for an enterprise? 3.

Explain ICT in an enterprise.5. expand the target market. 2. Apply ICT in an enterprise. Learners will visit an internet café and ask the managers to explain the importance and applications of ICT for an enterprise. Learners will in groups identify two important elements of ICT in an enterprise.2. In business. 3. ICT is applied in an enterprise. 2. the importance of ICT in an enterprise described. ICT enhances information management and communication thereby simplifying decision making. improve customer service. Describe the importance of ICT in an enterprise. 3. Learning Outcomes The learning outcomes are: 1. the trainee will be able to: 1. 168 . Session Learning Objectives On completion of this session. ICT in an enterprise explained.3 APPLICATION OF INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) IN AN ENTERPRISE Session Duration: Two Hours Session Rationale This is era of ICT. the introduction of ICT offers an opportunity to reduce costs and communicate effectively. increase business hours and reduce costs of doing business. All these opportunities are a means of increasing profitability of an enterprise. Entrepreneurial Attributes ICT avails an entrepreneur opportunities to increase revenue. Learner Activities/Environment Learners will define ICT.

Instructional methodology 1. Post the definitions on the board Ask the Learners in groups to identify two important elements of ICT in an enterprise. Review the response and give highlights of the importance of ICT 2. Flip Chart paper. Introduction Introduce the session by reviewing the session objectives. Ask them to state the general conclusions from the lesson. Instruct the Learners to record their response on pieces of papers. Prepare for the visit to an internet café and meeting with the manager. Conclusion Ask Learners to identify key points that emerged from the learning experience and discussion. Ask Learners to define ICT. Ask the Leaner to present the response. learning outcomes and the learning activities. markers. Review the Internet Café visit by asking the lessons learnt. Ensure that the following aspects are covered: i. 169 . Categories of ICT Take the Learners to an internet café and ask the owners to explain the importance and applications of ICT for an enterprise. Key Points to note are: Trainer Preparation Review the materials on Entrepreneurial traits. Main Activities Make a presentation of the ICT application in an enterprise. Organise all the materials needed for the session (Hand outs. Uses of ICT ii. 3.

Assessment Criteria and methodology: Criteria ICT in an enterprise explained. Mdaan Anil. ICT stands for Information Communications Technology. 2001. ICT is a rapidly changing field. Group Exercise. New Delhi. college.Trainer Tips Encourage any individual without computer skills to make an effort to be trained in basic computer skills. 1999. Usefulness of ICT to Learners career. We can only understand it by looking back at what has happened so far. Management Consulting. Timothy.Commerce. Dreamland. Illustrated World of Internet and E. Relevance of Training Material to the session iv. 170 . Kubre Milan. hospital. machines and telephones. the Internet Investors. Methods Individual Assignment. 1996. 2. iii. Effectiveness of Training Used ii. the importance of ICT in an enterprise described. ICT is application identified in an enterprise. Tutorials. Session Evaluation Collect and analyse the data on the following: i. Maude J. Kent. Geneva. at school. You may also come up with your own definition after reading this unit. Mastery of Skills or Subject by Learners LEARNERS HAND OUT You have come across the word ICT in various situations. Reference Materials 1. ILO. vehicles. 3. CIB.

magazines and other complex documents. customer contacts through to complex material (e.g.g. catalogue) Presentation software E. Microsoft Word: Write letters. Categories of ICT ICT is normally grouped into: Traditional computer-based technologies (things one can do on a personal computer or using computers at home or at work).g. businesses. Microsoft Publisher. Microsoft PowerPoint. from basic lists (e. Standard Office Applications Word processing E. Oracle.g. make presentations. create and edit images such as logos. Access.Uses of ICT ICT uses digital technology to help you and me.g Adobe Photoshop and Illustrator. Microsoft SQL Server.g. Macromedia Freehand and Fireworks.g. and communities to have products that will store. either directly using a computer screen or data projector.g. reports etc Spreadsheets E. civil organisations. Publish in digital format via email or over the Internet Desktop publishing E. Graphics software E. create forecasting models etc Database software E. Microsoft Excel. retrieve. government. Digital communication technologies (which allow people and organisations to communicate and share information digitally) Traditional Computer Based Technologies Information applications include: 1. email. web sites or other publications 171 . Quark Express. robots and cell phones. manipulate or receive information electronically in a digital form. calculations. produce newsletters. Managing data in many forms. ICT is also concerned with the way these different uses can work with each other. the examples of the products are personal computers. drawings or pictures for use in DTP. Analyse financial information. digital television.

Often linked to software applications that run call centres and loyalty cards for example. The technologies involved in communication tend to be complex. Oracle. This is often achieved via networks of sending and receiving equipment. manage an organisation's accounts including revenues/sales. Internal networks These are normally called local area network (LAN). A wide range of systems is available ranging from basic packages suitable for small businesses through to sophisticated ones aimed at multinational companies. However. engineering. This type of network is valuable in a business office where there is need to have access to common data or programmes by all working in the office. 172 . there are aspects of digital communications that you needs to be aware of. usually over some distance. Communication applications include: The C part of ICT refers to the communication of data by electronic means. buying habits etc. bank accounts etc.2. This can cut down on costs of hardware purchases and printing materials in the business. Specialised CAD programs exist for many types of design: architectural. electronics. wires and satellite links. The aim of a LAN is to be able to share hardware facilities such as printers or scanners. purchases. Specialist Applications .g. Computer Aided Design Computer Aided Design (CAD) is the use of computers to assist the design process. Sage. The LAN involves linking a number of hardware items (input and output devices plus computer processing) together within an office or building. roadways Customer Relations Management (CRM) Software that allows businesses to better understand their customers by collecting and analysing data on them such as their product preferences. software applications and data.Examples (there are many!) Accounting package E. These relate primarily to the types of network and the ways of connecting to the Internet.

manipulate or receive various types of information electronically in a digital form. microwave dishes.Commerce is electronic commerce. Email It is a communication method of sending and receiving messages using computers on the network. retrieve. telephone lines. E-Commerce E. in this case you will need to be part of a Wide Area Network (WAN). Internet The internet is a global (world wide) network of high powered computers connected by cables.External networks Often you need to communicate with someone outside your internal network. It uses the email and internet to conduct business. You do not need to travel to the shop. E commerce eliminates the barrier of time and distance in buying and selling. Sell good and services. network connection and email address are necessary to use it. The Internet is the ultimate WAN . The commonest businesses on the e-commerce are: Retailing – selling goods and services directly to a consumer. The shop comes to you through computer. satellites and other digital equipment to store.it is a vast network of networks. A computer. You can also sell your goods to the whole world through the computer. It covers buying and selling using communication technology. You can shop from you office. Uses of the Internet in Business You can use the internet to: Advertise your goods and services. Facilitate communication or provide information about your business and its services. 173 . This is business taking place over the electronic network.

Pearson Professional. Livesay Harold C. Mastering Enterprise. retrieve. Palgrave Macmillan. 5. 4. UK. Fourth Estate. 1997. Critique of Entrepreneurship – People and Policies. Routlegde. 1999. What are the uses of ICT? 3. email. Management Pocketbooks. Armstrong Peter.Services – Airlines. New York. Now ICT is now changing the way businesses are run? E-commerce is the new addition to ICT. the examples of the products are personal computers. 2000. government. Aldershot. manipulate or receive information electronically in a digital form. and communities to have products that will store. ICT uses digital technology to help you and me. E. Warner Jon.Commerce is buying and selling using communication technology. 174 . Suggest what can be sold using communication technology? REFERENCES 1. 1998. Birley Sue and Muzyka Daniel. 1995. Samll Firms and Network Economies. . businesses. London. Edward Elgar. Activity 1. digital television. Perry Martin. 2002. 2. New York. Supply chain – providing services to develop products through the stages of production from raw materials to final products or services Summary ICT stands for Information Communications Technology. Kelly Kevin. robots and cell phones. What is ICT? 2. Entrepreneurial Management. banks and insurance companies are selling their services on the internet. 6. civil organisations. Entrepreneurship and the Growth of Firms. London. Networking. Calvin Robert J. New York. Hants. 3. 7. 2005. McGraw-Hill. New Rules for the New Economy.

1 Duties and Responsibility of Management 60 Minutes Session Duration Session Rationale In order to run a successful. growing enterprise.1. trainees will be able to • State the duties and functions of management • Relate the functions of a manager to entrepreneurship Learning outcomes • • Duties and functions of management explained Functions of management related to entrepreneurship Learning Activities Ensure that the learning activities include. an entrepreneur needs to possess not only entrepreneurial attributes but managerial skills as well Learning Objectives: At the end of the session. 138-03-A MODULE TITLE: UNIT A3. A definition of a manager and management Session Delivery Go through the reading materials provided together with the provided reference material and prepare flipchart or transparence and discuss the following: 175 .1 Developing Enterprise Management Skills Managerial and leadership skills in an enterprise 3.MODULE NO.

motivation and control. This should be followed by 2. organizing. In this discussion. Planning • • • Getting things done through the efforts of others Making things happen and produce results • • The determination of course of action in order to achieve desired result It is the process of anticipating the future and discovering alternatives course of action – a process by which specific objectives are established and details ways of achieving them are established Planning is a sub function of forecasting – what is to be done – How – when 176 • . 4. End the discussion on some of the tips as why manager fails Methodology: Lecture and Discussions Reading Materials What is Management? The art of achieving the objectives of a business / organization in the most efficient way Functions of Management As a process management can be described in terms of several major functions often performed simultaneously or as part of continuum The Functions are: • Planning • Organizing • Staffing • Directing • Controlling 1. directing. bring out the issue of sources of authority 5. Follow up with a discussion on the responsibility of a manger to the enterprise and to the employee. A discussion on the duties of a manger as arising from the function 3. An explanation of functions of management which should include planning.1.

– where and. • • Organisation – a group of people working together to achieve a common goal Organizing – division of work. Staffing • manning and keeping manned the position provided in the org. train. financial. • • • • Guiding and leading subordinates a process by which actual performance of the subordinates is guided towards common goal Inculcating in subordinates a keen appreciation of the org. authority and responsibility – it includes span of control. Organizing objectives. promote and retain and retire subordinates Directing 4. plant and machinery to objective 3. structure • a process in which managers select. allocation of duties. material resources. numbers of levels of management and delegation – It is bringing together human. orientates them continuously. clarifying their assignments etc Directing involves – delegating – Motivating – Communication – Coordinating 5. policies. Control • • • Continually monitoring of activities Its about measuring and correcting activities Types of Control 177 . – Who will do it – It involves selection of programmes and procedures 2. strategies.

materials etc – Knowledge of department.emphasized power over a situation or an individual – the right to command and power to make oneself obeyed • Two Types of Authority 178 . respect and praise when due fair evaluation of performance good working conditions •Authority of Managers • Authority .– production and operation control – inventory control – quality control – financial control The Individual Aspects of Control • • • • • • Establishing reporting systems developing performance standards measuring performance standards taking corrective action rewarding Responsibilities of a Manager Responsibility to the Department – Knowledge of managerial techniques – good leadership qualities – economy in operations – planning & coordination of work – establishment of targets and standards – proper care and use of equipment. interpretation of laws rules. regulations and policies Responsibilities to the Employee • • • • • • • Indoctrination of new employee Knowledge of HR adequate instruction in performance of assignments accurate. definite and reasonable assignments recognition.

– statutory authority - belongs to the position – personal authority - as a result of intelligence, knowledge, moral
qualities and the gift to command people

• • • • • • • • • • • • • •
,

to be effective both types of authority should be available

Why Managers Fail Lack of managerial skills knowledge and attitudes promoting levels of incompetence lack of authority lack of leadership drive poor relationship with the boss lack of commitment membership in trade union fear of victimization organization climate Is my relationship with senior management satisfactory? Am I doing too much routine or administrative clerical work? Have I have enough time to think? Do any of my staff need further training?

Reference Material

1. Busines Environment P. Diwan, Excel 1996 2. A Manual of Business Opportunity Identification, J.B Patel 1995

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3.1.2

Leadership Skills

Session Rationale
Leadership is the ability to inspire others to seek defined goals and objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals. It is the quality of behaviour in individuals by which others are drawn to accept their guidance – the more reason it is so crucial in entrepreneurship.

Session Objective
At the end of the session, trainees will be able to • Define the term leadership • Identify types of leadership • Demonstrate good leadership qualities

Session Outcome
• • • Leadership defined Types of leadership identified Trainees demonstrating good leadership qualities

Learning activities
• • Ensure that the learning activities centers on the following: A generic definition of the term “leadership” to include styles, traits, characteristics, roles and responsibilities. Identify the types of leadership (autocratic, participatory and consultative). In addition, a demonstration of good leadership qualities

Methodology: Lecture and Discussions Session Delivery
1. Show TR 3.1 and: • define the term “leadership” and a “leader” • discuss the differences between a leader and a manager • discuss the functions of a leader Divide the trainees into small groups and let them identify and discuss leaders they consider to be good in their communities. 180

2.

3.

4. TR 3.1 Defining Leadership Ability to inspire others to seek defined goals and objectives enthusiastically A human factor that binds people together and motivates it towards a goal

Let the trainees identify traits and characteristics of such leaders Rap up the session with a short lecture on leadership styles and source of their power as on HO 3.2 Distribute HO 3.1 as supplementary material

A leader – one who exercises influence over others

Quality of Good Leaders Commitment: Self dedication to a cause Courage:

• ability to stand difficult and dangerous situations
Foresight:

• Ability to see things before they happen
Human Relations:

• Empathy – putting oneself in position of others
Credibility:

• Having a good track record
Intelligent Ability to think quickly and correctly Decisiveness Ability to stand by own decision Emotional Stable Ability to control one’s temper Visionary Ability to create picture of what the future should be Self-confident Being sure Capacity to admit error Honest

• • • • •

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Characteristics of Principle - Centered Leaders They are continually learning They are service oriented They radiate positive energy - cheerful. Pleasant, happy, optimistic They believe in other people They lead balanced lives

• • • •

read best literature Keep up with current affairs they are not extremists

they can feel their own worth They exercise for self renewal

• they regularly exercise the four dimension of human personality • physical • mental • emotional • spiritual
They see life as an adventure They are synergistic Source of Powers for Leaders Coercive Power Power dependant on fear Reward Power Opposite of coercive power Legitimate Power Derived from organization structure – i.e. as a result of position Expert Power Special skills, knowledge Referent Power When people want to identify themselves with a person they consider desirable Leadership Styles Autocratic-Leader Centered Consultative-Team Centered Participative-Individual Centered

• • • • •

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L E A D E R S H I P Definition Leadership is the ability to inspire others to seek defined goals and objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals. It is the quality of behaviour in individuals by which others are drawn to accept their guidance. A leader is one who exercises influence over others. He or she is a person with the ability to influence the behaviour of others in a given situation. Leadership and Management Managers by definition are expected to lead by virtue of the positions they hold in the organisation. Thus term ‘manager’ and ‘leader’ are sometimes used synonymously. Organisation depend to a larger extent on the leadership quality provided by managers: they are expected to motivate or inspire people to put in their best. In addition it involves getting people committed to the organisation’s mission or vision. Functions of Leaders in Organisations • Crafting path for the organisation; giving direction to the organisation • Communicating information and giving advice • Monitoring performance and giving feedback • Establishing basic values for the organisation • Clarifying and solving problems • Administering rewards and sanctions • Making decisions • Representing the group to others Thus there is an overlap between management and leadership. Qualities of Good Leaders • Commitment: self dedication to a cause, enthusiasm, determination and serving as role model • Courage: ability to stand difficult and dangerous situations • Foresight: ability to ‘see’ things before they happen • Human Relations: empathy; putting oneself in position of the other.

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Credibility: having a good track record Integrity: having good moral standing Intelligence: ability to think quickly and correctly; reasoning power Decisiveness: ability to stand by his or her decision Emotional stability: able to control one’s temper Visionary: ability to create picture of what the organisation should be in future • Self-confidence: being sure of what one is doing • Capacity to admit error • Honesty: being trustworthy • • • • • • Sources of Power for Leaders Power is the ability of an individual to control or influence others. A person has power over you only if he or she controls something you value. Coercive Power This is power dependent on fear. One reacts to this power out of fear of the negative results that might occur if one failed to comply. It rests on the application or threat of application of physical sanctions such as infliction of pain; generation of frustration through restriction of movement etc. For example a person goes into the bank, holds a gun to the teller’s head and asks for money; the teller will comply out of fear of losing what his or her values most - life. In the organisational context, one has coercive power over the other if they can dismiss, suspend or demote someone assuming that the other person values their job. Reward Power This is the opposite of coercive power. People comply with the wishes or directives of another because it produces positive benefits. The reward can be anything that one values - money, promotion, favourable appraisal etc. Legitimate Power In the organisation this power is derived from one’s structural position. This is the power one has as a result of his or her position in the formal organisational hierarchy. It embraces acceptance by members of the organisation of the authority of a position.

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Expert Power This is the influence wielded as a result of expertise, special skill or knowledge. Physicians, lawyer, engineers etc have expert power. So we follow their advice. Referent Power This is power exercised as a result of one wanting to identified with a person who they consider to have desirable or unique person traits. If I admire and identify with you, you can exercise power over me because I want to please and be like you. It develops out of admiration of another and a desire to be like that person because of the unique characteristics they possess, e.g. oratory etc. It is much like charisma. If you admire someone to a point of modelling your behaviour after them, then they possess referent power over you. Referent power explains why celebrities are paid millions to endorse products in commercials. When you possess something that others require, but you alone control, you make them dependent on you and gain power over them. If something is plentiful, possession of it will not increase your power. HO 3.2 Leadership Styles There are basically three types of leadership styles reflected by way of making decisions. 1. Autocratic Style: Leader-centered

The leader or manager makes decisions and imposes them on subordinates. All the power is centralised in one person who enjoys issuing order and directives. There very little teamwork and association with subordinates. This is the militaristic type of leadership. Here people simply do what they are told to do. Consequently there is no room for subordinates to use their creativity. People will be working in fear and in the process may be making a lot of mistakes. This style of leadership is appropriate in emergency and crisis situations.

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2. Democratic Style:

Team-Centered Here decision making is shared between the leader and the subordinates, but the leader has the final say. The leader uses subordinates ideas and opinions constructively. Criticism and praise are giving objectively. When however the leader is forced to make a decision without consulting subordinates, he or she explains to the group. Because decision making is shared, it is ‘owned’ by all. In addition, because of the participatory nature of the democratic style, there is a feeling of belongingness.

3.

Laissez-faire: Individual-centered This is a ‘free for all’ style of leadership. The leader allows group members to do as they please. Decisions are made by whoever is willing in the group. The leader only provides information, but does not take responsibility.

Reference Material
1. Busines Environment P. Diwan, Excel 1996 2. A Manual of Business Opportunity Identification, J.B Patel 1995

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3 Team Building Session rationale The importance of team work in any undertaking is well understood and yet how effective this collection of individuals work.1. how it feels about its accomplishments and about itself is often left largely to chance Learning objectives At the need of the session. norming and performing • Outline the characteristics of an effective team to include. the term team.1 and discuss i.3. ii. Divide trainees into small groups and let them discuss the difference between a team and a group of people working together Show TR3. storming. trainees will be able to: • Define a team • Outline the process of team building • Relate team building to entrepreneurial process Learning outcome • • • The term team defined Team building process outlined Team building related to entrepreneurial process Activities Ensure that the learning activities include the following: • A generic explanation of a team . equal participation in problem and decision making process Methodology: Lecture and Focused Discussions Tips 1. 2.A collection of individuals who have come together for a specific common purpose • Outline the team building process – forming. having a common goal. 187 . the differences between a team and a group. gate keeping skills.

Their continued effort are supposed to produce a given product/service • A Team is a group of people who feel energized by 1. fully committed to high level of output 3. ability to work together 2.2 and discuss the stages of team development TR3. iii. a group can generate solutions to problems that are a far superior to those that are developed individually by its members Characteristics of a winning Team • Strong commitment to the achievement of organisation goals • Open and frank communication 188 . characteristics of a winning team Show TR 3.3.1 Team Work What is a Team? • A collection of individuals who have come together for a specific common purpose. care about how each member feels during work process The Difference between a Team and a Group • Membership The members of a team are identified as such • Goals The team knows what its objectives and goals are in terms of work it has to do. and in terms of the sort of team it wants to be • Interdependence Individuals alone would not be able to achieve the goals • Collaboration Members continuously help and support one another • Identification Team members think in terms of ‘we’…instead of ‘I’ Teams as Synergy Concept • Synergy is the force that makes the whole greater than the sum of its individual parts • Through effective team work.

by imposing their authority inappropriately What the team leaders should do • get to know the balance of skills in the team • examine the team’s objectives and targets • work to establish trust and openness within the group Storming Temperamental and attitudinal differences begin to appear .the desire to make an immediate impact.2 Stages of Team Development Forming • in the early stages. but not confrontational about their differences • help them see differences positively • ensure high level of discussion and debate around contentious issues Norming Stage Team members begin to work out ways of working effectively together 189 . the team leaders and members need to get used to each other.• • • • • • • • • Actively listen to each other a climate of trust and understanding is developed All members of the team participate in problem solving and decision making process Member have gate keeping skills to ensure involvement of the whole team Team members confront each other’s assumption in ways that do not close further discussion they are wary of reaching agreements premature conflict is regarded as healthy and a necessary part of the problem solving process conflicts resolved through negotiation and collaboration A cohesive bond exists between individual team members and a team as a whole TR3. Team leader should • encourage people to open. exploring their strengths and weakness • Common failing .at times translated into open conflicts.

support. joint problem solving • manage the boundaries between the team and the rest of the organisation Reference Material 1. Small Business Management – II.The • • • role of team leader is to: help the team develop ground rules about team behavior instigate regular progress review consolidate his / her own relationships with the groups in terms of accessibility. “The Open Learning Programme in Entrepreneurship” EDI 190 . decision making process etc Performing High levels of performance are achieved What should be done • provide the support the team needs • maintain open communication.

product concept. the firm’s ability to produce. promote. These are.wants. societal – marketing concept • A general discussion on the importance of marketing on the operation of an enterprise. trainees will be able to: • Explain the term marketing • Explain the five marketing concepts • Discuss the importance of marketing to an enterprise Learning outcome • • • The term marketing explained The five marketing concepts explained The importance of marketing to an enterprise explained Activities Ensure that the learning activities include the following: • A generic definition and explanation of marketing.1 Marketing Concepts Session Rationale Marketing is the performance by an enterprise of all the activities required in order to create. Emphasis should be on the need to identify the needs and wants of a customer and meeting these profitably 191 . This should include. customer satisfaction • A generic explanation of the marketing concepts.UNIT A3. Marketing is a nerve centre of any enterprise that can not be ignored Learning Objectives At the end of the session. needs . production concept.2 Marketing 3.2. need and want and. selling concept. marketing concept and. and distribute products in accordance with the present or potential customers’ demand.

if left alone. and the five concepts under which organisations operate i. – concentration is on achieving high production efficiency and wide distribution coverage L Assumption: Consumers are primarily interested in product availability and low price The Selling Concept L the consumers.e. the production concept. the product concept. performance of innovative features L Managers in these organizations focus their energy on making superior products and improve them over time – they are cough up in a love affair with their product and fail to appreciate the market The Production Concept L Consumes will favour those products that are widely available and low in cost. the selling concept. 2. Give a summary of your presentation Reading Materials TR 4. will ordinarily not buy enough of the organization's products 192 .1.1) 3.1 Five Marketing Concepts Product Concept L Consumers will favour those products that the most quality. Using a flip chart or transparencies discusses the meaning of marketing. This should be followed by a discussion on the marketing activities (TR4.Methodology: Lecture and Discussions Session Delivery 1. marketing concept and the marketing societal concept as shown in HO 4.

Product Planning – activities concerned with developing a product so that it satisfies the customer and enables the enterprise to use its productive capacity fully. and distribute products in accordance with the present or potential customers’ demand and the firm’s ability to produce. goals consist in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors The Societal Marketing L Organisation’s task is to determine the needs. discount structure applicable.aggressive selling and promotion effort L Assumption: The company has available a battery of effective selling and promotional tools to stimulate buying Marketing Concept L The key to achieving the org. This definition is dealt under the following headings: Marketing activities Market Research – activities concerned with obtaining marketing information. It is necessary to find out the facts about the market so that decisions can be based on factual information and not on guesswork. wants. level 193 - - .– the way forward. Pricing – activities concerned with determining the price of the product on the basis of costs as well as market factors such as distribution channels used. and interest of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves the consumer’s and the society’s well-being HO 4.2 MARKETING ACTIVITIES Marketing – is the performance by an enterprise of all the activities required in order to create. promote.

ability or willingness of customers to pay. - - Principles of marketing management Active attitude – enterprise must have an active attitude towards the market. Advertising – activities concerned with making the product known to the customers and creating demand for it. production and finance. making the product available and easy to buy. statistics and applied psychology. Importance – second principles is that the management of an enterprise must recognize that marketing should be given at least as much importance as other basic managerial functions such as administration. 194 .of prices of competitors products. Marketing Strategy Marketing Strategy – is the art of selecting the appropriate market techniques. Management must actively study the market. Sales promotion stimulates demand and increases sales. and so on. Distribution – activities concerned with distributing the product from the manufacturer to the customer. - Marketing Techniques The management is required to control the application of a range of skills and techniques in marketing generally derived from practical industrial experience and from modern social services such as economics. persuade customers. Usually sales promotion moves the product towards the customer. promote the produce and organize distribution. Advertising brings the customer to the product. It cannot expect customers to buy a product simply because it is produced. Sales Promotion – activities covering all aids to sales other than advertising.

1997 195 . A market can be created by increasing the present volume of sales 2.Choice of techniques depends on: type of product size of the firm market resources of the firm Creating a market The proper and active use of marketing techniques provides the possibility of creating a market for example: 1. Prentice Hall India. Creating a market can involve creating a demand that did not exist at all. Reference Material Marketing Management. Creating a market can mean waking up a sleeping market 3. Phillip Kotler.

3.1 and discuss the Marketing Plan process 2. this session will seek to address how an effective plan can be developed Learning objectives At the end of the session.2 Marketing Plan for an Enterprise : 60 Minutes Session Duration Session Rationale A marketing plan is a central instrument for directing and controlling marketing effort in an enterprise.2.2 (individual exercise) and let each trainee come up with a marketing plan for their projects 196 . Show TR 5. Enterprises that want to improve their marketing effectiveness and efficiency must learn how o create and implement sound marketing plans.1 and distribute HO5.1 and discuss the content of a Marketing Plan 3. Therefore. trainees will be able to: • Outline the process of marketing plan • Apply a marketing plan to an entrepreneurial process Activities • • Ensure that the learning activities include the following: An outline of the marketing planning process which should include an analysis of market opportunities selection of a target designing of marketing strategies and programmes and the implementation Lecture and Discussions Methodology: Session Delivery 1. Show TR5. Administer HO 5.

For example. Market research is an indispensable marketing tool in this regard.Reading Materials TR 5. profitability and risks Designing the marketing strategies: The third stage is the adoption of appropriate marketing strategies. place. product.1 The Marketing Plan Process • • • • • Analysing Market Opportunities Researching and selecting target markets: Designing the marketing strategies: Planning marketing programmes Organising. This requires estimating the market’s overall size. There is need to know how to measure and forecast the attractiveness of nay given market. implementing. In order to do so there is need to operate a reliable marketing information system.1 The Marketing Plan Process Analysing Market Opportunities: The first task to marketing plan is to identify and analyse the long term market opportunities. marketing mix (price. This is accomplished by making basic decisions on marketing expenditure. growth. high price for a particular market target Planning marketing programmes: Marketing strategies should be transformed in to marketing programmes. These include product positioning and differentiating. Researching and selecting target markets: The second stage is to research and select target markets. promotion) and market allocation 197 . and controlling the market effort: HO 5. an enterprise could decide to offer high quality.

by whom. implementing. Project profit and loss statement: forecasts the expected financial outcomes 8.2 Individual Exercise • Develop a realistic marketing plan for your project Reference Material Marketing Management. Current marketing situations: presents relevant background data on the market. Objectives: defines the goals the plan wants to reach 5. In small enterprises. An entrepreneur must build a marketing organisation or effort that is capable of implementing the marketing plan. Action programmes: Answers. products. Phillip Kotler. what will be done. competition etc 3. and issues facing the product 4. Executive summary: present a brief overview of the proposed plan 2. This might not be the case with large enterprises were a team of marketers could be required TR5. one person can carry out all the marketing tasks. weakness. Controls: indicates how the plan will be monitored HO 5. Opportunity & issues analysis: identifies opportunities/threats.Organising. when and where 7. 1997 198 .1 Content of a marketing plan 1. Prentice Hall India. Marketing strategies: present broad marketing approaches to be used 6. strengths. and controlling the market effort: The final stage in the marketing process is the organising market resources and implementing and controlling the market plan.

trainees will be able to: • Define the term buying • Outline the buying problem • Discuss factors influencing the buying process Session Outcome • • • The term buying defined The buying process outlined Factors influential to the buying process discussed Activities 1. Show TR 6. Ensure that the learning activities included the following: A generic explanation of the term buying Outline the buying process at given below Discuss the factors influencing buying behaviour as given below Lecture and Discussions Methodology.3) 199 . Session Delivery 1.3.2. A discussion on the Buying Roles (HO 6.1) 4. End the presentation with a discussion on the five Stages of Buying Behaviour Process (as shown on TR 6.2 and discuss the Factors Influencing Behaviour. 2. 3. This should be followed by 3. Show TR 6. 4.3 Buying Session Duration Session Rationale This session will provide an opportunity to understand the influences that goes on when a customer decides to buy a product or service Session Objectives On completion of the session.1 and discuss the model of buying behaviour 2.

1 Model of Buying Behaviour Marketing Stimuli Product Price Promotion Place Other Stimuli Economic Technological Political social Buyer’s characteristics Cultural Social Personal Psychological Buyer’s decision process Problem recognition Information search Evaluation decision Post-purchase behaviour Buyer’s Decision Product choice Brand choice Dealer choice Purchase timing Purchase amount 200 .TR 6.

Decider: A person who decides on any component of a buying decision. in buying a car. a son might suggest a new car.TR 6. what to buy. Other products involve a decision. A family might suggest on the car to buy. Initiator: A person who first suggest the idea of buying a particular product 2. User: The person who consumes or uses the product Beliefs & attitude Psychological Motivation Perception Subculture Family Buyer 201 . how to and when 4.making unit consisting of more than one person. we can distinguish five role people can play in a buying decision 1. Influencer: A person whose view or advice influences the decision 3.2 Detail Model of Factors Influencing Behaviour Cultural Cultural Social Reference groups Personal Age & life cycle stage Occupation Learning Social Clas s Roles & Statuses Economic circumstance Personality HO 6. For instance. and women chose their dishes. Buyer: the person who makes the actual purchase 5.1 Buying Role For many products it is easy to identify a buyer. whether to buy. Men usually chose their shaving equipment. A husband might decide on a make. The wife might have different thoughts on the type of the car Thus.

TR6. Prentice Hall India. 1997 202 .3 Five Stage Model of the Buying Process Need Information purchase recognition search behaviour Evaluation alternatives Purchase decision Post Reference Material Marketing Management. Phillip Kotler.

right pricing is a prerequisite to a success of any enterprise Session Objective At the end of the session. define price as attaching of monetary value to a product or service 2. price and pricing A generic explanation of the importance of pricing to an enterprise Activities required to set price for products or services Lecture and Discussions Methodology.7 Session Duration Session Rationale PRICING 60 Minutes For any entrepreneur to have a return on his or her business.3. they have to make a profit. Using a flipchart or transparency. Session delivery 1. Therefore. Proceed to explain the importance of pricing as outlined in HO7. trainees will be able to: • Define pricing and price • Explain the importance of pricing in an enterprise • Set price for a given product/service Learning Activities • • • Ensure that the learning activities include a generic definition and explanation of the terms. One of the factors in the profit equation is the price.1 203 .

HO 7.0 Pricing Businesses make a profit by selling goods and services at a price that is higher than their costs. Profit is a result of the interaction between cost, volume and price. For instance, the volume of goods sold affects the cost per unit. If the volume increases, the fixed overheads are spread over more units and so, the cost per unit decreases. Cost is also influenced by price. Pricing is very important because it has a major effect on the volume sold and as a consequence on profit generated One of the major considerations of a pricing decision is the effect a change in price will have on volume sold. If price is reduced, by how much will demand increase? If price is increased will a large or small decrease in demand occur? A complete answer to these questions, if such an answer does indeed exist, will involve a number of different factors in the total marketing mix, but the basic microeconomic analysis of demand is the fundamental starting point. There are two extremes of the price/demand trade-off represented graphically below:

Price

0

Demand

Pricing Strategies Based on Costs
1 Total cost Pricing There are many different pricing strategies. Cost is one of the many methods and is certainly not universary used as a key method for pricing Cost – plus pricing involves adding a mark-up to the total cost of the product in order to arrive at the selling price. Un fortunately, because

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of fixed costs, the full cost of a product will be a function of the number of units produced, which in turn will be a function of the number of units sold. Yet sales quantity will be a function of the price charged for the product and so the argument is circular 2. Marginal Cost- Plus Pricing To an accountant marginal cost is the same as variable cost. Some of the reasons for using it in preference to total cost are as follows: • It is just as accurate as total cost-plus pricing. A large mark-up percentage is added because both fixed costs and profit must be covered, but the uncertainty over the fixed cost per unit remains in both pricing methods • Knowledge of marginal cost allows the possibility of pricing below total cost when times are bad, in order to fill capacity • It can be used very successfully to price specific contracts because it can be used to recognise relevant costs and opportunity costs as well as sunk costs. • It also recognises the existence of scarce or limited resources, the use of which by competing products and services need to be reflected in selling prices if profit is to be maximised.

Reference
1. Fundamental of Financial Management, J. H Horn, PHI, 1996 2. Management Accounting, CIMA, Cashmore C. & I Balachandra, 2001

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3.2.5

Market Research in an enterprise

Duration 60 minutes Session Rationale
The ability to scan the environment for business opportunities, ability to analyse the markets and offer a desirable package to the customer is very crucial to the success of any enterprise and, this can be achieved through a market research

Session Objectives
At the end of the session, trainees will be able to • Define market research • Outline the process of market research • Conduct a market research

Session Outcome
• • • Market research defined Market research process outlined Trainers able to conduct a research

Activities
• • • Ensure that the learning activities include the following: Generic explanation of market research – as a systematic way of capturing and analyzing data An outline of the research process from problem identification, research design, data collection and analysis and, report writing

Methodology: Lecture and Discussions Session Delivery
1. Through the use of flip cart or transparencies, define market research and explain the various uses of market research 2. Discuss the various types of research (census and inferential, pure and applied research) 206

3. Discuss the main stages of the research as given below. 4. A detailed discussion on the sources of data and data collection techniques should follow 5. Divide the trainees into small groups and let them identify a research topic and outline how they would proceed to conduct a market research

Reading Material
HO 8.0 Market Research Marketing Research: Many management decisions are made under the condition of uncertainty and risk, but the use of marketing research is one of the few highly developed areas where management research is scientific quality. This is so because markets re dynamic and competitive. Success often depends on control over markets Important decisions have to be taken frequently, and in order to make decisions with confidence, managers of enterprises need relevant and comprehensive information. It is the task of marketing research to provide this information Marketing research can be defined as, ‘the objective gathering, recording and analysis of all facts about a problem relating to the transfer and sale of goods/services from producers to consumers / users’. Market Research: is a concentration of one part of marketing research. It concentrates on quantifying information about potential sales. It is a study of markets. This may be carried out by the enterprise’s own staff or by an outside firm or specialists to find out the possibility of creating or expanding a market for a particular product/service Main Areas of Study • What is the potential market • what are the customers’ needs and wants • what is the enterprise's expected share of the market • what is the probable volume of future shares

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• • • • •

what is the geographical distribution of the market will consumers accept the product / service what features of the product do they want what is the appropriate packaging why do customers buy the product

In short, the market research will be used to discover: • Size of the potential market • the enterprise share of the potential market • date for the annual sales etc Product / Service Planning When planning for a new product or service, the market research will assist in: • providing data on whether the product is likely to sell and the most desirable features • carrying out an internal assessment as to the enterprise's capacity and capabilities I.e. technical and marketing skills required • considering the need for product improvement or development • considering the kind of packaging

TR

Steps in Market Research
1. Problem Identification and definition 2. Research Design: Establish the type and amount of information, Decide on type of data (primary or secondary), Determining data collection methods, sample size and techniques 3. Data Collection 4. Data Analysis 5. Report Writing Activity

Individual Exercise
Identify a market research topic and, outline how you would go about conducting the same market research

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Reference Material
Marketing Management, Phillip Kotler, Prentice Hall India, 1997

UNIT A3.3 3.3.1 Costing Session Duration Session Rationale

Cost and Price of Product/Service

90 Minutes

Determining what it costs you to produce a commodity is important because it acts as a basis upon which entrepreneurial decision could be made, for instance fixing of price, what wages and salaries to give and what profits to make. etc.

Learning Objectives
By the end of this module, students should be able to: 1. 2. 3. 4. describe the concepts of cost and costing place costs and costing into their correct classes apply to your business the various methods of costing a product fix the price of a product using the principles of costing

Learning outcomes
• • • The term cost defined Importance of costing explained Cost for given product calculated Lecture and Discussions

Methodology: Activities

Ensure that the learning activities include the following: • A generic definition of cost and costing • A generic explanation of the importance of costing to an enterprise • Techniques for calculations of various costs

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Session Delivery
1. Divide the trainees into small groups to discuss questions on TR 9.1 2. Follow the group discussion with a presentation of HO 9.1 to consolidate answers given by trainees 3. Let the participant answer and discuss question on HO 9.2 - an individual exercise 4. Give HO 9.3 as a supplementary material

Reading Materials
TR. 9.1 Group Exercise 1 1. 2. 3. What is costing? What is a cost? Your business has bought a number of things to use. List the cost of all these and add them together. How much money does your business have? Now that you know what your business has, what are you going to do to make it grow? Do these figures you have, show that your business has problems? If they, do what are you going to do about it?

4. 5.

HO 9.1 Costing Introduction Costing: Determining what it costs you to produce a commodity is important because you want to fix the price at which you sell that commodity. It also helps you in deciding: • how much of the commodity you should produce.

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• •

What aspects of cost you should control in order to reduce cost and increase the profits, and by how much you can change the price, costs and the amount you can produce if you are to get the profit you want.

There are a number of methods that you can use to decide the cost of a commodity. We discuss three of these methods in this module. These are: • absorption costing • standard costing • marginal costing Under marginal costing, we discuss the idea of breaking-even. This idea helps you in making important production and pricing decisions, and gives value of the stock (goods) in the organisation.

Cost Accounting is how you break into parts what you spend on the business.
You separate costs for each product or service which your business supplies to the customers. Management Accounting is a term that we use to describe the reports that we prepare for management from time to time. We base these reports on cost accounting. Costing is the classification, recording and appropriate allocation of expenditure for the determination of the costs of products or services. Why do we do costing? We do costing because we want to: • Provide information which we can use to make good decisions • Have basic information which we can use to do pricing, budgeting and tendering. • Monitor and control expenditure in the organisation. • Give value of the stock (goods) in the organisation.

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2 Individual Exercise 2 1.2 Parts of a cost Costs of a product have four main parts. 6. Using your business as an example. Subtract the total cost of expenses from the total amount that you make from your business. we use grain flour. Which costs can you control easily? 8. 9. Are you making a profit? 7. milk. What are your highest costs? 3. For example. Use the heading given above.TR. What are your lowest costs? 4. 2. in making bread. list all the costs that you manicure per month. Which costs can you not control? Why? HO 9. Direct material costs Direct material costs are associated with those materials which we use to produce a product. 212 . These parts are: • Direct material costs • Direct labour costs • Direct expenses • Overheads We are now going to discuss each in some detail. How much money do you get per month after selling your products? 5.

In the case of a bakery. They are the most important costs [prime] in an organisation. The costs of these materials are our direct material costs. and maintaining the service departments. 213 . Prime costs This is the total of direct labour. Examples are the electricity and the water that we use in making bread. Factory overheads These are the overhead expenses that come about as a result of the work that goes on in the factory. We get these costs for the benefit of the factory alone. direct materials and direct expenses. administrative expenses. Maintaining the service departments covers seeing that the boiler is working. yeast and oil as raw materials. In the short run. this relates to the salary of the supervisor. direct labour costs include the wages paid to the bakers making the bread and all the support staff directly involved in the baking. there is enough security and the buildings and machines are kept in working order. Direct labour costs Direct labour cost is what we spend directly on the workers who produce the product. production can only continue if the organisation can meet these basic costs. depreciation and maintenance of the bakery building and its security. These costs include rent. Overheads Costs that we cannot trace directly to the product come under another group called overheads. Direct expenses Direct expenses are directly associated with the product but we do not classify them under direct materials or direct labour. In case of bread.sugar.

among other things. The production cost is the total cost of producing the commodity in the factory. Administrative overheads include running the chief executive office and the salaries of departments such as accounts. Administrative overheads Every organisation spends money so that it can run efficiently. How can the knowledge of a product cost benefit the entrepreneur? 3. In your planned business what are your: • Primary costs? • Overheads? • Selling and distribution overheads? • • • 214 . advertising. For producing bread. The difference that we get is the net profit. The cost of comes under the cost of the support If the product sells at such a price that all these costs can be covered. Selling and distribution overheads The cost that we get in the process of taking the product to the customer comes under selling and distribution overheads. It includes the salaries of the sales personnel. this is all the cost that we get for producing the bread and leave it on the bakery floor.The total of prime costs and factory overheads come under production costs. Direct Labour + Direct Materials + Direct Expenses = Prime Cost Prime Costs + Factory Overheads = Production Cost Production costs + selling & Distribution Overheads + Administrative Overheads = Cost of Sales • Selling Price – Cost of Sales = Net Profit Activity 1. List the various classes of costs 2. cost of maintaining selling and distribution vehicles. we can then deduct the total cost of the goods sold from the sales. carrying out the running or administration of an organisation administrative overheads. Below is how to calculate the net profit. personnel and security.

10.1 Culture.10 Business Ethics and Values in managing an Enterprise 3. It covers the approach that one should adopt to establish the value system of your business unit. Divide the trainees into small groups and let them define the terms culture. Follow up with a discussion on how the three terms affect the operation of an enterprise 215 . values and ethics 2. Use a flipchart and collect all the answers given by group 3. Values and Business Ethics Session Duration Session Rational The session will help the trainees decide on the values and culture of their enterprises at the same time recognising that there are business ethics to be followed. Session Objectives: At the end of the session. business ethics and family on the operation of an enterprise Session Delivery 1.UNIT A3. trainees will be able to: • Define the terms culture. cultural values and business ethics • Explanation of the influence of cultural values. values and business ethics • Explain the influence of cultural values and ethics on an enterprise • Discuss the role of cross cutting issues in business Activities Ensure that the learning activities include the following: • A generic explanation of the terms.

A key factor in determining how effective an organisation is will be the appropriateness of its culture for its stakeholders. Managers usually face a lot of situations that require ethical judgements and. profession or individuals.1 Culture What is organisation culture? The importance of organisation culture: An organisation’ culture will influence its strategy. the question of what criteria these judgements will be based on is one that requires attention. and particularly its customers.1 as a Supplement to your discussion with handout 5. its way of doing business and the way it responds to change.2 Methodology: Lecture and focused discussions Reading Material HO 10. However.4. Give the trainees to go through self-assessment instrument HO 10. these could be some of the considerations: 216 . Administer HO 10. particularly so that there are no universally agreed codes of behaviour. A strong culture will be beneficial if it focuses on these elements and highlight the need to change proactively The main effects and characteristics of a strong culture is as follows. • It will strengthen behavioural regularities and norms amongst its members of the organisation • It will minimise some of the perceptual differences among people within the organisation • It will reflect the philosophy and values of the organisation’s founder or dominant group Some aspects of culture will be visible while many others will be invisible and more significant Ethics The term ethics refers to the code of behaviour considered correctly by a particular group.

These lighthouses with their powerful revolving search lights help ships to sea and find their way towards the shore even in darkness. provided you supply him sub-standard goods at low prices. He contacts a customer who wants to place an order with your firm. basic values of a company are like lighthouses on sea shores. Similarly. it means that your firm does not have clear idea of the values that it cherishes. but that you have taken care to convey these values to all the persons in the company. that would mean that not only your company has a clear idea of the values. as well as impartiality What are Basic Values? Suppose that you have deputed your marketing manager to a foreign country for scouting business for your firm. Your marketing manager. What is your marketing manager likely to do? He could do two things: ask you for guidance in the matter or may straight away tell the party that it will not be possible to accept an order for sub-standard goods even if the volume of sales is high and the profit margin is good. such as the freedom of speech and the right to a fair trial Decision makers should be guided by the principle of fairness and equity. If he rejects the offer for an order without talking to you first.• • • Decisions should be evaluated according to their practical consequences in bringing about the greatest good for the greatest number of people People have basic rights. When he asks for your guidance in the matter. values give direction to a company’s personnel and help them to take decisions that maintain and increase the company’s reputation in the marketplace. 217 . Thus. The sub-standard goods are likely to harm the health of the population in that country even though the value of order and the profit margin offered may be high. may also emphasise that to your firm the health and welfare of people is of prime concern and therefore it would not even dream of doing anything that could affect the health of people anywhere in the world.

and generators of innovations and treat them accordingly. Increase his pay and ask him to continue Scold him and tear off the resignation letter Any other approach What does your response indicate about your value systems for employees? 2. with customers.Values touch every aspect of business Though we have given an example of marketing decisions based on values. let us talk about relations with people within the company. A senior and loyal employee of your company who is also an expert in his field suddenly approaches you with a letter of resignation. Some companies treat people as disposable assets who can be hired and fired at will. How would you handle the incident? a) b) c) d) Find out where he wants to join. Consider the following situation:- 1. How would you react? a) Make effort to see that the customer accepts the goods even at a discount. with nongovernment organizations. Other companies look at people as valuable resource. etc. you must remember that values of a company encourage all vital aspects of a company’s functions.2 Self Assessment Instrument The following multiple choice questionnaire will help you to discover your own set of values. with competitors. An export consignment has been found to be defective by your foreign Customer. 218 . a storehouse of ideas. HO 10. a company could have a set of values when dealing with the government. For instance. Similarly.

A competitor is in trouble. d) Any other approach. 1998 2. 2001 219 . The party which markets your products is showing signs of slowdown. Ritson N & Marsden A. c) Take legal action to force the customer to accept goods. What does your response tell you about your value systems for customer? 3. b) Meet him to find out what his problems are. d) Any other approach. c) Begin to identify an alternative party for marketing your products. Encarta 98 Encyclopaedia. he is not marketing your products as vigorously as they had done earlier. What does your response tell you about your value system for dealers and distributors? References 1. CIMA. dispose off his unit. apologise for the inconvenience and assure him that a replacement will be sent immediately. d) Any other approach 4. What would you do? a) Blame him for slow movement of your goods. You have heard that he wants to How would you go about this matter? a) Send feelers for a buyout. Microsoft. Organisational Management. b) Spread word in the market about imminent closure of the unit c) Keep quiet till someone acquires the unit.b) Contact the customer.

trainees will be able to • Define strategic planning • Outline steps in strategic planning • Carry out a strategic plan Learning Outcome • • • Strategic planning defined Steps in strategic planning outlined Importance of strategic planning in an enterprise discussed Activities • • Ensure that the learning activities include the following A generic definition of strategic plan – ie a management process of developing and establishing a viable fit between the organisations’ objectives. and overcome short-term problems.1 Strategic Planning Process Duration 60 Minutes Session Rationale Today’s business environment puts pressure on entrepreneurs to complete urgent tasks. skills and resources and its changing market environment • • Outline the strategic planning process as give below Discussion of the importance of strategic plan to an enterprise Outcome 220 .8. This is operational or short-term planning – and it often tends to take precedence over long term planning – which is what strategic planning is all about Learning Objectives At the end of the session. meet day-to-day objectives.UNIT A3.8 Formulate Strategic plans 3.

Through a short presentation discuss the strategic planning process as given in HO 11. mission statement.2) 2.• • • Definition of strategic planning given Process outlined Importance of strategic plan to an enterprise discussed Lecture and Discussions Methodology: Session delivery 1.1 Reading Material Strategic Planning Process Vision Mission Statement External environment analysis External environment environment Analysis Goal Formulation 221 . define the strategic planning and highlight the main items the plan – vision. Through a short lecture. strategic objectives strategies and activities ( HO 11. Divide the trainees into small groups to discuss the role of strategic planning in entrepreneurial growth Tips: It will be important to include in your discussion the stakeholders’ analysis in strategic planning HO 11.1 3.

looking at where the organization is going. Without a strategy.2 The Importance of Strategic Planning Strategy concerns itself with what is ahead.Strategy formulation Programme / Action Formulation Implementation Feedback HO 11. A strategy is important whether you serve external customers (those outside your organization) or internal customers (those in departments or sections within the organization) An effective strategy should consist of the following: • Must be consistent with the organization’s skills and capabilities • Must exploit external trends and influences • Must be flexible enough to respond to rapid changes in the environment • Must incorporate carefully developed objectives 222 . there is still need for a strategy to make it happen Having a strategy enables an organization to ensure that day-today decisions fit in with long-term interest of an organization. and how to get there. Even if the organization already knows which products or service is taking to which market. A strategy also encourages everyone to work together to achieve common aims. Most organizations have strategic plans at highest levels but some do not communicate it all the way down. decision made could have a negative impact on future results.

what changes would you make to the organisation? 3. and dependencies on. Stakeholder Analysis Identify Stakeholders • Stakeholder interests /expectations. Internal Analysis i) Analyse organisation structure in terms of • Conduciveness to achieving the mission. other entities 2. Problem Agenda The problem agenda is a list of problem themes that provides focus for investigation into the external and internal environments of an organisation. of • Stakeholder major resources • Stakeholder sanction power • Stakeholder linkages with.• Must be based on care on carefully evaluated policies and plans THE PROCESS 1. what would you like to know about the future of organisation? iv) What things make you uncertain about the future of the organisation? v) If you were given the opportunity. and objectives of the organisation • Departmentalization • Number of levels International Aids Alliance how tall the structure is? • Centralization/Decentralization • Staffing levels of jobs 223 . i) What problems has the organisation inherited from the past that has a huge impact on its performance? ii) What important questions or issues lie ahead for the organisation? iii) If you were clairvoyant.

‘falling disposable incomes’ or ‘rising inflation’. Identify trends and possible future outcomes. reliability. personnel/HR management systems • Financial – sources. e.ii) iii) iv) Analyse the culture of the organisation e. qualifications. after processing them. transport. management.g. into • Opportunities – those that the organisation can capitalise on to enhance performance. and their distribution and management Analyzed management systems marketing. lean. management style. identify important i) political/legal. See attached extra information sheet. economic. technological/infrastructure and environmental factors and trends that impact on organisation’s performance. classrooms. strategic planning etc. equipment etc.g. accounting/financial planning systems • Material – vehicles. e. work ethic. 4. Strategic Options Generation These are actions that would • Eliminate or reduce internal weaknesses • Use strengths to limit external threats • Use strengths to take advantage of external threats 224 . social-cultural. Expressing these as variables wherever possible. capacity management.g. flat organisation structure iii) 5. internal practices/politics etc Analyse the organization’s Resources • Human – Numbers. and • Threats – those that hamper the organisation’s performance or growth Identify 10 critical success factors’ (Generic characteristics of an organisation that can succeed in an environment with the threats and opportunities identified above). ii) Separate these factors. External Analysis Keeping your problem agenda in mind.

CIMA. Organisational Management. Ratson N & Marsden A.• Create critical success factors Reference Material 1. Phillip Kotler. Marketing Management. Prentice Hall India. 2001 225 . 1997 2.

sales inventory etc Methodology: Lecture and focused discussions Session Delivery 1.5 3. This should be followed by a list of business records 2. production. Using reading material HO 12.1 prepare transparencies or flipchart and discuss the definition of records. End the session by discussing active and inactive records as the basis for keeping business records 226 . Discuss the importance of classifying records in record identification as well as need for indexing 3.5. marketing. trainees will be able to: • Define business records • List business records • Prepare business records for a given organisation • Keep records Session Activities Ensure that the learning activities include: • A generic explanation of business records • Listing of business records to include financial.2 Business Records Use of Business Records 60 Minutes Session Duration Session Rationale Records form a crucial aspect of any enterprise which should kept and used as and when require Session Objective At the end of the session.UNIT A3.

indexing. the owner takes full responsibility of the registry Some of the business record include the following: • Personal confidential files – usually kept by personnel department • Marketing files – pertaining to all marketing activities of the enterprise • Sales file • Financial files • Purchasing files • Stores files • Operation files Importance of classification of records • It eradicates the misfiling of documents • It reduces the chances for loss of documents • Quick retrieval of records Record Identification • Records that are brought under one subject can be identified by:• The use of reference numbers indexing system • NB. event Importance of Records • For future reference and use • Provide necessary input for decision making • An up-to-date record stores in a manner or form that provide speed retrieval there by promoting some levels of efficiency in an enterprise Registry is the nerve-centre of any business It is responsible for classification. Whatever the system being used.Reading Material HO12. it should be simple and easy to use Indexing / Referencing This can be done by arranging records or files :• By alphabet 227 . filling and supply of all records In small organisations.1 Records – defined as written down statements of facts.

post or rank By departments By numerical sequence with cross reference where necessary Active / Inactive Records Management The management of these two types of records depend on: How frequently these records are called for and as such.• • • By grade. Records Management. they have to be kept where they can be easily reached Reference 1. ZAMIM 228 .

1 Importance of Stock Control Session Duration Session rationale It is always important ensure that an enterprise has the right stocks at the right time all the time to meet demand as it rises an at the some time.6 Buying and Stock Control 3. trainees will be able to Define stock control Explain the importance of stock control in an enterprise Explain the relationship between buying and stock control Manage stock in an enterprise Session outcome • • • • The term stock control defined The importance of stock control in an enterprise explained Relationship between buying and stock control explained Trainees able to manage stock Activities Ensure that learning activities include the following • A generic explanation of stock and stock control • A generic explanation of the importance of stock control in an enterprise • A generic explanation of the relationship between buying and stock control • Trainees are capable of managing stock Delivery Methodology: Lecture and Discussions 229 .UNIT A3. maintaining a balance in terms of costs of keeping such stock 60 minutes Session Objective • • • • • At the end of the session.6.

Session Delivery 1. Operational requirement or needs of an enterprise 2.1 Stock Control Meaning Stock control is the means by which materials of correct quantities and quality are made available as and when required with due regard to economy in storage ordering costs and working capital This is generally done through the process of determining in advance – Requirement of materials taking into account existing stock.1) 2. When to order? This is governed by lead time between placing and order and receiving it 230 . delivery time and consumption so that the amount of stock on hand at any time will be sufficient to meet operational requirements and in accordance with stock control policy Stock control is influenced by:1. Divide the trainees into small group to discuss and identify factors that influence stock control in an enterprise. The major objective can be summarised into three main questions: 2. Delivery lead time: The time it takes to place an order until materials are received 3. Cost of storage and ordering Objective of inventory control 1.2 Reading Materials HO13. Availability of capital 4. define and discuss the terms stock and stock control as presented in the reference materials (HO 13. The answers from this exercise should be along the lines given in the reference material 3. What to order? This is the assessment of the range of items to be held in stock individually and collectively 3. Let the trainees discuss and answer the question on HO 13. Using flipchart.

deteriorated or used items should be recorded separately • Items should be recorded in terms of normal unit of issues • The method of pricing should be shown on the stock taking sheet • Goods still under inspection should be recorded separately • Arrangements must be made to include in the total list of stock all items belonging to the business which are not in the premises 231 . This requires a balancing act between ordering cost and stockholding costs 5. This is done by accounting. Managing Stock in an Enterprise Stock taking and Stock checking This is the process of verifying the quantities balances of the items held in stock. How much to order? This is a system of determining the order quantities each time an order is paced. weighing and measuring all items in stock and recording the results Reasons for stock taking • To verify the values in the stock record • To reveal the possibility of fraud or loss • To reveal any weakness in the system for custody and control of stock • To determine the efficiency stock keeping method • To verify the accuracy of stock records • To facilitate preparation of the final accounts Types of stock taking • Periodical stock taking • Continuous stock taking Rules for Stock Taking • Appoint one person to control the whole process • While stock taking is in progress do not have the store house open to business • Have stock-taking sheets under the control of the controller of operations • Damaged.4.

2 Q. Stores Records. SADC 232 . National Grains Management Course ISTT. Describe how you will help him Reference 1. your friend has set up a business to manufacture wooden chairs and beds recently. He has come to seek your advice about the ways and means to achieve this. he has been asked by the bank to manage or reduce the levels of inventory in his business.HO 13.

If these enterprises were to survive in the continuous changing environment.4. trainees will be able to • Define the term finance • Discuss the role of finance in an enterprise.3. entrepreneurs need to develop necessary understanding and confidence to make full use of financial information Session Objective At the end of the session. But enterprises operate in a changing and competitive world.1 The Role of Finance in an Enterprise 60 Minutes Session Duration Session Rationale In many small enterprises. • Discuss the importance of good financial management Session outcome • • • The term finance defined The role of finance in an enterprise discussed The importance of good financial management discussed Activities Ensure that the training activities include the following: • A generic explanation of finance • A generic discussion of the role of finance in an enterprise as given in the reference materials • Methodology: Lecture and discussion 233 . financial management takes a low priority and financial planning and monitoring systems are often inadequate.

in an organised and considered way by establishing systems and procedures to bring about financial control • • • • • Why is financial management important for an enterprise • • • • It assist in efficient management of resources such as cash.1 and • define Finance and Financial Management • discuss the role of financial management to an enterprise 2. organising. When lifeblood has the correct mix of nutrients it nourishes and sustains the various parts of the body providing energy to achieve its mission In the some way. Show TR 14. Financial management is the lifeblood of an enterprise. sound financial management enriches the operation of an enterprise and helps run efficiently and effectively Financial management is about good use of resources available to an enterprise. Financial management involves: planning. Divide the trainees into small groups to discuss the importance of good financial management to a business. equipment. both internal and external.Session Delivery 1. controlling and reporting on organisation’s resources to achieve set goals. human and time It contributes to efficient allocation of resources It enhances accountability and transparency of enterprises’ affaires It guides entrepreneurs (mangers) to achieve objectives 234 . In practice it involves managing risks.1 Reference material FINANCIAL MANAGEMENT What is Financial Management? • • Finance is part of management as a whole. Capture their contributions of a flipchart paper TR 14. financing.

Basley. policies and procedure have to be introduced. Financial Monitoring: Providing the organisation has set a budget and as kept and reconciled its accounting records in a clear and timely manner.Some key concepts 1. and to deter errors and omissions in the accounting records. fraud or incompetence • Deviation from objectives • Waste of resources • Under-utilisation of resources Accounting Records: Every organisation must keep accurate record of all financial transactions that take place so that. as a minimum. checks and balances – collectively reefed to internal controls are put in place to safeguard the organisations’ assets. Financial Planning: The budget forms the basis for an organisations’ financial plan – a summary of all expected income and expenditure for a stated purpose and time frame 4. Internal Controls: Controls. it is then a simple matter to produce financial reports which allows manager to access the progress of the organisation 5. Financial control: At the heart of financial management is the concept of financial control. Nikoli & Gowe R. To achieve this. Moyer Krettowe W.C. Financial Accounting. There purpose is to deter opportunistic theft or fraud. Contemporary Financial Management. 235 .J 1996 3. Without proper financial control an enterprise is at risk of • Loss through theft. it can show how funds have been used. to aid accuracy Reference: 2. Accounting records can also provide valuable information about how the organisation is being managed 2 3. This is defined as “a state of affairs which ensures that finances of an enterprise are being properly handled”.

1 and disuses the financial requirement of an enterprise 2. HO 15. trainees will be able to: • State the source of finance • Explain the conditions for accessing formal sources of finance Session Outcome • • Sources of funds stated Condition for accessing formal finances explained Learning Activities Ensure that the learning activities include the following: • Statement of the sources of finance.2 and discuss the traditional sources of finance 3. which should include formal as well as informal • A generic explanation of the conditions for accessing formal sources of finances.2 Session Duration Session Objective Sources of Finance : 60 Minutes At the end of the session.1 236 . Show TR15. Show TR15. The fining from the field visit should be as presented in 4.4.3. In small groups ask trainee to carry out a field visit to the local financial institutions of their choice to identify obtain information on the conditionality of obtaining finances from them. Session Delivery 1. This should be half a day’s event.

Reading Material TR15. Most of the time this is not adequate 4. Trade credit is a form of working capital and is short term in nature 7.These are money lenders. Retained earnings. Trade credits. Loans from friends and relatives. Working capital may include cash in hand or at the bank TR15. These are funds required to start up a business 4. Usually no interest is paid on these finances 5. financing of credit sales. Personal savings. equipment and land 5. Working Capital. saving institutions such as insurance companies and commercial banks 6. machinery.These are usually offered by the suppliers of inventory which in the case of small enterprises manufacturing units means row materials. part of the finance generated by the business can be ploughed back 237 . This is for purchase of row materials. sometimes referred to as local capitalists (Kaloba) 8. leasing companies.1 Financial Needs for an Enterprise 3. paying wages and meeting unexpected emergencies. This ranks second in importance as a sour of finance. Start – up capital.If the business is doing fine.2 Traditional Sources of Finance 3. Unorganised capital. organised capital markets such as discount houses. Capital for expansion. This is requires particularly for the purpose of acquiring fixed asset such as buildings.

Informal Sector Business Activities in Lusaka Urban District. 7. 8. Tolosi M.1 Conditions for accessing formal finances 4. 5. 6. Kani F 1985 238 . 1997 Financial Assistance to Small Scale Industries.S & Nawiko M. 2.HO15. Need for collateral and securities prohibitive interest rates stringent pay back periods stringent process with a lot of decimations At times loans can only be given to a group as opposed to an individual Reference 1.

3. trainees will be able to • Define the term financial statement • List the various financial statements in an enterprise • Explain the importance of financial statements • Interpret financial statements Learning Outcome: The term. balance sheet and cash flow statement 2. ‘financial statement’ defined • • • Various financial statements listed Importance of financial statements explained Various financial statements interpreted Learning Activities • • • • Introduce the session by defining “financial statement” using flip chart paper List the three main financial statements and explain the components of each statement Highlight the importance of each financial statement Supplement your discussion with the distribution of HO Training Methodology: Lecture and Discussions Session Delivery 1.3 Financial Statements Session Rationale Learning objectives: At the end of the session.4. Distribute HO and discuss the importance of financial statement to an enterprise 3. Show TR and define the term financial management and discuss the main financial statement (income and expenditure account. Take the trainees through exercise A and B and let them tackle exercise c an individual exercise 239 .

liabilities. assets. and financial analysts. employees. • All income not yet received but belong to that financial year • All payments not yet paid but belong to that financial year 2. Income and Expenditure Account It is produced from either the trail balance or on receipts and payment accounts. The balance Sheet This is the listing of all the assets and liabilities on one particular date and provides a “snap short” of the financial position or net worth of an enterprise. It records as a summary • All categories of income and expenditure which belong to that year. Specifically. These parties are concerned that the statements present a fair and accurate picture of a company’s financial position (i.Reading Material HO Financial Statements In business language.e. This report is of much greater relevance to a profit motivated enterprise where cash flows and investments are crucial to the enterprise’s performance and survival Accuracy of Financial Statements The financial statement s of a company are examined by various parties. The Cash Flow Statement The Cash Flow Statement explains where the funds came from and how they were applied during the reporting period. three are three major reports: • income and expenditure account (or profit and loss account) • balance sheet • cash flow statement 1. government agencies. including shareholders. 240 . It is prepared on the fundamental relationship in accounting. bondholders. banks. every addition to an organisation’s asset is financed by either outside parties or by the owners 3. suppliers. that is. the accounts imply a set of reports or financial statements which show the financial standing of an enterprise.

J 1996 10. Basley. Contemporary Financial Management.earnings and cash flows). Financial Accounting. 241 . Moyer Krettowe W.C. Nikoli & Gowe R. Most companies hire external independent auditors to attest that the financial statements reflect the financial position of the company Reference: 9.

3. sales • Outline of the selling techniques Methodology: Session Delivery Lecture and focused group discussions 1. Show TR17. the trainees will be able to: • Define the term.1 and define selling 2. This should be flowed up with a discussion of TR 17. Show TR 17.4 and discuss the “Role of Sales Force in an Enterprise Promotional Efforts”.2. cost of sales and types of sales Reading Materials TR17. sales volume. the ability to communicate something of value to someone is a key to succeed in business Session Objectives At the end of the session. Show TR 17. sales • Prepare a sales plan • Sell good and services Learning activities Ensure that the learning activities include the following: • A generic explanation of the term. The plan should include. 4.4 Selling 60 Minutes Session Duration Rationale The ability to use personal communication kills effectively to persuade someone to act by buying something and.3 “To buy or Not to Buy” 3.2 and discuss the ten steps in sales process. Divide the trainees into small groups to prepare sales plan for their project.1 242 .

Selling: • Personal communication of information to prospective customer to buy something • Involves a person helping another person • Involves communicating between buyer and seller persuade a TR17.2 10 Steps in the Sales Process Prospecting Pre-approach Approach Presentation Trail close Determine objectives Meet objectives Trail close Close 243 .

3 To Buy or Not to Buy Sales persons should consider the flowing questions before developing a sales presentation • • • • • • What type of product is desired? What type of buying situation is it? How will the product be used? Who is involved in the buying decision? What practical factor will influence the buying decision? What are the buyer’s important buying needs TR 17. Enterprise use salespeople in many ways. How much selling effort is needed to gain and hold a customer? 2.4 The Role of the Sales Force in the Enterprise Promotional Efforts A major marketing issue for an enterprise is to determine the sale force’s role. Is the sales force the best marketing tool. What type of sales activities – for example. Can the enterprise gain strength relative to its competition with its sales force? 244 . technical assistance. there are four basic questions used as a guide in defining the roles of the sales force: 1.Follow-up TR 17. However. compared to advertising and other sales promotion? 3. frequent or infrequent sales calls – will be necessary? 4.

Diwan P. Kotler P. 2. Excel 1997 Marketing Management. Business Environment. 1991 245 .Reference: 1.

4.1.2 as individual exercise 246 .1 and discuss the budgeting cycle with a view to identify the steps in budgeting 4.4 Duration Rationale Budgeting 60 Minutes In every business there is need for planning of the various activities. Capital budget and Cash flow budget and explain the relevance of each to an enterprise 3. Show TR17. Introduce the session by defining a budget as given on HO 17. List the three main types of budget. One such tool that is used fro planning purposes is a budget Session Objective At the end of the session. this should be followed with an explanation on the functions and benefits of a good budget 2. Income and expenditure budget. Give the trainees TR 17. trainees will be able to: • Define budgeting • Explain the importance of budgeting • List the various types of budgets • Outline steps in preparing a budget • Prepare a budget Learning Activities Ensure that the learning activities include the following • A generic explanation of budgeting • A generic explanation of the importance of budgeting • List of different types of budgets • An outline of the steps in budget preparation Training Methodology: Lecture and Discussions Session Delivery 1.3. process and procedures.

it is a financial planning tool which quantifies the activities of an enterprise in a given period • Financial statement – to demonstrate an enterprise’s viability and credibility for a given period of time • Fund-raising aid – provides important information for grant application • Financial control – sets limit of authority in committing the enterprise’ resources • Financial monitoring – it allows comparison of actual income and expenditures Benefits of Budgeting • Planning • Enhance managerial perspective – i. It is describes an amount of money that an organisation plans to raise and spend for a set purpose over a given period of time Functions of a budget • Financial planning . usually for one year.e. increases awareness of the environment in which the enterprise operate in • Advance warning of problems • Coordination of activities • Performance evaluation • Promote ownership and motivation 247 .1 Reading Materials What is a Budget? A budget is a plan.HO 17. which shows how an organisation intends to acquire and use resources to achieve a set of objectives.

Capital budget 3.1 The budget Cycle • Preparation: This involves giving thought to the targets and associated resourcing requirements for the next year • Collation: This ensures that activities of the budget are consistent with the enterprise’s needs • Authorisation: this involves actual allocation of resources to each item of the budget • Implementation TR 17.2001 248 .Types of budget 1. Cash flow budget TR 17. What is the principle budget factor? Reference 1. How does the budgetary process assist in communication? 3. Income and expenditure budget 2. What are the benefits to be gained from budgeting? 2. CIMA. Cashmore & Balachandra I.2 Individual Exercise 1. Describe the major steps in the budget process? 4. Management Accounting – Decision Making.

duties and responsibilities that are relevant for the objectives must be specified. Functions. promotion and the like Session Delivery 1.1 ROLE OF HUMAN RESOURCES IN AN ENTERPRISE Session Duration Session Rationale Any enterprise.1 and define and discuss’ Human Resources Management’ 2. trainees will be able to Define the term. The functions of staff management – which the human resources management.7.2 and discuss the functions of human resources management 249 . Show TR18. Show TR18. has the overall objective of ensuring that the enterprise attains its objectives by properly utilising its human resources 60 Minutes Objectives • • • At the end of the session. motivation. staff recruitment. All activities in an enterprise are then expected to be organised in such a manner as to achieve the set objectives.UNIT A3. staff selection. big or small needs to have clear objective both in the long term or short term.7 Managing Human Resources 3. human resources Explain human resources practice in an enterprise Activities Ensure that the learning activities include the following: • A generic explanation of the term. human resources • A generic explanation of human resource practice in an enterprise to include.

3. utilisation improvements and retention of an enterprise’ human resources. but taken together. a picture of the main characteristics of this approach to employment management emerges.3. Distribute HO 18.4 as the possible answers to the question 5. During the discussion. emphasising the need for ever high levels of achievement to meet new challenges The list above is best regarded as prescription how people management should be conducted The Human Resource Plan: This is a strategy for acquisition. 4. distribute TR18.1 Human Resources Management What is Human Resources Management (HRM)? There are many different versions of the meaning of HRM.1 as supplementary reading material Reading Materials HO 18. . The summary is as follows: • It is a top management driven and management-orientation activity • It can take either a ‘hard’ form or a ‘soft’ form. Divide the trainees into small groups to answer and discuss question on TR 18. The plan is based on the following questions: • What has to be done to attain the objectives of the business? • Who is responsible for the various stages of the plan? • When will thee stages have to be completed? • How will they be accomplished? The determinants and contents of human resources plan: • Organisational growth rate • Technological and productivity changes • Skills requirements • Training requirements • Recruitment 250 . The hard form is the one where employees are considered just as another resource like capital or land while the soft form regard employee as the most crucial resource in the business • It is a performance oriented.

promotion and succession planning • Natural wastage • Strategic objectives of the enterprise TR18.2 Functions of Human Resources Management Planning manpower requirements. The hard form is the one where employees are considered just as another resource like capital or land while the soft form regard employee as the most crucial resource in the business It is a performance oriented. I. determine the organisation’s structure and manpower needs to effectively meet the enterprise’s requirements C) Staffing: To ensure that new recruits are provided with appropriate training and information to enable them perform their duties effectively. recruit Organising the manpower resources.e.e. anticipate vacancies. I.1 What is Human Resources Management (HRM)? • • It is a top management driven and management-orientation activity It can take either a ‘hard’ form or a ‘soft’ form. emphasising the need for ever high levels of achievement to meet new challenges • TR18. provided the need exchange of information throughout the enterprise Develop effective work regulations and harmonious working relationships Develop effective performance evaluation systems A) B) 251 . Also concerned with promotions and transfers D) Motivating: to set Kwacha values on job positions that are fair and equitable when compared with other positions Provide facilities for employee’s enjoyment.• Development.

TR18.3 Exercise What are employee’s expectations from an enterprise? HO18. EDI. GRZ 252 . CIMA.4 Possible answers of the question • • • • • • Employees want to be treated courteously To be welcomed to their new jobs Simple and intelligent instructions Recognition of their importance Realistic recognition of a job well-done Prefer working for an organisation where confidence prevails in the ability and fairness of top management Reference: 1. SADC. ISTT. Ritson I & Marsden A. Open Learning Programme in Entrepreneurship. FNSt 3. 2001 2. Managing Staff. Small Business Management – II. Organisational Management.

UNIT A3.2 Enterprise and technology 3. The creation of competitive condition will create both the pressure and the incentives to make enterprises competitive. And one way in which this could be achieved is by being steps ahead in product / process innovation and inventions Session Objectives • On completion of the session. The discussion should lead into the discussion of the importance of technological innovation national development 253 . trainees will be able to: • Define invention and technical innovation • Explain the importance of invention and technical innovation to national development • Outline the patent process • Discuss the barriers to commercialisation of inventions and technological innovations Tips Make sure you are familiar with the patent process in Zambia Methodology : Lecture and focused group discussions Session Delivery 1.9. Using flipchart of transparencies define invention and technical innovation as given on HO 19.2 Invention and Technical Innovations Session Duration Rationale : 60 minutes Competition is both a necessary and sufficient conditions for achieving competitiveness.1.

The response from the trainees should include: • none supporting government policy. Divide the trainees into small groups to read and discuss questions on TR 18. Using a flit chart or transparency.is the transformation of creative ideas into useful applications by combining resources in new or unusual ways to provide value to society for or improved products.1 Technical Innovations / Invention • Innovation: the introduction of process or product that is new to a particular situation. discus the patent process 3. • bureaucracy. or services. • lengthy patenting process • Piracy Reading Materials HO 19. technology.1. regardless of whether it has been used before elsewhere All modifications or adaptations of a process or products that are new to the economy – however minor they may be Innovation could be said to be coming up with new ideas upon which inventions could be done The difference between invention and innovation is: o Invention . “Barriers to Commercialisation of inventions / innovations”.2. costly and. o Innovation .is the creation of new products. processes. • • • Innovation activities include: • Search activities to determine the range of available process and product variants and selection for the range • Minor or major adaptation of production techniques and products • Development of techniques and products 254 . and technologies not previously known to exist.

Less frequently. The process of invention is invariably preceded by one or more discoveries that help the inventor solve the problem at hand. anything produced by humans that is new and unique is an invention. or procedures useful in accomplishing human objectives. thereby not allowing for more time for innovation activities • Too much emphasis on minor product change at the expense of fundamental technological innovations Innovation Specialisation and Initial Endowments • Development of skills required for innovation usually require formal education and training • Accumulated experience or learning by-doing is by far the most effective way Invention Invention. the term invention is applied to a new procedure. and the term inventor is applied to a person who has produced a new device or material. ideas. In common usage the term invention is applied only to the production of new materials or operable devices. such as the invention of the lightning rod by Benjamin Franklin after he proved that lightning is an electrical phenomenon. Under strict definition. this definition was recognized by Johann Sebastian Bach. A discovery may be accidental. thus a person may be said to have invented a new game or a new system of accounting.The Process of Innovation • Possible basic scientific discovery • Applied research • Experimental development • Initial commercial application • Improvements Problems of Innovation in Development Countries • There is a tendency to focus on market forces alone as a basis for innovation activity • Planning horizons for individual enterprise is shorter. who gave the title Inventions to a series of his short keyboard compositions. such as the discovery of x rays by Wilhelm Conrad Roentgen while he was experimenting with cathode rays. however.creation of new devices. or induced. objects. 255 .

may be protected by patent. The names of the great archaeological ages—the Stone Age. but the purposes they served—protection and food gathering—were instrumental in humans' growing domination of the earth. that person may be eligible for a new patent or copyright. The period of recorded history began with the invention of writing. but since the advent of printed books. sculpture. the development of simple political systems. any new and useful art. if a person alters an invention and thereby improves or changes it. cannot be legally protected. or material. and photographs may be protected by copyright. and writing as a means of mass communication became important with the invention of movable type in the 15th century. Early stone implements were crude. Early Inventions The earliest artifacts show evidence of human inventiveness.In most countries. machine. 256 . In the United States and indeed Zambia. and the Iron Age—are derived from the inventive use of stone and metal implements (see Archaeology). Invention proceeded steadily throughout the period of written history. These include the invention of crude tools. paintings. music. and the invention of the wheel. Patent and copyright laws do not provide coverage for all inventions. The protection afforded by this legal recognition is limited. the ability to produce and control fire. manufacture. certain classes of inventions are legally recognized. written material. the ability to make pottery. such as psychological concepts useful in advertising. and their use is temporarily restricted to the control of the inventor. Many processes and ideas lacking clear-cut characteristics. the Bronze Age. Many of the most significant inventions and inventive developments occurred before the period covered by written history. the development of speech. the cultivation of plants and domestication of animals. in many cases. or any new and useful improvement of these. people all over the world have been able to obtain records of the discoveries of the past for use as a basis for further discoveries and inventions. the development of building techniques.

1 Barriers to Commercialisation of inventions / innovations Identify and discuss commercial barriers to invention / innovations in Zambia? Reference: Encarta 98 Encyclopaedia . Microsoft 1998 257 .TR 19.

Session Rationale Technology has become an increasingly important dimension of economic growth.1 Technology in an Enterprise 60 Minutes Session Duration .9. The extremely rapid development in this are in the last few decades is unprecedented in their speed in and impact on production structures of an enterprise with consequence effect on economic growth and income distribution Technology in the development of small sector industry has become issue. identify and discuss sources of technology for their projects (HO 20.1) Lecturette and focused Group Discussions 258 .3. trainees will be able to: • Define technology • Identify sources of technology • Select suitable technology for an enterprise • Relate technology to an enterprise Learning Activities Ensure that the learning activities include the following: • A generic explanation of the term. technology • Identification of sources of technology • Criteria for selecting suitable technology for an enterprise Instructional Methodology: Learners Preparations Session Delivery • Show TR 20. A significant connection exist between scale of industry and technology Session Objective • At the end of the session.1 and define the term technology • Divide the trainees into small groups to read.

1997 3. 1997 259 . The Distorted Growth of Import Substitution Industrialisation. Productions and Operational Management. The questions to be asked are: • Does the technology support the goals of the enterprise? • Are the products / services o be produced affordable by. Bardwell.2 and discuss the criteria for selecting appropriate technology TR 20.• Shoe TR 20. cultures and environment. 2. Appropriate Technology. the processes and related arrangements compatible with the local environment and culture? HO 20. and useful an acceptable to. The Zambian Case.1 Individual Exercise What are the sources of technology for your business? Reference 1.2 Criteria for Selecting Appropriate Technology • The appropriateness of a technology should be considered in relation to goals of the enterprise. process. PHI. Seidman A. Everrette A. intended users? • Does production process make economic use of the inputs? • Are the products. the products.

1and let each participant identify tasks performed by women and those performed by men 4.1 as additional reading material 260 . Distribute Table 21. The definition should include an explanation on what gender is not 2. an appreciation of this cross-cutting is crucial to the promotion and success of entrepreneurship in the country Session Objective At the end of the session. Show TR 21.1 and define gender.2 and explain how gender can be integrated in an enterprise 3. Government all over the world have passed legislation that promote equality and protect women’s rights.10.10 Business Ethics and values in managing an Enterprise 3.UNIT A3. Gender has become a cross-cutting issue attracting a lot of attention from various sectors of the society. Therefore.2 Gender in an Enterprise Session Duration 60 Minutes Session Rational In realizing the glaring gender imbalances that exist between women and men. Distribute HO 21. gender • Integrate gender in the operation of an enterprise Learning activities • Ensure that the learning activates include: • A generic explanation of the term gender • How to integrate gender into the operation of an enterprise Methodology: Lecturette and focused discussions Session Delivery 1. participants will be able to: • Define the term. Show TR 21.

The following factors can shape and change gender roles: • Age • Class • Race • Ethnicity 261 .Reference Material TR21.1 GENDER IS • • • Social. Relationship between Men and women These relationship are Socially Constructed and Institutionalised Roles have been Shaped Historically and are due to Ideological Economical Religious Cultural Factors Gender Gender Gender Gender Gender is thus not Biological difference is a Social concept is different from sex – Biologic Concept is not a static concept can thus evolve and change according to Time Situation/Circumstance Culture • • • • • HO21. Gender roles vary considerably across settings and also change over time. tasks and responsibilities are perceived as male or female.1 GENDER ROLES Gender roles Gender roles are learned behaviours in a given society/community or other social group that condition which activities.

and community managing activities. productive. • Men primarily undertake productive and community politics activities Reproductive Role • These activities are usually unpaid • They are excluded from national employment and income statistics • They are viewed as activities with non-measurable economic value • Refers to child-bearing • Activities carried out in caring for the household members Productive Role • Work undertaken to produce goods and services for marketing • Includes processing of primary products • Can be performed at workplace and at home • They can be formally or informally organized Community managing role • Activities undertaken at the community level • This role is often an extension of their reproductive role • It is doe to ensure the provision and maintenance function of scare consumption resources e. fuel. e. position.g. either directly or indirectly • Benefit it terms of power. wood • This is voluntary unpaid work.• • • • Religion and other ideologies Geographical environment Economic environment Political environment Types of gender roles Concept of gender roles developed by Caroline Moser • Gender planning recognises women triple role: women reproductive.g. undertaken in ‘free’ time • Primarily performed by women Community politics role • Activities performed at community level. organizing formal meeting/informal gathering etc. knowledge • Undertaken mostly by men 262 . • Usually paid work. water.

RESPONSIBILITIES AND OPPORTUNITIES? • WHERE DOES THE OPPORTUNITY FOR CHANGE OR ENTRY POINT EXIST AND HOW BEST CAN THEY BE USED? • WHAT SPECIFIC WAYS CAN BE PROPOSED FOR ENCOURAGING AND ENABLING WOMEN TO PARTICIPATE DESPITE THEIR TRADITIONALLY MORE DOMESTIC LOCATION AND SUBORDINATE POSITION? 263 . Table 21. TASKS.1 Time Tasks done women 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 TR21. age and hierarchy • Age differences affect status of men and women in society • Existing hierarchical differences between men and women at the workplace result in unequal working conditions. between women belonging to different class and caste groups etc. • Gender patterns of labour vary according to sectors.Who does what? • Preparation of separate profiles if significant differences exist – can be between men and women.2 Tasks done by men HOW TO INTEGRATE GENDER IN OPERATIONS OF ENTERPRISES THIS CAN BE DONE BY GIVING ANSWERS TO THE FOLLOWING QUESTIONS: • DOES THE ENTERPRISE CHALLENGE THE EXISTING DIVISION OF LABOUR.

Gender Issues in Project Design (Paper Presentation) Kambobe T. Gender /Population Issues in Project Design and Management (Paper Presentation).• WHAT IS THE LONG TERM IMPACT IN TERMS OF WOMEN’S INCREASE ABILITY TO TAKE CHARGE OF THEIR OWN LIVES AND TO TAKE COLLECTIVE ACTION TO SOLVE PROBLEMS? Reference 1. Nyangu 1997 2. N.C 1999 HIV/AIDS AWARENESS NOT INCLUDED 264 .

138-04-A MODULE TITLE: ESTABILISHING AN ENTERPRISE UNIT A4. Business plan correctly described. desire to create.1 Importance of a Business Plan SESSION DURATION: 2 HOURS SESSION RATIONALE This session will enable learners to explain the different uses to which a business plan may be put in the process of establishing an enterprise. In this way the learners may perceive the need to prepare a business plan as the first step in establishing their enterprises. goal setting. 2.1. Learning Outcomes 1. and knowledge of business principles. LEARNING OBEJCTIVES On completion of this session.MODULE NO. Explain the importance of a business plan in establishing an enterprise. The session will also afford the learners an opportunity to reflect upon their own situation and how useful a business plan could be in establishing their enterprises. 265 . ENTREPRENEURIAL ATTRIBUTES The most relevant are motivation. 2. Importance of a business plan in establishing an enterprise correctly explained. Describe a business plan.1 Business Plan 4. the learner should be able to: 1.

The overall learning objectives and outcomes of the module. Ask learners to define the word “plan” and record the key parts on flip chart or board. 138. Now ask learners to extend this definition to “business plan”. if not indispensable. The structure of the Learner’s Workbook and how it is to be used.Leaner Activities / Environment Learners will brainstorm the meaning of business plan and come up to with a common description. Record the key parts on flip chart or board. Instructional Methodology 1. Learners will then again brainstorm the importance of a business plan in establishing an enterprise. focusing on: (i) The other five modules in Curriculum Chart No. From this activity will result a list of the uses to which a business plan can be put. (ii) (iii) • • • • • Introduce the session by reviewing the session objectives. Introduction • It may be helpful to start with an introduction to the entire module by reviewing the “introduction” in the Learner’s Work book. Learners will identify specific situations in which a business plan is very useful. Highlight the fact that most of the actions we take are preceded by planning of some sort or other written or unwritten. and the prior knowledge required to successfully complete this module. learning outcomes and the learning activities. 266 . Emphasise that it is vital for the entrepreneur to put his/her business plans on paper.

If the learners have workbooks. Write down your results on flip chart paper and present to plenary. 267 . Record the responses on flip chart or chalk board. including time. it states how the objectives will be achieved i. the required resources. Divide the class into groups of no less than three and no more than five.e. you may ask one of the learners to read to the rest of the class the narrative under unit 1. Make a brief presentation on what a business plan is and its importance. • • (i) (ii) (iii) • Time allocation for the exercise will of course vary from class to class but should be no more than 45 minutes. The presentation should highlight the following: (i) The description of a business plan has three key elements namely: it is a document i. head the discussion as each important point is read.1. If the Learner’s Workbook is available. (iv) Give an example of one use or role of a business plan in establishing an enterprise. (ii) The business plan is important in that it plays critical roles in the establishing of an enterprise. otherwise write down the following instructions on flip chart or chalk board: In your own words write down a description of a business plan. it sates the business idea. ask them to do Exercises 1a and 1b. List them in order of importance. written down. (iii) It has been observed that enterprises which are based on written plans tend to succeed more than those without written plans.e. goals and objectives.2. Main Activities • • • Ask learners why a business plan is important. List as many uses as you can of a business plan in establishing an enterprise.

During Learners’ presentations ask for feedback (questions. • Key points to note are: (i) Definition of business plan List of uses of a business plan in establishing an (ii) enterprise. Organise all materials needed for the session (markers. and any other literature. Prepare model answers for the definition of a business plan. and other enterprise management skills. Give your final overall feedback Conclusion • Ask Learners to identify the Key points that emerged from the learning experience and discussion. and the uses of a business plan in establishing an enterprise. Learners who may not have formally studied Modules 138 – 01 – A .e. chalk board accessories.• • • 3. Clarify issues arising from the presentation and from the other learner’s feedback. costing. 268 . • Ask them to state the general conclusions from the lesson. 138 – 02 – A and 138 – 03 – A should have at least covered similar content through other trainings. they will be required to draw upon their prior knowledge of entrepreneurial competencies and enterprise management skills. Trainer Preparation • Review materials on the importance of a business plan i. • • Trainer Tips Understanding the subject of the business plan requires prior knowledge business opportunity identification and idea generation. handouts). • Remind Learners that in the succeeding session on the business plan. Such Learners may require extra tuition. market research and planning. the section on “importance of a business plan” in the Learner’s Work book. comments) from the other learners. flip chart with stand.

(ii) Usefulness of business plan to Learners’ careers. “Entrepreneurship and Hampshire. Assessment Criteria and Methodology Criteria • • Business Plan Correctly described. 269 . (2001). Small Business”. New York. P. brainstorming and group/individual assignment) used.Reference Materials 1. Methods • • • Individual assignment Group exercise Tutorials Session Evaluation • Evaluation indicators – you can evaluate by collecting information on the following: (i) Effectiveness of training method (lecture. Burns. • (i) (ii) Evaluation Methods – You may apply the following methods: Interview the Learners as a group or individually. Palgrave Macmillan. The importance of a business plan in an enterprise correctly explained. Administer a questionnaire. (iii) Relevance of training material to the session (iv) Mastery of subject by the Learners.

Explain the contents of a business plan. Outline the contents of a business plan. 2.1. Learning Outcomes 1. 2. The session therefore lays the foundation for the Leaner to be able to prepare a business plan. Entrepreneurial Attributes The most relevant are motivation. The result of this activity will be a list and description of the contents of a business plan. Contents of a business plan correctly explained Learner Activities / Environment Learners will brainstorm the contents of a business plan and also their explanation. Learners will also be shown the usual format in which a business plan is presented. Contents of a business plan correctly outlined.4. Learners will therefore as well brainstorm and decide on the format (presentation) of the business plan. Learning Objectives On completion of this session. the Learner should be able to: 1.2 Contents of a Business Plan 3 hours Session Duration: Session Rationale This session will enable Learners to list and explain the contents of a business plan. and knowledge of business principles. desire to create. 270 . goal setting.

Make a short presentation on the contents of a business plan. it does have to have some bare minimum of contents in order for it to make sense. Record the responses on flip chart or chalk board. Explain to the Learners that depending on the nature of business and the target audience. • • • 2. Explain to the Learners that depending on the nature of business and the target audience. each business has to decide on the detail to be included in its business plan as well as the relative arrangement of individual elements within the format of the plan. Main Activities • • • • • Ask the Learners to mention the contents or elements of a business plan. Explain that. The key points to include are: 271 . learning outcomes and earning activities. a business plan may be brief or with very expanded contents. therefore. Write down the responses on flip chart or chalk board. a business plan may be brief or with very expanded content. Ask the Learners what the best order of contents in the list could be. Write down the re-arranged list on flip chart or chalk board.Instructional Methodology 1. Introduction • • • • Introduce the session by reviewing the session objectives. it does have to have some bare minimum of contents in order for it to make sense. Ask Learners to explain what they understand by the phrase “contents of a business plan”. Draw the Learners’ attention to the fact that while the business plan may not be said to have a standard format and contents.

If Learners’ Work books are available. Time allocation for the exercise may vary from class to class but should not exceed 30 minutes. For internal use it may be 10 pages or less. Upon completion of the readings and discussions. comments) from the rest of the class. (ii) The length of the business plan varies according to the primary purpose. (iii) Numbering of contents is essential for clarity and cross. (iii) The total number of contents should not be more than nine (9) including the executive summary. During the Learners’ presentations ask for feedback (questions. divide the class into groups of no less than three and no more than five. ensure that you do the following: (i) Ask Learners to give their understanding of the section read out. draw up a list of contents for a basic business plan. (ii) Amplify on the important points and clarify any issues that may arise. (ii) Working from the comprehensive business plan just considered. After each reading. meaning that the short version would suffice. otherwise write down the following instructions on flip chart or chalk board: (i) Assume you wish to prepare a business plan only for internal use. Inform the Learners that you will as a group read through and discuss each of the contents. stressing the following: (i) 272 . Give your overall feedback. Ask the Learners to open their Workbooks to the section on the “outline of Business Plan”. (iv) Write down your results on flip chart and present to plenary. give them a handout of the same. logic must apply in the arrangement of contents. If the Learners’ Workbook is not available to the Learners.• • • • • • • • Although there is no standard layout of a business plan. for external use it may be 20 pages or more. ask the class to do Exercise 2.referencing.

3. Conclusion • • • Ask the Learners to identify the Key points that emerged from the learning experience and discussion. Organise all materials required for the session (markers. flip chart with stand. • • 273 . (iii) A recognition that it requires as much information to prepare a basic business plan as it does a comprehensive one. However.(i) (ii) A basic business plan for internal use may be prepared in a less formal manner. the marketing plan and the financial plan. Ask them to state the general conclusions from the lesson. i. handouts). this does not in any way suggest that the information on which it is based may be scanty. These aspects must be well articulated. The critical parts are the business idea/concept. and any other literature. Remind the Learners to prepare for the next lesson by revisiting topics on market research. the section on “contents of a Business Plan” in the Learners’ Workbook.e. chalkboard and accessories. and business environment scanning. Key points to note are: (i) List of contents of a business plan (ii) recognition that it takes a lot of information to prepare a business plan. business opportunity identification and idea generation. Prepare model answer for the outline of contents of a basic business plan (Exercise 2). • Trainer Preparation • Review materials on contents of a business plan.

Contents of a business plan correctly explained. Hampshire. You may have to split it into two or three sessions. (iii) Relevance of training material to the session. Palgrave Macmillan. Jarskog. New York. H and Stevenson. 274 .Trainer Tips This is a lengthy topic. “Entrepreneurship and Small Business”. (ii) Usefulness of business plan to Learners’ careers. 2. International Labour Organisation. You will certainly have to intersperse it with a number of energizers. Assessment Criteria and Methodology Criteria • • Contents of business plan correctly outlined. brainstorming (i) and group/ individual assignment) used. Burns. P. (iv) Mastery of subject by the Learners.You may apply the following methods: (i) Interview the Learners as a group or individually. • Evaluation methods : . Reference Materials 1. D. (1996). (2001). “SYB Manual”. Methods • • • • Individual exercises Group exercise Tutorials Summary examination Session Evaluation • Evaluation indicators – You can evaluate by collecting information on the following: Effectiveness of training method (lecture. (ii) Administer a questionnaire.

2. 275 . 2. Thus the key sources of information are identified. goal setting. Learning Outcomes 1. The most relevant are motivation. The process of writing the business plan is also outlined. Learning Objectives On completion of this session. Identify the factors to be considered when preparing a business plan. Entrepreneurial Attributes.1. Factors to be considered in preparing a business plan correctly identified. This session therefore introduces the Learners to the actual process of preparing a business plan. desire to create. and knowledge of business principles.3 Factors to Consider In Preparing A Business Plan Session Duration: 3 hours Session Rationale: The business plan needs to be based on the realities of the environment in which the business will operate. Factors to be considered in preparing a business plan correctly explained. Explain the factors to be considered in preparing a business plan. This session enables the Learner to understand the factors which must be taken into account when preparing a business plan. the Learners should be able to: 1.4.

market research and environmental scanning. market research and environmental scan. the other main 276 . Learners will brainstorm on factors to consider in preparing a business plan. learning outcomes and learning activities. Ask the Learners to define the terms ‘business idea’. Refer the learners to the sessions on business idea. the market research and the environmental scan. including the following key points: (i) Besides the business opportunity. business opportunity. ‘business opportunity”. Draw the Learners’ attention to the fact that the fundamental information required in preparing a business plan is derived from the business opportunity and idea. business opportunity. Write the responses on flip chart or chalk board. Main Activities • • • Ask the Learners to identify the factors to consider in preparing a business plan. A list of the factors will be developed. Record the key parts of the definitions on the flip chart or chalk board. Refer the Learners to the sessions on business idea. 2. ‘market research’ and ‘environmental scanning’.Learner Activities / Environments • In this session. The Learners will then discuss these factors to come up with their explanations. • Instructional Methodology 1. market research and environmental scanning. Make a brief presentation on the factors to consider in preparing a business plan. Introduction • • • • • • Introduce the session by reviewing the session objectives. idea.

Divide the class into groups of no less than three and no more than five. (iii) Record answers for (i) and (ii) above on flip chart and present to plenary.• • • • • • • factors are how to collect and record information. Time allocation will vary from class to class but should be no more than 1 hour. and present it as a model approach. ask for feedback (questions. write down the main steps you would follow. CONCLUSION • • • Ask the Learners to identify the key points that emerged from the learning experience and discussion. comments) from the class. Ask them to state the general conclusions from the lesson. (ii) In the entire process of preparing a business. Give explanatory comments. During Learners’ presentations. Write down the following instructions: (i) For each of the factors to be considered in preparing a business plan. Invite some Learners to read aloud successive parts of this section. As part of your overall feedback. how to prepare the main body. ask the Learners to open their Workbooks to the section on “Factors to Consider in Preparing a Business Plan”. write down the information to be collected. The Learners therefore need to pay serious attention as to how they address the first four factors mentioned above. Clarify issues arising from the presentation and from the Learners’ feedback. 3. and the presentation (format) to adopt. (ii) The business plan is only as good as the information on which it is based. Key points to note are: 277 . relating to the presentations made by the Learners.

New York. Organize all materials required for the session (markers. H and Stevenson. You may need to make some finer clarification that the “Contents of a Business Plan” is about what is contained in a business plan. Remind the Learners to continue revisiting the topics on business opportunity and idea. the section on “Factors to Consider in Preparing a Business Plan” in the Learners” Workbook. Burns. D (1996) “SYB Manual”. P (2001). (iii) A recognition that the proposed systematic approach to preparing a business plan will give the best result. Palgrave Macmillan. 278 . While this session is more about where to get information from and how to put it together. and does require a number of energizers. The main steps in preparing a business plan. flip chart with stand.• List of the factors to consider when preparing a business plan. and Small Business.e. and any other literature. • Reference Materials 1. (ii) • • Trainer Tips • Some trainees may find it hard to distinguish between this session and the earlier one on “contents of a Business Plan”. handouts) Prepare model answers for the group exercises: (i) Information to be collected under each of the factors to consider in preparing a business plan. “Entrepreneurship Hampshire. market research and environmental scanning.” Jarskog. This topic too may have to be split into two or three sessions. 2. (ii) Explanation of the factors to consider when preparing a business plan. (i) Trainer Preparation • Review materials on factors to consider in preparing a business plan i. chalk board and accessories. International Labour Organisation.

Administer a questionnaire. Factors to be considered when preparing a business plan explained. Mastery of subject by Learners. Relevance of training material to the session. 279 . Methods • • • • Individual exercises Group exercise Tutorials Summary examination Session Evaluation • Evaluation Indicators – You can evaluate by collecting information on the following: (i) (ii) (iii) (iv) Effectiveness of training method (Lecture. • (i) (ii) Evaluation method – You may apply the following methods: Interview the Learners as a group or individually. brainstorming and group/individual assignment) used. Usefulness of business plan to the Learners’ careers.Assessment Criteria and Methodology Criteria • • Factors to be considered when preparing a business plan identified.

and commitment. Business plan prepared Prepare a business plan. Learners will concurrently develop their own business plans as individual assignments. after which they will do the exercises given after each section of the worked examples. Entrepreneurial Attributes Most relevant are motivation. Learning Outcomes 1. Learning Objectives On completion of this session. desire to create. goal setting.4. process it and arrange it into a business plan.4 Preparation of a Business Plan Session Duration: 20 hours Session Rationale: This session will enable the Learners to collect information.1. Learners will successively read through and discuss the worked examples given in the Learners’ Workbook. Learner Activities / Environment Working in groups. 280 . knowledge of business principles. the Learner should be able to: 1.

Refer the Learners to the sessions on “contents of a Business Plan” and “Factors to Consider in Preparing a Business Plan. the market research. The key points to bring out are: 1. If you have your feasibility study and /or strategic plan. and the environmental scan. it does make the job even easier Information to be recorded in the worksheets under the following headings and in the order: (i) The business idea/ concept (ii) Business goals (iii) Description of the industry (iv) Description of business venture (v) Marketing strategy / plan (vi) Sales forecast (vii) Production strategy and plan 2. 281 . Introduction • • • • Introduce the session by reviewing the session objectives. Main Activities Give a brief presentation on the process of collecting and recording information required for preparing a business plan. 3. learning outcomes and learning activities. after which each Learner will individually compile information in his/her own worksheets and ultimately prepare an individual business plan.Instructional Methodology 1.” Inform the Learners that they are how going to learn hands – on how to prepare a business plan. Explain to the Learners that they will work in groups on the worked examples on how to collect and record information in work sheets. and also on exercises on the same. The primary sources of information are the business opportunity identification and the business idea. 2.

(b) Discuss the group idea and record the necessary information in the group worksheet. (e) When all the worksheets have been duly completed. Be guided by steps 16 to 21 under the section “Steps Involved in Writing a Business Plan” as well as the two model business plans in the Learner’s Workbook. Read the beginning of the section and discuss among (ii) yourselves. (c) Present the worksheet contents to plenary. Write down the following instructions: (i) Open the Learners’ Work book to the section on “Preparing a Business Plan”. compile the individual business plans in readiness for assessment. Seek clarification where necessary. go through the following procedure: (a) Go through the worked examples and discuss them. Divide the class into groups of no less than three and no more than five. and on business ideas for each group members individual assignment. (d) Work on the individual business ideas and record the necessary information in the individual worksheet. and for each of the subsequent worksheets. • • 282 .(viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv) 4. (iii) Decide on a group business idea for the group exercises. Management / Corporate structure Risk assessment Implementation / Action Plan Financial Statements Financial Forecasts Financing requirements Referees Appendices Information from worksheets may then be compiled into either a basic business plan or a comprehensive one as per outline in the session on “contents of a Business Plan”. (iv) Starting with “The Business Idea”.

flip chart with stand. Clarify issues arising from the presentation and from the Learners’ feedback. and any other literature. 3. Trainer Preparation • Review materials on preparation of a business plan i. During Learners’ presentation of group worksheets. give your overall feed back taking special note of the key weaknesses you observed in them. Conclusion • • • Ask the Learners to point out the key points that emerged from the learning experience. ask for feedback (questions. Organise all materials required for the session (markers. chalk board and accessories. comments) from the class. the market research and the market scan. Ask them to state the general conclusions from the lesson. the section on “Preparing a Business Plan” in the Learners’ Workbook. Key points to note are:(i) Primary sources of information are the business opportunity / idea.e.• • • • Time allocation per worksheet will vary from worksheet to worksheet but the longest should not exceed 3 hours. It is very helpful to be systematic by first capturing (ii) information in worksheets before compiling it into the business plan. handouts) • 283 . At the very end after you have read and assessed the Learners’ individual business plans. (iii) It may be necessary re work the draft several times before a satisfactory business plan emerges.

(iv) Mastery of the subject by the Learners. discussion. It will also cal for after – hours input by the Learners. Administer a questionnaire. group/individual assignment) used. Take care to have continuity from one sub-session to the next. “Entrepreneurship and Small Business” Hampshire. D. (1996). International Labour Organisation. Palgrave Macmillan. “SYB Manual “ 2. (iii) Relevance of training material to the session. (ii) Usefulness of business plan to Learners’ careers.Trainer Tips This is very lengthy topic will require to be spread over several days. Reference Materials 1. Burns. New York. P (2001). • Evaluation Methods – you may apply the following methods: (i) (ii) Interview the Learners as a group or individually. Assessment Criteria and Methodology Criteria • Business Plan Correctly prepared Methods • • • • Individual exercises Group exercises Tutorials Summary examination Session Evaluation • Evaluation Indicators – You can evaluate by collecting information on the following: (i) Effectiveness of training method (lecture. Jarskog. H and Stevenson. 284 .

Learning Objectives On completion of this session.4. Define the terms “presentation “ and “presentation skills. 3.5 Presentation of a Business Plan Session Duration: 5 hours Session Rationale This session enables the Learners to understand why Stakeholders would require a business plan to be presented to them. Entrepreneurial Attributes The most relevant are motivation. Business plan presented. The terms “presentation” and “presentation skills” correctly defined. Present a business plan Learning Outcomes 1. The session thereby enables the Learners to prepare for and make an effective or convincing business plan presentation to stakeholders. goal setting.” Explain the importance of presenting a business plan to stakeholders. Importance of presenting or business plan to stakeholders explained. 3. knowledge of business principles. the Learners should be able to: 1. 2. and self confidence. desire to create. 2.1. 285 .

Record the answers on flip chart or chalk board. the Learners will individually present their business plans to plenary. • 2. Main Activities • • • • Ask the Learners to define the words “presentation” and “presentation skills” Write the responses on flip chart or chalk board.Learner Activities / Environment In this session. 286 . Introduction • • • • • Introduce the session by reviewing the session objectives. learning outcomes and the learning activities. Draw the Learners attention to the use of a business plan as a means for communicating the business goals and objectives to stakeholders. The key points to include in your presentation are: (i) There are two parts to the meaning of “presentation” namely an oral report of a written document and intended to win support or favour of target audience. Finally. Learners will brainstorm on the meaning of business plan presentation and also on the importance of presenting a business plan to stakeholders. Explain that it is usual for stakeholders to require the author of the business plan to present it before them. The Learners will then identify the skills needed by an individual to make a successful business plan presentation. Ask the Learners to mention the uses of a business plan. A list of presentation skills will be developed. Make a brief presentation on business plan presentation. Refer the Learners to the session on the importance of a business plan. Instructional Methodology 1.

Finally. focusing on the content. Clarify issues that may arise from the presentation and feedback from the Learners. Give an example a presentation technique and how a speaker is able to use it to enhance the effectiveness of his/her presentation. • 287 . • • • Time allocated should not exceed 1 hour. While such skills may be in born in some. (iii) (iv) (v) • Divide the class into groups of no less than three and no more than five. Write down the following instructions on flip chart or chalk board. they can be developed in most people through constant practice. gestures and body posture. give your overall feedback. Successful presentation demands the use of techniques or skills for capturing and holding the attention of the audience: voice control. ensuring that the following have clearly emerged: (a) The areas to focus on when presenting a business plan.(ii) A presentation is not merely a reading of the written document and therefore demands appropriate and sufficient preparation by the speaker in terms of the subject matter and the audio – visual aids. (i) (ii) (iii) Explain how a speaker would prepare the subject matter for presentation of a business plan. Present the results to plenary. List the skills needed to successfully present a business plan and explain how they are employed. (b) A comprehensive list of presentation skills.

You may use a simple table with a rating scale of 1 to 10. Key points to note are: (i) (ii) (iii) Definition of “presentation” and “presentation skills”. credibility of the business plan. Present to plenary (ii) (iii) • After each presentation. Conclusion • • • Ask the Learners to identify the key points that emerged from the learning experience and discussion. Total time allocated for each Learner should not exceed 30 minutes. List and description of areas of focus when preparing material for presentation of a business plan. Give your overall feedback • • • • 3. let the peers make an assessment in terms of content of the presentation. 288 . Ask a number of Learners to read out their assessments. Let each Learner collect and keep his/her assessment sheets.• Write down the following instructions on flip chart or chalk board: (i) Read through your individual business plan so that you understand all aspects of it. Ask them to state the general conclusions from the lesson. and the effectiveness of the speaker in applying the presentation skill/techniques. Importance of presenting a business plan to stakeholders. Prepare notes for a 10 minute presentation.

Hampshire. as the ultimate goal is often to “sell” the business plan. Trainer Preparation • • Review materials on presenting a business plan. IOWA. Winfrey. The IOWA State University Press. New York. In the case of a partnership. Prepare model answers for the following: (a) Definition of “presentation “and “presentation skills”. “Entrepreneurship and Small Business”. handouts). • Trainer Tips Note that while an individual may not have complete competence in all the presentation techniques / skills listed. the most able partner should be elected to make the presentation.(iv) List of presentation techniques/ skills. “Technical and Business Report Preparation”. Organise all materials needed for the session (markers. 2. chalk board and accessories. R (1962). they can never less be developed with practice. AMES. Reference Materials 1. 289 . (b) Material content for presentation of a business plan. flip chart with sand. (2001). • Draw the business plan presentation assessment table with a comprehensive list of assessment criteria. P. (c) List of presentation techniques / skills. Burns. Palgrave Macmillan.

(ii) Usefulness of business plan presentation to Learners’ Career. Administer a questionnaire. A business plan correctly presented. • • Methods • • • • Individual exercises Group exercises Tutorials Summary examination Session Evaluation • Evaluation indicators – You can evaluate by collecting information on the following: (i) Effectiveness of the training method used. 290 . (iii) (iv) • Evaluation methods – You may apply the following methods: (i) (ii) Interview the Learners as a group or individually. The importance of presenting a business plan to stakeholders correctly explained.Assessment Criteria and Methodology Criteria • The terms “presentation” and “presentation skills correctly defined. Relevance of training material to the session Mastery of skills or subject by Learners.

Explain the documents required for formalizing an enterprise. Learning Outcomes 1. On completion of this session. Documents required for formalizing an enterprise correctly explained. Learners will identify and discuss the different forms used in registering different forms of business. goal setting. desire to create and commitment.4. and also where to collect them from. Prepare all documents and papers for formalizing an enterprise. the Learner should be able to: 1. Entrepreneurial Attributes The most relevant are motivation.2. The discussion will 291 . 2. Learning Objectives. All documents and papers for formalizing an enterprise correctly prepared. 2. Learner Activities/ environment In this session.1 Business Documentation Session Duration: Session Rationale 4 hours This session enables the Learner to know which documents are required in registering a business. how to fill them in and where to submit the Learner to formalize a business – an important step in establishing an enterprise.

Explain to the Learners that different forms of business require different documentation. • Ask the Learners to mention the different forms of business . • • • • • 292 . how they should be completed. • the session Refer the Learners to the session on forms of business. Introduction • Introduce the session by reviewing objectives. Learning outcomes and learning activities. • • Record the answers on flip chart or chalk board. 2. when and where they are submitted. Record the responses on flip chart or chalk board. and conditions for submission if any. Instructional Methodology 1. where to submit them. Record the responses on flip chart or chalk board. Ask Learners to mention where the documents may be obtained from. Record the responses on flip chart or chalk board.include where the forms may be obtained. Main Activities • Ask the Learners to identify the documents required for registering different forms of business. Ask Learners what conditions apply.

Cooperatives are registered with the Registrar of Cooperatives under the Ministry of Agriculture and Cooperatives. Documentation for sole proprietorship / partnership and limited liability company are obtainable from the parents and copy rights registration office. • (ii) (iv) • Divide the class into groups. Write down the following instructions on flip chart or chalk board. discuss and understand the narration and examples. and cooperative. (i) Turn to the section on Business Documentation in the Learners’ Workbook. • (ii) 293 . They are also submitted to the same upon due completion. Read. (iii) The proposed business name has to be cleared for uniqueness before registration can be effected. Key points to include are: (i) There are three types of documentation catering respectively for sole proprietorship/ partnership. limited. Seek clarification when necessary. preferably the same as when they worked on preparation of a business plan. liability company.• Make a brief presentation on the documents required when registering a business. The application for registration attracts a fee which differs between different types and from time to time.

During the presentation ask for feedback from the Learners. Exercise 7. Present the results to plenary. Prepare a model answer for Exercise 6. • 3. Organise all the materials needed for the session (markers. Key points to note are: (i) Explanation of documents and papers required in formalizing a business. chalk board and accessories. flip chart and stand. Finally give your overall feedback. and the Assignment at the end of the section. handouts). Identification of relevant responsible offices. • 294 . (iv) • • • Time allocated should not exceed 1 hour 30 minutes.(iii) Do Exercise 6. Clarify issues that may arise form the presentation and feedback from Learners. Ask them to state the general conclusions from the lesson. Conclusion • Ask Learners to identify key points that emerged from the learning experience. • • (ii) Trainer Preparation • • Review materials on business documentation.

Draw the Learners’ attention to it.• • Prepare a model answer for Exercise 7. Trainer Tips • Application forms can be confusing to complete. Factories Act 2. • 295 . NAPSA Employer’s Guide 5. Brochure: Facts about Workers’ Compensation Fund Control Board. Food and Drugs Act 3. • Reference Materials 1. Environmental Protection and Pollution Control Act. The story included in the section brings out the importance of formalizing a business. Assessment Criteria and Methodology Criteria • The documents required for formalizing a business correctly explained. Prepare a model answer for the Assignment. Be sure that you know how to fill in each and very part of every form. even those parts that may be non-applicable have to be explained. All documents and papers for formalizing an enterprise correctly prepared. 4.

Relevance of training material to the session. (ii) (iii) (iv) • Evaluation methods – You may apply the following methods: (i) (ii) Interview the Learners as a group or individually. Usefulness of business documentation to Learners’ Careers. Mastery of subject by Learners. Administer a questionnaire.Methods • • • • Individual exercise Group exercise Tutorials Summary examination Session Evaluation • Evaluation Indicators – You information on the following: (i) can evaluate by collecting Effectiveness of training method (lecture. 296 . individual/ group work) used.

essential facilities and accessibility.2. buildings. Entrepreneurial Attributes The most relevant are motivation. desire to create. commitment and risk taking. The physical set up of an enterprise correctly described. goal setting. The Learner therefore will acquire knowledge required for setting up their business premises. Learner Activities / Environment In this session. Learning Objectives On completion of this session. Lists of the physical / material requirements and the relevant factors will then be developed. and also the factors to take into consideration. Learning Outcomes 1. Learners will brain storm on the material requirements for setting up business premises. The session allows the Learner to reflect on the statutory regulations with regard to different types of business premises.4. furniture.2 Physical Set – Up of An Enterprise Session Duration: 4 hours Session Rationale This session on the physical set up of an enterprise enables the Learner to understand and appreciate the physical requirements in terms of the site. machinery and equipment. 297 . the Learner should be able to: (i) Describe the physical set up of an enterprise.

Instructional Methodology 1. Record the answers on flip chart or chalk board. learning outcomes and learning activities. Record the answers on flip chart or chalk board. Key points to include are: (i) Different enterprise types require different designs of buildings and different types of furniture. • • • • Ask the Learners to mention the different types of enterprise. Explain to the Learners that different types of enterprise have different requirements in terms of physical set up and regulatory issues 2. Main Activities • Ask the Learners to identify the physical requirements for setting up an enterprise. Refer the Learners to the session on enterprise types. Ask the Learners to identify the regulatory issues which arise when setting up an enterprise. machinery and equipment. • • • • • 298 . Introduction • Introduce the session by reviewing the session objective. Record the answers on a flip chart or chalk board. Make a brief presentation on the physical requirements and regulatory issues in setting up an enterprise.

• (ii) (iii) (iv) • • • Time allocated should not exceed 2 hours 30 minutes. Finally. discuss and understand the narration and examples. It is essential that each business owner takes a critical look at their physical and regulatory requirements when setting up their enterprise. Conclusion • Ask the Learners to identify the key points that emerged from the learning experience and discussion. Clarify issues that may arise from the presentation and feed back from the Learners.(ii) (iii) (iv) Different enterprise types are subject to different regulations. • Divide the class into groups of no less than three and no more than five. Do Exercise 8 and the Assignment immediately following. During the presentation ask for feedback from the Learners. • 3. give your overall feed back. Read. Write down the following instructions: (i) Turn to the section on physical set up of an enterprise in the Learner’s Workbook. Present the results to plenary. Seek clarification when necessary. preferable the same groups as they were in for the business plan. 299 . For some enterprise types the location is critical.

2. flip chart and stand. Prepare a model answer for Exercise 8. 300 . Factories Act. Reference Material 1. 3. • Trainer Tips • The Laws of Zambia provide the basic specifications for physical set up of business. chalk board and accessories. Food and Drug Act Environmental Protection and Pollution Control Act.• • Ask them to state the general conclusions from the lesson. Organise all the materials needed for the session (markers. You will do well to familiarize yourself with the various relevant Law. Trainer Preparation • • Review materials on physical set up of an enterprise. Key points to note are: (i) Identification of the physical and regulatory requirements in setting up an enterprise. Assessment Criteria and Methodology Criteria • The physical set up of an enterprise correctly described. handouts).

individual/ group work) used. Relevance of training material to the session. Mastery of subject by the Learners.Methods • • • • Individual exercise Group exercise Tutorials Summary examination Session Evaluation • Evaluation indicators – You can evaluate by collecting information on the following: (i) Effectiveness of training method (Lecture. Usefulness of session content to Learners’ career. 301 . (ii) (iii) (iv) • Evaluation Methods – You may apply the following methods: (i) (ii) Interview the Learners as a group or individually. Administer a questionnaire.

A list of these factors will be 302 . They will identify the factors to consider in setting up a production / service process.2. commitment.4. Production / Service process correctly set up Learner Activities / Environment In this session.3 Production / Service Process Session Duration: 4 hours Session Rationale This session on production / Service process deals with the final step in establishing an enterprise – the designing and setting up of the process by which goods will be produced or services delivered. Learning Outcomes 1. desire to create. knowledge of business principles. Learners will brain storm on the meaning of the term “production / service process”. The session therefore enables them to identify the factors they will need to consider when setting up their own production / Service process. Set up a production / Service process for an enterprise. The session enables the Learners to understand the relevant factors in setting up a production / service process. goal setting. the Learners should be able to: 1. Learning Objectives On completion of this session. Entrepreneurial Attributes The most relevant are motivation. and risk taking.

303 . first and foremost. Main Activities • Ask the Learners to explain the term “production / service process”. Record the responses on flip chart or chalk board. Key points to include in your presentation are: • • • (i) The meaning has two parts – sequence of activities and transformation of raw materials into the product. to define and understand his / her business idea very well – the product to be offered and the customer needs to be satisfied. Explain that to set up an effective production / service process one needs. Make a short presentation on production / service process. preferably the same groups as they were in for the business plan. 2. The Learners will then develop a production / service process for an enterprise. Some production processes are highly regulated and require special clearance to commence. (ii) Some production process are simple.developed. others are simple and highly technical. Instructional Methodology 1. Introduction • • Refer the Learners to the session on the business idea / concept. and close external monitoring as they continued (iii) • Divide the class into groups of no less than three and no more than five.

Do Exercise 9 and the Assignment at the end of the section Present the results to plenary. Key points to note are. give your overall feedback. Clarify issues that may arise from the presentation and feedback from the Learners. discuss and understand the narration and examples given. (i) Identification of factors to consider in setting up a production / service process. Seek clarification when necessary. Read. • 3. Ask them to state the general conclusions from the lesson. • • Trainer Preparation • Review materials on production / Service process 304 . During the presentation ask for feedback from the Learners. Finally. Conclusion • Ask the Learners to identify the key points that emerged from the learning experience and discussion.• Write down the following instructions: (i) Turn to the section on “production / service process” in the Learners’ Workbook. (ii) (iii) (iv) • • • Time allocated should not be more than 2 hours 30 minutes.

• Organise all the materials needed for the session (markers. 305 . 3. Prepare model answer for Exercise 9. flip chart and stand. • • Trainer Tips • Here too you will do well to familiarize yourself with the various relevant Laws. Factories Act Food and Drugs Act Environmental and Pollution Control Act Assessment Criteria and Methodology Criteria • Methods • • • • Individual exercises Group exercise Tutorials Summary examination A production / Service process correctly set up Session Evaluation • Evaluation indicators – You can evaluate by collecting information on the following: (i) Effectiveness of training method individual / group work) used. Prepare a model answer for definition of production / service process. handouts). Reference Material 1. 2. chalk board and accessories. (lecture.

Evaluation methods – You may apply the following methods : (i) (ii) Interview the Learners as a group or individually. 306 . Mastery of subject by the Learners. Administer a questionnaire.(ii) (iii) (iv) • Usefulness of session content to Learners’ Career Relevance of training material to the session.

delivery. This manual is. This manual has been prepared in such a way that it attempts to give a foundation to Trainers of Entrepreneurs and/or potential entrepreneurs in Entrepreneurship Development and its related subjects. therefore. 138 (Sustaining an Enterprise). demonstrations and learner practical exercises. whether existing or would-be. The manual contains three key units namely: • • • Appraising one’s enterprise Productivity and management Managing survival and growth The manual seeks to document appropriate methodologies for planning. have a lot of contributions to make during Entrepreneurship Training programs. It must be noted that entrepreneurs are normally very practical people and want to have very little to do with theories. and evaluation of the subject areas in module 5 in order to assist you the trainer to effectively and efficiently deliver the said module. all of which should be meant for a very enabling learning environment. therefore. The trainer’s major job is. The presentation of the manual is such that it gives tips on how you the trainer can design and develop appropriate explanations. The value of the training workshop will normally come from a combination of experiences and thoughts of the participants as well as the trainer’s guidance. 307 . based on the belief that entrepreneurs.MODULE TITLE: Sustaining an Enterprise INTRODUCTION Contained in this document is an Entrepreneurship Trainers’ Manual for module 5 of the TEVETA Curriculum Chart No. to stimulate ideas and discussions within the structure of the training program bearing in mind that s/he should not be regarded as an expert but a facilitator.

trainees will be able to: • • • Appraise one’s enterprise Improve productivity and management Manage survival and growth 308 . carry on. Sustaining an enterprise refers to the process of managing an enterprise in such as way that it is able to maintain effective. You will note that the modules in TEVETA Curriculum Chart no.MODULE 5: SUSTAINING AN ENTERPRISE ________________________________________________ The aim of the module The aim of this module (Sustaining an Enterprise) is to impart skills that will enable the trainees to sustain their enterprises and manage their growth. continue. productivity management and managing survival and growth. in the sense that module 1 seeks to introduce the trainee to Entrepreneurship followed by module 2. efficient and viable operations over a very long period of time. keep going or prolong. 138 are inter-related and progressive in nature. The term. there is module 3. Next. It is therefore. This process involves so many aspects that revolve around constant appraisals of an enterprise. whilst module 5 attempts to give tips to the trainees on how to sustain the enterprise that has been established in module 4. Module 4 then gives the trainees tips on how to establish an Enterprise. Learning objectives of the module At the end of the module. important that you as an entrepreneurship trainer understand this term thoroughly so that you may be able to offer elaborate and accurate explanations to your trainees when delivering this module. which explains how to Develop Entrepreneurial competences. “Sustain” means to maintain. which explains how to develop Enterprise Management skills.

com/business/burns Entrepreneur magazine: (US): www. New York.businessadviceonline.entrepreneurmag.co.com Small Business Services: www. 14th Edition. Gamble. Trainers are therefore..palgrave.smallbusiness.gov.: New York ii) Websites: Lecture materials: www. j. The manual seeks to provide a foundation on which a resourceful trainer should keep building in terms Knowledge and material development. Palgrave Thompson. John (2005).Recommended further reading and References The contents in this manual are not conclusive. Inc.uk 309 . McgrawHill Companies.barclays.uk Barclays Bank: www. Concepts & Cases Chapter 6. Arthur. encouraged to read widely in order to supplement the information contained in this manual. Recommended further reading and references includes- i) Text books include:- Burns. Crafting and Executing Strategy. Macmillan. Paul (2001). Strickland A. Entrepreneurship and Small Business.

This is the ability necessary for dealing with in real life business situations and is an attribute that every entrepreneur must possess. As a result. 3. Session Rationale The rationale for a Session on Enterprise Performance is most of the times entrepreneurs embark on running an enterprise without any knowledge of how to determine how the business is performing. 4.UNIT A5. Session Duration (8 hours) The session on enterprise performance can be delivered in eight hours as follows: • • • 2 hours: Theoretical explanations 4 hours: Practical demonstrations 2 hours: Learners’ practical exercises 2. they are unable to take correct measures at the right time causing the enterprise to fail. This session will enable trainees to evaluate the performance of their enterprises using basic methods. Learning Outcomes The expected learning outcomes for trainees are as follows: - 310 . trainees will be able to: • • Identify the basic performance indicators in an enterprise Use simple tools to assess enterprise performance 5. Entrepreneurial Attributes for the Session The Entrepreneurial Attribute for this session is the ability to make informed decisions based on objective business performance assessments.1 .1 Appraising One’s Enterprise UNIT 5.1 Enterprise Performance ____________________________________________ 1. Session Learning Objectives The learning objectives for this session are that by the end of this unit.

6. Instructional methodology i) Introduction • Introduce the session and state objectives. ii) Practical activities and demonstrations a)Group Exercises Put trainees into 4 or 5 groups and give them an exercise to conduct an external appraisal for a well known small enterprise in the locality (the Trainer should identify the enterprise before hand). where the groups go into groups to practically undertake 311 . • Present key concepts of topic to create theoretical understanding among learners • Allow for a Question-and-Answer session for clarifications and corrections • Refer learners to the relevant section of the workbook. Give your comments on the presentations and clarify any issues that may have risen during discussions. Guide learners on how to apply the knowledge they learnt to conduct this external assessment. arrange with other existing enterprises. Encourage learners to exchange their views and ideas in the groups. After this demonstration exercise. • Invite participants to given there own understanding of enterprise performance. During this session.• • Basic enterprise performance indicators correctly identified The tools for measuring enterprise performance correctly described. Learner Activities The trainer must bear in mind that the learner activities will largely depend on the instructional methodology employed. (The group exercise should take about 40 minutes) b) Open discussions Invite each group to present their answers to who group and facilitate an open discussion on the answers given. expected learning outcomes. learners will be in a classroom set up and the session may be delivered as indicated below: 7.

Assessment criteria The assessment criteria for this unit is that- 312 . 8. Organise all training materials needed for the session (e. 9. markers cards. The Trainer’s Tips on the Session The whole session on Enterprise Performance should be based on the theoretical concepts presented in the text below which is also found in the Learner’s workbook. Trainer’s preparation In order to effectively and efficiently deliver the session on Enterprise Performance the trainer should: - Read through the session content on Enterprise Performance and related referral materials and understand the topic thoroughly. internal and external situation and finance performance is what can give the true picture of the status of an enterprise. Learners must be made aware that an all round appraisal involving market performance. • Internal and external situation • Finance performance Exercise independently. Write down the key points on the Board/Flip chart and check level of assimilation of knowledge by asking learners to identify or describe key points from the session in line with the learning outcomes. The iii) Summary Summarize the session by asking participants to highlight what they learned from the topic.their own. performance Flip chart paper. Handouts. Enterprise Performance assessment exercise should cover:• Market performance.g. etc) ) Prepare the exercise and suggested answers in advance. 10.

i) The key indicators in enterprise appraisal are correctly stated by trainees ii) The performance of the enterprise correctly described 11. Assessment Method The methods of assessment are aimed at achieving the above criteria and should include the following activities by trainees i) Individual exercises ii) Group exercises iii) Summary examinations 12. Inc.uk 313 . 14th Edition.. Macmillan. New York. McgrawHill Companies. Areas to be evaluated include:• Effectiveness of training methods used • Relevance of training content 13. Palgrave Thompson. Strickland A. Concepts & Cases Chapter 3.gov. Crafting and Executing Strategy. Session Evaluation The Trainer should lead trainees in a participatory session evaluation session exercise at the end of each session. Reference Materials an Websites Burns. Arthur. Entrepreneurship and Small Business. This will be augmented by a written end of unit evaluation exercise. John (2005). j. Gamble.businessadviceonline. Paul (2001).: New York Small Business Services: www.

314 .Sub Unit 5. The diagram below summaries the different positions that enterprises can hold on the market in relation to their market performance. In order to survive and continue to grow.1. This can be done by assessing what percentage of the market share the enterprise holds. appraising an enterprise takes the form of doing a very detailed assessment of the operations of an enterprise.1: Enterprise Performance (Unit Content) In very simple terms. the management of an enterprise must ensure that the enterprise has a favourable position in relation to the industry in which it operates. The Boston Matrix is one way an enterprise can use to assess its market position. The industry position of an enterprise can be determined using some basic performance indicators which include:- i) Market performance The performance of an enterprise depends first and foremost on its ability to secure a sufficiently large customer base to enable it produce at a profitable level. One of the ways of determining how well an enterprise is performing is therefore to assess its position on the market in relations to its competitors.

Market Share 10x M A R K E T 15% 20% STAR Attractive market High market share High growth rate 1. appraising an enterprise’s performance includes identification of its Strengths. Weaknesses.1x (market Leaders/Challengers) (starters. such an appraisal should include an internal and external assessment as follows:Step 1: Internal appraisal An enterprise’s internal operations require what are referred to as the four (4) Ms of operations namely: 315 . average performers) G R O W T H 5% R A T E 1% Attractive market Large Market share Low growth rate (Market stability) leaders Unattractive market Low market share Low/no Market growth (Poorly performing with growth potential) with no 10% CASH COW DOG In addition. Opportunities and Threats.x PROBLEM CHILD Attractive Market Low Market share High growth rate .

an enterprise should analyse its opportunities and threats from the point of view of the following critical stakeholders: Competition: What is the enterprise’s competitive position? Does the enterprise have any competitive advantage? What can be done to improve the enterprise’s competitive position? Suppliers: Who are the enterprise’s current suppliers? How reliable are they? What has been the relationship like? Is there any need for changes? Government Regulations: What is the enterprise’s position regarding government requirements and demands? How compliant has the enterprise been? Is there any room for possible penalties? What can be done to enhance compliance? Financial Institutions: Does the enterprise require any external funding? Is external funding readily available and if it is. materials wastage. etc) Materials (the raw materials and other inputs) Critically analyse the types of raw materials and other inputs to determine their suitability for the target market Method (the pattern of operations) Critically analyse the manner in which operations are conducted to determine areas of strengths and weaknesses Step 2: External appraisal Under the external appraisal.Manpower (human resource) Critically analyse the available human resources to determine areas of strengths and weaknesses (motivational staff. skills amongst staff. areas of conflict. emoluments. staff development programs) Machinery (technology in use) Critically analyse the available type of production and operations technology to determine areas of strengths and weaknesses (machine breakdowns. operational levels. availability of spares. at what cost and conditions can the enterprise afford the terms? 316 .

Family Situations: How do family members and the owner treat the enterprise? Are there any areas requiring serious attention? Has there been any serious conflict between the owner/family members and the enterprise? General Economic Conditions: What are the general economic trends as they relate to the enterprise’s performance? How are factors like interest rates. inflation rates. Gross Profit margin = Gross profit Sales x 100 = x % Acid Test ratio: this is ratio measures the actual liquidity of an enterprise. namely: Gross Profit margin: This is used to assess profitably by assessing how much profit an enterprise has made in relation to the sales. It is expressed as a factor. Different method can be used in this regard. meaning that the amount of money expected in the short term is able to pay off outstanding short term debts. Acid Test ratio = Current assets – stocks Current liabilities 317 . It is suggested that the ideal acid test ratio must be 1:1. This unit we will discuss just two basic ones. foreign exchange rates and average household disposable income affecting the enterprise? ii) Financial performance Financial assessments are the most common ways of determining the performance of an enterprise.

3. clarifications and other enhance the knowledge gained. exercises Practical exercises by participants including exercises Learners Workbook 2. Session Duration This session should be delivered in at least 8 hours over a period of three days as indicated below:Two (2) hours: topic. Session Rationale The justification for this session is that it will enable learners examine the various stages of the Life Cycle of an Enterprise so that they (trainees) may learn to develop different and appropriate strategies for each stage to ensure the enterprise’s sustainability. Session Learning Objectives The session learning objectives are that by the end of this session.2 Life Cycle of the Enterprise ______________________________________________ 1. 4.UNIT 5. Two (2) hours: that Four (4) hours: in the Introduction of theoretical concepts that underpin the Demonstrations. Session Learning Outcomes • The life cycle of an enterprise correctly described • Stages of an enterprise life cycle correctly explained • Stages of an enterprise and enterprise performance correctly related • • 318 . trainees will be able to: Describe the stages of an Enterprise’ Life Cycle Identify strategies to be applied at stages of the life cycle of an enterprise 5. Entrepreneurial Attributes for the session The Entrepreneurial Attributes for the session is that it teaches analytical skills that will help trainees to correctly and accurately identify and interpret the enterprises’ changing circumstances and stages.1 .

expected learning outcomes and the learning activities that trainees will be involved in. Decline. Growth. state session objectives.6. There must be space for movement and group work and sufficient Wall/Board space to stick cards on. the Trainer should draw an illustration of the enterprise life cycle showing the different stages of Launch. iii) Practical activities and demonstrations a)Group Exercises For purposes of demonstrations. and Exit. • Invite participants to come forward to stick their ideas on the Wall/Board. • Relate these to what has already been presented by trainees • Allow for a Question-and-Answer session for clarifications and corrections • Refer learners to the relevant section of the workbook. Collectively with the trainees cluster the cards to see if they constitute all the stages of the life cycle of an enterprise ii) Presentation of theoretical concept • Present key concepts of topic to create theoretical understanding among learners. 319 . Learner Activities and environment Learners will be in a class room situation and should ideally sit in a semi circle or u shape to encourage openness and participation. Instructional Methodology It is recommended that the trainer uses learner centred and highly participatory instructional methods. 7. Enterprises with sufficient room and willing entrepreneurs should be identified. Maturity. i) Introduction • Introduce the session by linking it to the previous session. • Give participants cards and invite them to brain storm on stages of the life cycle of an enterprise.

Arrange with four existing enterprises that can willingly allow trainees to come to their businesses. iii) Summary Summarize the session by asking participants to highlight what they learned from the exercise and from the whole topic. Trainers’ Preparation In order to effectively and efficiently deliver this session the trainer should: - 320 . the groups should present their finding to the class. b) Open discussions After the field exercise. 8. Trainer should facilitate an open discussion on the presentations. Guide the trainees in reconciling what was taught in class with what obtained in the field. difficulties and challenges that the enterprises they visit are facing in their operations. Give your comments on the presentations and clarify any issues that may have risen during presentations. The four enterprises should be at different stages of the enterprise life cycle namely: - • • • • Launch Stage Growth Stage Maturity Stage Decline Stage Divide the trainees into four groups and assign each group a different enterprise at a different stage of a life cycle and task them with the responsibility of undertaking a field trip to note down the different problems. Write down the key points on the Board/Flip chart and check level of assimilation of knowledge by asking trainees to identify or describe key points from the session in line with the learning outcomes.

cards. enterprises at maturity stage are those that have been in business for a period between six and ten years and those that have been in business for over ten years may be considered to be in the decline stage. Stick stuff etc) ) Prepare the exercise and suggested answers in advance. Organise all training materials needed for the session (e. Assessment Method The assessment methods should include:i) Individual exercises ii) Group exercises iii) Summary examinations 12. Ideally enterprises at launch stage are those that have been in business for less than a year. Trainer’s Tips The session on the Life Cycle of an Enterprise should be delivered based on the theoretical content in this section. Assessment criteria The assessment criteria for this unit should include the following:• The life cycle of an enterprise clearly defined by the trainee • The stages of the enterprise life cycle correctly explained • The stages and performance of the enterprise correctly related 11. This will be augmented by a written end of unit evaluation exercise. enterprises at growth stage are those that have been in business for a period between one and five years. 9. Session Evaluation The Trainer should lead trainees in a participatory session evaluation session exercise at the end of each session. Areas to be evaluated include:• Effectiveness of training methods used • Relevance of training content 321 . Make necessary arrangements with the Enterprises in the neighbourhood. performance Flip chart paper.g Handouts.Read through the session content on the Life Cycle of an Enterprise and related referral materials and understand the topic thoroughly. 10. markers.

gov. Reference Materials and Websites Burns. Palgrave Lecture materials: www. Paul (2001).com Small Business Services: www.barclays.co.com/business/burns Entrepreneur magazine: (US): www. Entrepreneurship and Small Business. Macmillan.uk 322 .palgrave.entrepreneurmag.13. New York.uk Barclays Bank: www.smallbusiness.businessadviceonline.

like a human being or a product.Unit 1. has a life cycle. Where the entrepreneur has fresh ideas a re-launch may occur. market research. meaning the business may take a different form or nature. and then it goes through the growth stage. 323 • • • • • . feasibility study and finally the preparation of the Business Plan Business launch: this is the commissioning of the enterprise to commence operations Business growth and expansion: this reflects the growth of the enterprise through increased sales volume. adolescence. then the maturity stage and finally the decline stage where it eventually phases out. expansion in terms of capital investments and increase in profitability levels Business maturity: this where business operations appear to have gotten to the highest capacity levels and begin to stagnate meaning that no further growth is recorded Business decline: at this stage. which involves the following stages: • Ideas generation: this is when the business idea is conceived and subjected to an environmental scan. the business may eventually phase out. increased number of employees. an enterprise goes through a life cycle. A product is introduced on the market. the business begins to show a downward trend in terms of sales and operational capacity Phase out or re-launch: with a continued downward trend. In the same way. adulthood. teenage. A human being ordinarily is born and then he goes through various growth stages such as childhood. and finally death.2: The Life Cycle of an Enterprise (Content) An enterprise.

there is need for systematic. efficient and effective planning and execution in order to lengthen the life span of that enterprise. The entrepreneur is like a driver who must steer the vehicle in the right direction. It is up to each entrepreneur to utilise the best entrepreneurial skills and competencies based on a sound understanding of the following key business stakeholders: • • • God (the creator and giver of all knowledge. maintenance services and use of appropriate and recommended spares. An enterprise’s life cycle is in the hands of the entrepreneur who owns it. an enterprise’s life span can be lengthened through the use of appropriate and recommended entrepreneurial and business management skills. skills and wisdom) The Customer (the king and queen of any business) The employees (the people with whom the entrepreneur runs the enterprise The Suppliers (the people who make it possible for an entrepreneur to produce) The Competitors (the people from whom an entrepreneur may borrow various entrepreneurial ideas and help him measure his performance) • • 324 . At every stage of an enterprise’s life cycle.Some tips on the Enterprise Life Cycle The critical things to take note of during the different stages of an enterprise are the issues that have been discussed through out this training manual. Just like a vehicle’s life span can be lengthened through appropriate repairs.

These stages are as follows: - • Launch stage is associated with slow sales. • Growth Stage is a period of rapid market acceptance and substantial profit improvement. low or no profits and low consumer acceptability. Marketing activities in this stage are focussed on persuading early adopters to buy. 325 .• The Government (the people who facilitate and create an enabling environment for enterprises to flourish) The Owner and family (the people on whom the survival of the enterprise largely depends) • Different stages of an enterprise’s Life Cycle present different challenges and difficulties to the managers of those enterprises. adding other product ranges. lowering prices and promotion focusing on product differentiation and heavy sales promotion. promotional pricing. Activities in the enterprise at this stage mainly involve limiting as much as possible. Sales at this stage show a downward drift and profits begin to erode. • Decline Stage is a period where customers are looking for new products particularly from new enterprises. The enterprise activities revolve around building sales and market share. Demonstrate to trainees that in this stage. The enterprise activities largely involve luring the customers from competitors. limited distribution channels. consumers accept the enterprise and its products/services and begin to adopt it in greater numbers. • Maturity Stage is a period of a slow down in sales growth coupled with increased competition. Demonstrate that this is a period of heavy expenses incurred with enterprise development and introduction. and promotions aimed at educating potential customers about the new enterprise. increasing distribution channels and heavy promotion.

costs and seeking ways to make the enterprise much more appealing again. sale the business or close the enterprise all together 326 . At this stage it may be advisable to either relocate. • Exit Stage is a period where it makes more economic sense to exit from the business than to continue operating.

3.1 Total Quality Management _______________________________________________________ 1. Session Rationale The rationale behind this session is that given the competitive nature of business today there is need to move the focus of quality away from being a purely Operations Department’s activity into a major concern for the entire enterprise. 2.2 . Total Quality Management is way of thinking and working that is concerned with continuously meeting the needs and expectations of customers.2 Productivity and Management UNIT 5. Learning Objectives The session learning objectives that by the end of the session. Session Duration (8 hours) The session on enterprise performance should be delivered in 8 hours as follows:Two (2) hours: discussions. concern for high levels of competence and quality4. customer responsiveness. trainees will be able to: • • Define Total Quality management Identify the key concepts in Total Quality Management 5.UNIT A5. Introduction and theoretical presentation and Two (2) hours: Practical exercise and demonstrations and examples and Four (4) hours: Supervised Learners’ practical exercises. Learning Outcomes • Total Quality Management correctly defined • Key concepts Total Quality Management properly identified 327 . Entrepreneurial Attributes for the Session This session seeks to inculcate in trainees attributes of reliability.

Learner Activities and environment A class room environment large enough for trainees to freely move around doing exercises. 328 . A sitting arrangement that encourages active participation and free exchange of ideas is necessary. group sitting. • Give your views on the presentations as away of introducing the theoretical concepts underpinning the topic ii) Presentation of theoretical concept • Present key concepts of topic to create theoretical understanding among learners. e.6. Instructional Methodologies A Progressive training approach in which trainees are actively involved in the learning process must be used.g. The trainer must use learner centred and highly participatory instructional methods. • Invite representatives of groups to presents their discussions to the whole class and initiate and facilitate a discussion on the presentations. state session objectives. • Invite trainees to discuss within the groups in which they are sitting. The outline below is just a guide that can be enhance by a trainer. expected learning outcomes and the learning activities that trainees will be involved in. 7. i) Introduction • Introduce the session by linking it to the previous session. the topic Total Quality Management and how it can be applied in an enterprise set. There must be sufficient teaching aids to enhance learning. • Relate these to what has already been presented by trainees • Allow for a Question-and-Answer session for clarifications and corrections • Refer learners to the relevant section of the workbook.

After the presentation. 8. Ensure that the trainees are actively following the demonstrations. Organise the presentation by the TQM expert well in advance 329 .iii) Practical activities and demonstrations a) Presentation/field visit Arrange for a presentation by a TQM expert from an Company the process Total Quality Management in the Company. Trainers’ Preparation This is a very technical topic. the trainer should: - Read through the session content on Total Quality Management and related referral materials. It is important for the Trainer to read widely and understand the topic thoroughly. conduct a facilitated discussion on the lessons learned from the presentation. Using the lessons learnt during the presentations. Group presentations and discussions Allow the groups to represents their findings in plenary Guide the groups in identifying major differences between the two scenarios of TQM by experts and TQM among micro and small enterprises. Write down the key points on the Board/Flip chart and check level of assimilation of knowledge by asking trainees to identify or describe key points from the session in line with the learning outcomes. give trainees into groups and ask them to visit selected small enterprises in order to examine to what extent these enterprises practice TQM. asking questions and taking down notes. iv) Session Summary Summarize the session by asking participants to highlight what they learned from the exercise and from the whole topic.

Trainer’s Tips The session on the Life Cycle of an Enterprise should be delivered based on the theoretical content presented in this section. 9.Organise all training materials needed for the session (e.g Handouts. markers. 11. 10. The trainer can also try to secure a quality manual from an established company or a sample from the Zambian Bureau of Standards to use as reference Material. performance Flip chart paper. Stick stuff etc) ) Arrange for the field exercise by trainees to the small enterprises Secure a sample Total Quality Management Manual for distribution to trainees. requires a very practical approach. cards. One suggested approach that the trainer takes trainees to an enterprise/Company where the concepts of total quality management are seriously and effectively employed in its operations. Assessment criteria The key assessment criteria for this unit should be that:Trainees correctly define the Total quality Management Trainees correctly define the process of Total Quality Management in an enterprise. Assessment method The methods of assessment will to achieve the above criteria will include the following activities by trainees i) Individual exercises ii) Group exercises iii) Summary examinations 330 . The topic on Total Quality Management is very technical and therefore.

13.businessadviceonline. Paul (2001). New York.barclays.uk Barclays Bank: www.12.gov. Entrepreneurship and Small Business.uk 331 . This will be augmented by a written end of unit evaluation exercise.smallbusiness.palgrave. Reference Materials and Websites Burns.com Small Business Services: www.co.entrepreneurmag. Palgrave Lecture materials: www. Macmillan.com/business/burns Entrepreneur magazine: (US): www. Session evaluation The Trainer should lead trainees in a participatory session evaluation exercise at the end of each session.

It also Benchmarking: TQM believes in benchmarking. equipment. which is an approach where an enterprise compares its operations with those of other enterprises preferably the best enterprise available Just in time concept: TQM believes in systems that are designed to produce or deliver just and when the products and services are needed. In TQM. Employee empowerment: the concept of TQM believes in the involvement of the workforce in every step of the production process. The process of Total Quality Management is best achieved through the following key concepts: Continuous improvement: TQM requires a never-ending process of continuous improvements that embraces people. In short through TQM. 332 . believes in continuous employee training and development. issues of quality become the responsibility of all employees in all the departments of an enterprise. TQM tries to move the focus of quality away from being just an Operation’s Department activity into a major concern for the entire organization. the end objective is perfection. materials. and procedures. suppliers.Unit 2.1 Total Quality Management ________________________________________________________ Total Quality Management (TQM) is defined as a way of thinking and working that is concerned with meeting the needs and expectations of customers.

This means all costs attributable to producing a product that is not 100% perfect. They include the cost of training workers to improve capabilities and the cost of managing quality improvement programs. Internal failure costs can include the cost of scrap resulting from defective pieces and the actual cost of rework and cost of down time when the next operation cannot take place because the inputs are defective. External costs are the most expensive costs to a company. ii) Appraisal cost These are all costs related to monitoring and evaluation of production processes to ensure that the production system is operating within set standards and include the cost of testing and payment of inspectors. iv) External costs These are costs relating to delivering poor quality to the customer. Example When producing protective overalls. They include cost of redoing the job. namely. A skill upgrading course for workers to enhance their ability to make products that comply with set standards is an example. if the sleeves have been cut too short.g. Appraisal costs also include the cost of independent verification to get certification from National Standards Bureaus. i) Prevention costs These are costs associated with activities involved in reducing the potential of producing defective products. e. reinstalling a kitchen unit because the first job was 333 . At least four major categories of costs associated with quality can be identified. iii) Internal failure These are costs that result from actual production of defective products. then that material becomes scrap as it cannot be used on the same overalls and production of overalls has to be halted become there is no sleeve inputs.COSTS ASSOCIATED WITH QUALITY The cost of quality is the price you pay for doing things wrong the first time around.

scrap and overtime. Capital: the more available and efficient use of capital. the cost of transporting goods that have been recalled. the more productive the result is bound to be Human resources in use: the more skilled. then. the more productive the result is bound to be. output given a constant input. Factors that affect productivity The methods used: the more efficient the method is. This means that productivity is measured by what comes out (output) as a result of what goes in (in put). if two (2) days of work produces five (5) bags of maize and another two (2) days of work produces seven (7) bags of maize under similar circumstances. the two days that produces seven bags of maize is more productive.wrongly done. the more productive the result is bound to be 334 . PRODUCTIVITY Productivity is defined using a ratio as output over input. Productivity = Output Input The higher the productivity. the more productive the result is bound to be Technology in use: the more updated and appropriate the technology in use is. the higher the For instance. experienced and knowledgeable the human resources are.

and fish-bone diagrams. Total Quality Management therefore makes an enterprise more efficient and productive because productivity is the ratio of output over input. identify its cause. and eliminate it and facilitate production of a quality service or product. studying how other enterprises have improved productivity and re-examining the way work is done Establish reasonable goals for improvement Ensure that there is a culture of teamwork Measure improvements and publicize them Offer incentives and rewards for productive work • • • • Link between TQM and Productivity By using TQM techniques such as statistical process control. The link between TQM and productivity is very tight because a good TQM system leads to higher level of productivity in an enterprise. a company can locate waste. 335 . Pareto charts.How to improve productivity Productivity in an enterprise may be improved by taking the following actions:• • Develop productivity measures for all operations and all departments Develop methods for achieving productivity improvements such as getting ideas from workers.

1 Managing change ________________________________________________ 1. 3. Session learning objectives The learning objectives for this course are that by the end of this unit. 2. Session duration (8 hours) The session on enterprise performance can be delivered in eight (8) hours as follows:Two (2) hours: topic. Session rationale The reasoning behind this session is that change is inevitable and that every enterprise no matter the size operates in an ever changing business environment. Entrepreneurial attributes for the session The entrepreneurial attributes to be inculcated during this session include problem solving and environment analysis abilities. Learner application of knowledge through practical exercises.3 .3 Manage Survival and Growth UNIT 5. 4. The dynamic business environment can cause changes in an enterprise which could impact on enterprise operations and entrepreneurs need to be well prepared so that change does not negatively affect their businesses. trainees will be able to:- 336 . Two (2) hours: Four (4) hours: Introducing theoretical concepts underpinning the Practical demonstrations.UNIT A5.1 Managing Change _______________________________________________________ UNIT 3: MANAGING SURVIVAL AND GROWTH Sub-Unit 3.

state session objectives. ii) Presentation of theoretical concept • Present key concepts of topic to create theoretical understanding among learners. 7. what change is and second how change can affect enterprises. i) Introduction • Introduce the session by linking it to the previous session. The outline below is a guide and can be adjusted by the trainers if necessary. Session learning outcomes The following are the expected session outcomes:• The terms change and change management correctly defined • Strategies for managing change clearly described 6. There should be group work to encourage active participation by trainees. • Relate these to what has already been presented by trainees • Allow for a Question-and-Answer session for clarifications and corrections • Refer learners to the relevant section of the workbook. Instructional methodologies The session on Managing Change should be delivered based on the content in this section. iii) Practical activities and demonstrations a) Role play 337 . • Invite participants to brain storm on first. Learner activities and environment This session can be conducted in a classroom with sufficient space for learner exercises.• • Define change Outline the strategies for change management in an enterprise 5. expected learning outcomes and the learning activities that trainees will be involved in. • Facilitate a discussion on the ideas presented and draw conclusions on the effects of change on business.

Give your comments on the presentations and clarify any issues that may have risen during presentations. 338 . iii) Summary Summarize the session by asking participants to highlight what they learned from the exercise and from the whole topic. Guide the trainees in reconciling what was taught in class with what obtained in the field. Write down the key points on the Board/Flip chart and check level of assimilation of knowledge by asking trainees to identify or describe key points from the session in line with the learning outcomes. Trainers’ Preparation In preparing for this session. the trainer should: - Read through the session content in this session and related referral materials. on the lessons drawn from the role play and the implications for small enterprises. It is important for the Trainer to read widely and understand the topic thoroughly. Prepare the role play well in advance and identify the lesson that must be drawn from the role play. Trainer should facilitate an open discussion on the presentations. the groups should present their finding to the class. Facilitate a discussion the role play. b) Learners practical exercises Arrange for trainees to go in groups of four and conduct a field visit where they should interview owners of small enterprises to discuss what changes have had:a) A positive impact of their enterprise b) A negative impact on their business After the field exercise. 7.Prepare a (5 minute) role play on how a company can lose business due to changing customer tastes or changing technology.

Organise all training materials needed for the session (e. Assessment criteria The assessment criteria for this unit are based on the ability of trainees to:• • • Correctly define change Correctly explain the nature of change Be able to employ change management strategies 11. Assessment method The assessment methods should include:i) Individual exercises ii) Group exercises iii) Field exercises vi) Summary examinations 12. g Handouts. cards. performance Flip chart paper. Trainer’s tips Note that change can have either a positive or negative impact on business and that change can be initiated but it can also be arrive abruptly. Stick stuff etc) ) 9. The session must highlight the importance of managing change to the benefit of the enterprise. Session evaluation The Trainer should lead trainees in a participatory session evaluation session exercise at the end of each session. markers. 10. Areas to be evaluated include:• Effectiveness of training methods used • Relevance of training content 339 . This will be augmented by a written end of unit evaluation exercise.

Paul (2001).uk Barclays Bank: www.13.co. Reference Materials and Websites Burns. John (2005). 14th Edition.smallbusiness.palgrave. McgrawHill Companies.entrepreneurmag. Entrepreneurship and Small Business. Gamble.uk 340 . Arthur. Inc.barclays. Palgrave Thompson. Macmillan.com Small Business Services: www.businessadviceonline. Concepts & Cases Chapter 6.: New York Lecture materials: www.com/business/burns Entrepreneur magazine: (US): www.gov.. New York. Strickland A. j. Crafting and Executing Strategy.

Change if left unmanaged can cause the down fall of an organisation. WHAT IS MANAGING CHANGE? In very simple terms. challenges and difficulties it encounters. 341 . means that the entrepreneur must keep his eyes and ears open to be able to identify and understand the changes that are taking place and how they relate to his enterprise’s operations. Such factors include:• • • • • • Changing Changing Changing Changing Changing Changing customer tastes workers demands regarding work patterns skill requirements technology levels of competition government regulations on commerce and trade As a result of this constantly changing environment. an entrepreneur must ensure that the enterprise has the flexibility to adapt to such changes. It therefore. This calls for the ability to manage change.Sub-unit 3. managing change refers to an enterprise’s ability to respond favourably and appropriately to new problems. Different factors in the business environment can cause change in an enterprise. The success of an enterprise depends in part on the entrepreneur’s ability to manage change.1: Managing Change (Content) WHAT IS CHANGE? Change can be defined as an alteration or difference in the way things are done as a result of some developments. This means that the entrepreneur must keep his eyes and ears open to be able to identify and understand the changes that are taking place and how they relate to his enterprise’s operations. Every enterprise no matter the size operates in an ever changing business environment.

overcome inertia. which equally entails change management. Some of these changes can be planned whilst others may not necessarily occur due to planning. which can bring about changes. create support and reaffirm the validity of the proposed changes Steering in order to focus on the system that will guide the process of change and keep it on track • 342 . the abrupt resignation or even death of an employee may result in certain interventions. a SWOT analysis maybe used to measure essential aspects of the enterprise such as its substructures and systems. For instance. STRATEGIES FOR MANAGING CHANGE • Defining the vision as a reference point for the change sought • • Sensitising enterprise members about the eminent change Catalysing to fight resistance. is one of the most common approaches to achieving the desired future state of the enterprise. These four elements are:- i) The present state of the enterprise As was discussed earlier. its leadership and management and its performance and profitability in order to gauge the enterprise’s all round effectiveness and efficiency. the “Strategic Planning Process”.CHANGE MANAGEMENT AS A PROCESS The process of change can be analysed and explained in terms of the dynamics at work between the four major elements of the change process. ii) The desired future state of the enterprise Again as was examined earlier on. its culture and climate. iii) Change through (planned) interventions Sometimes change occurs through some interventions in the course of running an enterprise.

• Delivering to effect the vision and actual transition from the current situation to the planned state Obtaining participation and active involvement of all enterprise members as an essential element to the success of the change process Handling the emotional dimensions which come in form of typical reactions to change Handling power issues because change frequently upsets the balance of power within an enterprise Training and coaching in order to introduce new ways of thinking and behaving as a result of change Communicating actively and effectively as an essential to successful change • • • • • 343 .

participants should be able to:• • Describe the role of strategy in enterprise growth Identify the basic indicators for business growth 5.2 Strategies for Growth _______________________________________________________ 1.UNIT 5. Session rationale The rationale behind this session is that an enterprise is life a human being in that it goes through different stages of development and that through all the growth stages it needs proper guidance and input for it to continue to survive. Session learning outcomes The following are the expected outcomes of this session:- 344 . Entrepreneurial attributes for the session This session will inculcate in the trainees the ability to be success oriented by focusing on the future and growth of the enterprise. demonstrations of Learners guided practical exercises using the learner’s Workbook 2. 3. Four (3) Hours: application of Four (3) hours Introduction of theoretical concepts underpinning the Illustrations and practical concepts. Session duration This session should be delivered in 10 hours as follows:Two (2) hours: topic. 4.3. The session will help trainees to appreciate that an enterprise can only develop into a more established entity if deliberate efforts are put in place. Session learning objectives By the end of this session.

expected learning outcomes and the learning activities that trainees will be involved in. ii) Presentation of theoretical concepts • Present key concepts of topic to create theoretical understanding among learners. and then link the session to the previous one.• • • The term strategy and business growth correctly defined Basic indicators of business growth correctly identified Enterprise growth strategies correctly described 6. Instructional methodology This session on Strategies for Growth should be delivered using the content given in this section as a basis using centred instructional approaches. Emphasis in the classroom set up should be on participatory training approaches to ensure involvement of all participants 7. The framework of session delivery can follow the guideline below. iii) Practical activities and demonstrations a) Group exercises Divide the class into three groups and ask them to discuss how they can embark on enterprise growth the strategies below and to identify the advantages and disadvantages of these strategies:- 345 . • Relate these to what has already been presented by trainees • Allow for a Question-and-Answer session for clarifications and corrections • Refer learners to the relevant section of the workbook and point out the key elements of the session. i) Introduction • State session objectives. Learner activities and environment The learning environment for this session consists of a classroom set up and a field visit. • Open a class discussion on enterprise growth and how it can be achieved • Note down on the board the key issues coming from the discussion and cluster ideas which are similar.

Stick stuff etc) ) 346 . markers. g Handouts. Guide the trainees in reconciling what was taught in class with application of theory to particular situations.• • • Subcontracting for a Clothing manufacturing enterprise Acquisitions for a Food Service Enterprise Joint venture for a Building Construction Company. It is important for the Trainer to read widely and understand the topic thoroughly. Write down the key points on the Board/Flip chart and check level of assimilation of knowledge by asking trainees to identify or describe key points from the session in line with the learning outcomes. the trainer should: - Read through the session content in this session and related referral materials. b) Open discussions Allow the groups to their present work in a plenary session. Prepare the role play well in advance and identify the lesson that must be drawn from the role play. 8. Trainers’ Preparation In preparing for this session. performance Flip chart paper. Give your comments on the presentations and clarify any issues that may have risen during presentations. iii) Summary Summarize the session by asking participants to highlight what they learned from the exercise and from the whole topic. cards. Let trainees discuss and comment on each others presentations. Organise all training materials needed for the session (e.

Areas to be evaluated include:• Effectiveness of training methods used • Relevance of training content 13.: New York Lecture materials: www. Concepts & Cases Chapter 6. Palgrave Thompson. Entrepreneurship and Small Business. Strategies must always be crafted to suit the specific situation facing an enterprise and must be based on the critical success factors. Trainer’s Tips Note that for any strategy to be successful there must be a strategic fit between objectives of the enterprise and the business opportunities in the environment. McgrawHill Companies. • • • Assessment criteria The terms strategy and business growth correctly defined Indicators for business growth clearly outlined Strategies for enterprise growth correctly described 11. Session Evaluation The Trainer should lead trainees in a participatory session evaluation session exercise at the end of each session. 10. Strickland A. j. Inc. John (2005). Macmillan. Paul (2001).com/business/burns 347 . This will be augmented by a written end of unit evaluation exercise. Gamble. New York. Crafting and Executing Strategy. Reference Materials and Websites Burns.9. 14th Edition.palgrave. Assessment method The assessment methods should include:i) Individual exercises ii) Group exercises vi) Summary examinations 12.. Arthur.

uk Barclays Bank: www.entrepreneurmag.smallbusiness.uk 348 .barclays.Entrepreneur magazine: (US): www.businessadviceonline.co.com Small Business Services: www.gov.

and enterprise profitability. This is the make or break stage of the business. At this stage. Enterprise growth For an enterprise to embark on a growth path. accounting and technical operations. delivering products/services. They include sales levels. the entrepreneur who is usually the owner manager is actively involved in every aspect of the business. and execution abilities c) The operating systems that are in place i) Indicators of Business growth Growth in an enterprise can come in many forms and there are many indicators of enterprise growth. once the enterprise has established itself with sufficient customer base and has employed people in critical areas such as marketing. At this stage. the business aims to establish sufficient customer base and a reputable product/service portfolio to ensure viable business operations. 349 . the entrepreneur must first clarify the long vision of the enterprise and be able to mobilise necessary resources. Control of revenues and expenses is critical at this stage in order to maintain a positive cash flow. From Enterprise establishment to survival At the time of establishment and some time thereafter. what is critical to the success of the enterprise is:a) The owner’s goals for the business b) The owner/manager’s strategic planning. However. The organisational structure of the business is simple and planning is usually minimal. then the enterprise is set to embark on a growth park should the entrepreneur so desire. 2. The Enterprise requires a clear strategy of how the vision will be achieved.2: Strategies for growth (Content) _______________CONTENT________________________ 1.Sub Unit 3. an enterprise is preoccupied with finding customers. capital levels. At this stage.

ii) Strategies for enterprise growth There are many growth strategies that an entrepreneur can embark on in order to grow the business. a carpenter is requested to supply one thousand (1.• Sales volume as an indicator of enterprise growth A growing customer base that results in increased sales volume can be a very good indicates of the performance of an enterprise. • Profitability as an indicator of business growth An enterprise can compare its profits over a period of time to determine if the enterprise is growing stagnant or decline profits can be an indication that the business is not growing. While an acquisition is where a Company A. acquires company B and maintains the name Company A and meanwhile Company B 350 . consistent growth in sales volume is an indication that the business is growing. such a carpenter can subcontract another carpenter to produce the extra 500 desks. It is up to the owner/manager of the business to assess the business circumstances and decide on which growth path best suits the enterprise and a particular point in time. Therefore.000) desks and his capacity can only supply five hundred (500) desks. • Capital levels The amount of capital available to an enterprise will determine to certain extent the level of operation that an enterprise can undertake. if the capital level in a business in growing. For instance. it could be an indication that the business in growing. hence the need for increased capital injection. Below are some of the strategies that an enterprise can use to grow:• Growth through subcontracting A growth strategy through subcontracting entails giving out extra business to outsiders when an enterprise’s capacities accommodate it. Generally. A and B coming together to form enterprise C. • Growth through mergers and acquisitions A merger means two different enterprises.

ceases to exist forthwith. where Company A and Company B go into a joint venture arrangement where Company C is created but both Companies A and B continue existing in their own right. Strategies for growth should therefore be crafted based on the growth areas identified as critical to the success of the enterprise. 351 . For any strategy to be successful there must be a fit between the objectives of an enterprise and the opportunity in the business environment. • v) Growth Strategies through Joint ventures Sometimes growth may be achieved through a Joint Venture strategy. The objective in both cases to increase operating capacity. and enterprise competitiveness. efficiency.

Assign Learners to assess themselves and find out the supporting and hindering attributes they have in starting a business.1 138-06-A INTEGRATED LEARNING PROJECT The Concepts of Entrepreneurship. Guide. LEARNING OBJECTIVES MODULE I: INTRODUCTION TO ENTREPRENEURSHIP TRAINERS AND LEARNERS ACTIVITIES These are the steps for your Learners to establishing an Enterprise Project. Ask learner to identify something they love doing. establish an enterprise and develop enterprise growth strategies.1 . Developing entrepreneurial competences i. Assess.MODULE NO. 352 . ii. SelfEmployment and Enterprise UNIT 1. Find a way of strengthening eth good attributes and limit Identifying a Business Idea i. and Supervise the development of the project. MODULE TITLE: UNIT A1. You are required to: Coach.1 INTEGRATED PROJECT – ENTREPRENEURSHIP MODULE AIM The aim of the module is to apply entrepreneurial competences.

decide the form of your business. and the timing 353 . Ask them check in their community for something that is missing or something bringing unhappiness in the community such as social. Ask the Learners to screen and select a business opportunity. Describe how you will produce. where will the production be located.. Ask the learners to carry out the following assignment: describe your customers and their needs now and in future. Write down what value you will deliver to customers. Indicate how the customers will be informed of your products or services. Developing the Business System i. Ask the Learners to observe if the idea is something new or an improvement on the current solution. Ask the learner to conduct a market research is gathering as much information as you can about the market. Ask the learners to assess the viability of the business opportunity selected. what machines and materials will be needed. iii. Conducting Market Research i. Is the solution provided legal? v. Outline the process of delivering the product or services. Select a business opportunity i. how and who will be employed.ii. develop a business goal. iv. potential customers and your competition is market research. name to the business. cultural or economic problems.

Suggest way that can create an atmosphere of entrepreneurship in your business. Intrapreneurship and It is a way of life and process of creating new value through a new business in an environment of risk to earn a profit and growth through mobilising resources to exploit opportunities. Entrepreneur An Entrepreneur is a person who creates new value through a new business in an environment of risk to earn a profit and growth through mobilising resources to exploit opportunities. Entrepreneurship of Entrepreneurship. ENTREPRENEUR INTRAPRENEURSHIP AND Explain the meaning Entrepreneur. MEANING OF ENTREPRENEURSHIP. Explain entrepreneurship from the point of: Starting your own business Inventing something new A spirit of creative thinking and innovation that embraces an entire organization Intrapreneurship Intrapreneurship is the organizational culture of a business that allows employees to be creative and innovative in solving problem and exploiting opportunities within the limits of the available resources. Give an example from the community you leave. 354 .1.

You have an opportunity to enter the career of entrepreneurship. ROLE OF ENTREPRENEURSHIP IN NATIONAL DEVELOPMENT Outline the role of entrepreneurship in national development. Improved Income. Zambia’s poverty levels at more than 60% are rendering most Zambians without access to social services and minimum income for livelihoods. Job opportunities. what is the importance of entrepreneurship to Zambia: Explain in terms of the following: Variety of goods and services. Expanding tax base Rural urban migration 355 . Entrepreneurship is one of the most critical ingredients necessary to secure economic prosperity for Zambia.2.

TYPES OF ENTREPRENEURS There are different types of entrepreneurs. You may come up with a list. Description Distinguishing Feature Your preference 356 .3. Type Student entrepreneurs Community entrepreneurs High-growth entrepreneurs Hobby entrepreneurs Lifestyle entrepreneurs Social entrepreneurs Women entrepreneurs Select your preferred type of an entrepreneur. The list given is indicative. No.

These are sole proprietorship. limited company 4. partnership 3. limited company. FORMS OF BUSINESSES Outline the forms of businesses. o Business Entity Select one business form. sole proprietorship 2. Business Form No. o Management of the business. partnership. cooperative. public limited company Describe the type of the business from. 357 . There are the five main forms of business. public limited company Disadvantages Selection Select one type of business and give reasons for your choice. Explain the advantages and disadvantages in terms of: o Liability.4. cooperative 5. o Tax. Type Advantages 1.

Describe the form of operations they are involved in. Give example of their products or service. Select the type of business you prefer and give reasons for your choice. Type Operations Product/service Selection 358 . Steps o o o o Identify the types of businesses.5. The type of business is influenced by the sector it belongs to and the operations it is involved in. TYPES OF BUSINESSES There various type of business. Business Type No.

Focus Employee In what position can Merit Demerit you Create own destiny Position: Make a Difference in life Position: Earn High Income Position: Have Fun Position: Risk Loss Position: Long Hours Position: Hard Work Position: Responsibility of Decision making Position: Require high level of Discipline Position: Have security of career Position: Entrepreneur Merit Demerit 1. 5. 3. Steps Explain who employees and entrepreneurs are . 10. 9. EMPLOYEE OR AN ENTREPRENEUR Discuss the merits and demerits of being an employee or an entrepreneur. 8. 2. No. 4. 6. Total 359 . List the merits and demerits of each career.6. 7.

Career selected in the space of position indicate merit for the career and a demerit for the other. 360 .

o Explain how you will deal with the challenges No. The critical decisions to make are what you are going to do in view of the advantages and disadvantages. Factor Benefits Challenges Strategies to Deal with Challenges Ownership Independence Risk Income Age Gender Security 361 .7. o List the challenges. Steps o List the benefits of self employment. There exist disadvantages. SELF EMPLOYMENT There is encouragement from the government for people to become selfemployed. Self employment is attractive with the high levels of unemployment in this country.

Zambia is ranked 165 on the United Nations human development index (2004). overall poverty levels have improved in recent years. HISTORIC BACKGROUND TO THE ZAMBIAN ECONOMY Discuss the historical background to the Zambian economy and its impact on the entrepreneurial growth. However. The multiparty democracy was reintroduced 1991. Child mortality rates are high. manufacturing. Net enrolment rates for primary education are improving. Zambia got independence from the UK in 1964.5 billion. The poverty rate has fallen from 73% in 1998 to 68% in 2004. o Identify opportunities and challenges for entrepreneurship 362 .1 billion to $0.8. Zambia has received extensive debt relief under the Multilateral Debt Relief Initiative (MDRI). school literacy is rising. maternal mortality has increased and deaths from AIDs and child hunger are rising. immunisation coverage is increasing and child death rates are falling (DFID).5 million people. It experimented with two decades of one party rule. In the last four to five years. Zambia’s economic performance has improved and the economy is enjoying modest growth of around 5% per annum. tourism and construction sectors. Over two-thirds of the population in Zambia live on less than $1 a day that is around 7. there has been growth in the mining. The external debt burden has been reduced from around $7. Steps to this section: o Discuss the historical background: o Identify the political and economic trends.

9. The commonest natural resources are: people. lead. emeralds. NATURAL RESOURCES IN ZAMBIA Zambia is endowed with a good stock of natural resources. forestry resources and animals and cultural resources. Zambia Natural Resources Potential Natural Resource Potential Use 363 . coal. water bodies. cobalt. The exploitation of these natural resources is low. copper. zinc. hydropower. Assign potential uses of the natural resources in an enterprise. gold. silver. uranium. Steps identify the natural resources.

The earnings vary from product to product. producing selling products and services to limited markets in commercially and an authorised places. Focal Area Characteristics Growth Informal Sector Factors of Type of Business Structure Location No. The informal sector is an arena of income generation activities for both the unemployed and employees. unregulated and highly competitive. found in rural and urban areas. Complete the table below: No. of Employees Quality of Goods Skills 364 . INFORMAL SECTOR Identify the factors influencing the growth of the informal sector in Zambia.10. Informal sector operators are unregistered income activities. It is a relief sector for individuals who either want to supplement their income or those unemployed youth and adults in all parts of the country. use adapted technology.

11. cattle. beverages. textiles. eggs. fertilizer. flowers. chemicals. Complete the table below: Role of Enterprise in an Economy No. and services (49%). milk. cotton. Zambia has micro. small. industry (29%). coffee. There are local and foreign owned enterprises. manufacturing. medium and large enterprises are various sectors of agriculture. horticulture. construction. tobacco. foodstuffs. pigs. goats. and hide. The industry is represented by copper mining and processing. construction. vegetables. trading. Zambia’s gross domestic product by sector is agriculture (22%). rice. cassava (tapioca). service delivery. sorghum. ROLE OF ENTERPRISES IN ECONOMIC GROWTH Identify the role of enterprises in the growth of the economy. poultry. Zambia’s agricultural products are: corn. mining. sunflower seed. The gross domestic product growth is 5%. sugarcane. Growth Factor Contribution 365 . peanuts.

Employees 6. Customers 8. There are various policy instruments that have a positive or negative effect on enterprise development in Zambia. Competition 9.12. Entrepreneur 2. Marketing 4. POLICY INSTRUMENTS THAT AFFECT ENTERPRISE DEVELOPMENT Outline Zambia’s legislation supporting enterprise development. Ethics Effect on Enterprise Development 366 . Steps o Identify the enterprise areas that can be affected by the policies: o Identify the policy the regulates the enterprise area. o Mention the Government agency responsible for that policy. Public Agency Policy Enterprise Instrum areas ent 1. The policies have various roles. These policies are housed in various Ministries and public agencies. Finance 7. Operations 5. Policy Instruments and Enterprise Development No. Business Opportunity 3. Mergers 10.

There various type of taxes to be paid.13. Steps o Identify the statutory obligations. STATUTORY OBLIGATIONS AND ENTERPRISE MANAGEMENT Outline statutory instruments relating to enterprise management. o State the enterprise obligation. Statutory Obligations and Enterprise Management Statutory Obligations Enterprise Obligation Impact on Enterprise Growth 367 . o Identify the impact on enterprise growth. Enterprise operating in Zambia are regulated through statutory obligations. There are a host of licenses to be applied and other fees.

The supporting institutions have different role they play. training. private and civil societies supporting enterprise development. SUPPORT INSTITUTIONS Identify support organizations for enterprise development There are public. 3. 6. 7. 4. No. There are multifunctional organizations and there are single functions ones. counselling . 2. Area Entrepreneurship Development Marketing Training Technical support Financial Credit Information Infrastructure Supporting Organisations Services 368 . financial support and networking support Steps o Identify support organizations. o Describe the role they play in enterprise development. The organizations offer human resources development. 1.14. marketing support. 5.

and have willingness to initiate action without needing or taking direction from others and have ability to solve problems.Module II: ENTREPRENEURIAL GUIDELINES OF COMPETENCES AND ATTITUDE 15. 7. You set clear goals to know where you are going 2. ENTREPRENEURIAL TRAITS AND Assess entrepreneurial traits and characteristics. You identify and act on new or unusual business opportunities by looking for resources to create something valuable. You are not gambler who throws around money without 369 . You do not tire to hunt for success despite difficulties on the road to success 6. 8. Please complete the questionnaire to assess your traits and characteristics? No Yes 1. You have passion to carry out your idea. 5. a different approach. You are willing to be lonely and make tough decisions and believing you are right despite the majority thinking you are wrong. You are self-reliant. a more thorough application of known technologies or a combination of all three. You know where you are going and how you will get there because you have refined your goal into action and you have put in measures to check progress 9. be it in the form of a new technology. 4. You are committed to your team and the people you work with in the business 3. SELF ASSESSMENT CHARACTERISTICS.

You look for information within the business or its surroundings to help you achieve your purpose or avoid problems Total Percentage 370 .having control over the results of your action 10.

Element Why What do you want to achieve How would you want to achieve your goal What would you do to achieve your goal Who will assist you to achieve your goal When will you achieve the goal Indicator 1. Commercial Exhibitions. changing and the needs of people. 6.16. achieve a little at a time and build on the achievement. start small. Personal and Formal Bankers. Scanning the environment assist you to see what is going on. ENTREPRENEURIAL GOAL Develop an entrepreneurial goal. 371 . Researchers. Investment Centre. Business Associations. Entrepreneurs should reflect on the achievement and challenges over the period. Business Registration Office. These sources are: of Sources No. Generate a business idea. Category Information Sources 5. Friends. Councils. Entrepreneurs need to have a destination to aim for. Scanning the environment involves collecting information from various sources. Sales Persons. Personal and Informal Family member. Consultants. Customers. By having a keen interest in what is going on you will be able to see the needs of people emerging. Employees. The process of generating ideas involves two steps namely: scanning the surrounding (environment) and idea generation.

Bill Boards. Newspapers. Newsletters. Draw on Your Skills Covert your skills into a business 22. Somebody’s waste is Turn waste into something useful for another person’s someone. Written 8. Brainstorm Generate as many ideas as possible without 372 . Treasure 33. Books. Make Use of Your You have been able to do something fro a Experience long time. 24. Catalogues. colour. Travel Come back with something you saw or used not available in you area 28. Improve a product Improve its appearance. There a number of methods you can use to generate business ideas. make it simpler. Explanation No. Improve services Offer a better service of the current services you pay for 25. Can you advise others in the same field at a fee? 23. Seminars. one 27. Suppliers/Agents. Journals. Posters Trade Shows. Research Find out special needs of certain groups of customers 30. Create new value for a Use taxi vehicle for advertising product 32. Modify an existing Make it look luxurious. Professional Organisations The Techniques for Business Idea Generation There a number of ways you can generate ideas. packaging and so on 26. Reproduce the idea Apply a successful idea to new settings 31. function. change the shape. or product into a new make it smaller. Technique 21. Oral Industry and Trade Contacts Magazines.7. Use You Hobby Do you like music? Set up a music store. Listen to complaints Create a solution to a complaint 29.

38. if it is tall make it short n advice versa. Buy a note book. Generation of Business Ideas Once you start thinking you will be generate hundreds of ideas. touch and smell. Technology application 40. if it is long make it short. The list will be determined by how much you use your imagination. do not worry about how good or silly the idea is: you will be surprised how good the idea was in later days or years. The tradition of keeping all the ideas in your head is not useful. if it is for very one make it for one person. Selling cooking oil from a pump Offer the same service in a short time Technological developments these days are so fast and abundant that one can come up with so many ideas of unique applications If a product is small make it big. 373 . Write all the ideas that come into you mind in the notebook. Adding or Subtracting checking the usefulness one may turn out to be a gold mine Turn research ideas from research institutions into business Create a pen with functions of a musical instrument Create a picture of a business in your mind Add or subtract a few features to the product or service to make it suitable in terms of use or price. if it is slow make it fast. Combine uses into one product 36. see. At this stage. Visualisation 37. Commercialise research recommendations and inventions 35. Creation of opposites The list of methods of generating ideas does not end there. Time framing 39.34. You will be able to come up with other methods are you listen.

Allocate scores to each question. Customers You are knowledgeable of the potential customers for this particular business? 16. Where do you go from there? Having prepared a reasonable list of ideas you must examine each business idea so that you end up with a short list of business ideas with the highest chance of success. Business Knowledge 374 .Selecting the Business Ideas It is promising that you have a list of the business ideas. Business Idea Assessment Form Name of the Business Idea: No. If the answers to all the questions is YES the total score is 12 and 0 if all your answers were No. Experience and Yes your No Score You have knowledge and skills that will help you run this type of business? You have experience that will help you to run this business? You know about the products and services in this business? 17. Simple Scoring Method for Business Ideas. Score: Yes = 1 and No = 0. Personal The business suits characteri personal stics characteristics? 14. Focus Question 13. Business Support You know where to get advice and information about this business 18. You can use the scoring suggested below. You may select a business idea if it scores above 5 nad review it or reject it if it scores below 5. Knowledge skills 15.

This will be the only business of this kind in your area? Profitability You have reasons why you think this business will be profitable? Human You know the type of Resources. 23. 21. listing and assessment you are now ready to go further to develop this business idea into business opportunities through spending time assessing. 375 . Competition 20. premises or qualified Equipment staff required for this and business? Materials Finances You are sure you will be able to get the finances to provide what is needed in the business? resources You know where will you get the resources to start this type of business Business Growth You know this business has potential for growth? TOTAL SCORE After the business ideas identification. 24. 22. researching.19. materials Premises. equipment. developing and planning.

376 . Select data gathering techniques to fill in information or audience gaps. target market and competition. Decide who will collect information. legal frame work. the business scene. Identify methods of collecting information. Reflect on the strengths and limitations of that information including. Steps to conducting the environmental scanning: Clearly state the purpose of collecting information Decide on how the information will be collected desk or field study or both. human resources. Identify the sources of information. and verify existing information Collect scanning information from other organizations. Analyse and translate the information into actionable Carrying Out an Environmental Scan Carrying out the environmental assessment will assist you identify a number of issues in the natural environment. technologies and social issues. PROCESS OF ENVIRONMENTAL SCANNING Conduct an environment assessment. detect emerging issues. Identify who is responsible for the process. Assemble the information. Assemble existing information on issues and needs.17.

trends in consumer preferences. You conduct the feasibility study before preparing the business plan. A feasible business is one where the business will generate adequate cashflow and profits. What barriers to entry do you face in entering this market with your new company? Some typical barriers are: o High capital costs 377 . The business idea can be a new start-up business. discussing with other people indicate that it is a good business idea. an expansion of current business operations. or a new enterprise for an existing business. FEASIBILITY STUDY Conduct a feasibility Study. Description of Feasibility Study Feasibility study is an examination to see whether your business idea is viable or practical. remain viable in the long-term and meet your entrepreneurial goals. The feasibility study aims at answering your question of “should I continue with the proposed business idea?” All the feasibility activities are aimed at answering this question. Conducting a Feasibility Study You have in your hands a business idea that you like. Growth potential and opportunity for a business of your size.18. Once you have carried out a feasibility study then you can proceed to write a business plan. Casual observations. You have good further by reading more about it but can it work? Market Assessment Find out the following: What is the total size of your market? What percent share of the market will you have? Current demand in target market. the purchase of an existing business. withstand the risks it will encounter. The feasibility study outlines and analyzes several alternatives or methods of achieving business success. Trends in target market—growth trends. and trends in product development.

what will the product do for the customer? Customers Who are your targeted customers. and their geographic locations. their characteristics. otherwise known as their demographics. the demographic factors might be: Industry (or portion of an industry) o Location o Size of firm o Quality. That is. o Age o Gender o Location o Income level o Social class and occupation o Education o Other (specific to your industry) o Other (specific to your industry) For business customers. technology.o o o o o o o High production costs High marketing costs Consumer acceptance and brand recognition Training and skills Unique technology and patents Unions Transport costs How will you overcome the barriers? How could the following affect your company? o Change in technology o Change in government regulations o Change in the economy o Change in your industry Product What are the most important features? What is special about it? What are the benefits. and price preferences o Other (specific to your industry) o Other (specific to your industry) o 378 .

or environmental regulations o Special regulations covering your industry or profession o Zoning or building code requirements o Insurance coverage 379 . certain customers. or in certain locations? Will you have important indirect competitors? How will your products or services compare with the competition? Production Assessment How and where are your products or services produced? What are the methods of: o Production techniques and costs o Quality control o Customer service o Inventory control o Product development Location Assessment What qualities do you need in a location? Is the location you need available? What are the physical requirements: Is the amount of amount of space needed available? Is the type of building you need available at a reasonable cots? Is power and other utilities like water available? Legal Environment Assessment Are you able to meet the conditions fro the following: o Licensing o Permits o Health. workplace. or just for certain products.Competition What products and companies will compete with you? Will they compete with you across the board.

copyrights. that is. or purchased) Human Resource Assessment Will you be able to engage the number of employees needed? Are the skilled staff and professional you need available? Do you know where and how will you find the right employees? Will you be able to meet the pay structure Have you developed a human resource development plan? Do you have schedules and written procedures prepared? Have you drafted job descriptions for employees? Suppliers Assessment Have you identified key suppliers? Credit Policies Assessment Do you plan to sell on credit? What terms will you offer your customers. have you created an organizational chart showing the management hierarchy and who is responsible for key functions.o Trademarks. how much credit and when is payment due? Will you offer prompt payment discounts? Management and Organization Assessment Who will manage the business on a day-to-day basis? What experience does that person bring to the business? What special or distinctive competencies do the individuals need to have? Is there a plan for continuation of the business if this person is lost or incapacitated? If you’ll have more than 10 employees. existing. or patents (pending. 380 .

Internal Rate of Return 381 . Payback period = Cash investment/annual cash inflow A business project requires an investment of K 50. the payback period can be computed dividing cash outlay by the annual cash inflow. Net Present Value Calculate the present value of cash inflows and outflows of your investment proposal using the cost of capital as the suitable discounting rate and finding the net present value by subtracting the present value of cash outflow from the present value of cash inflows. 000. 000/12. and generates an annual cash inflow of K 12. 500. The payback period is as follows: Payback period = 50. 000. 500. If a business generates constant annual cash inflows.000. 000. 000 = 4 years.Professional and Advisory Support Assessment Do you intend to have the following in enterprise? o o o o o o o o Board of directors Management advisory board Attorney Accountant Insurance agent Banker Consultant or consultants Mentors and key advisors Investment Assessment Techniques Payment Period The number of years required to recover the original cash outlay invested in a business project.

Focus Scanning Method BPEST Application Identify external issues that may affect the business operations Expected Results 382 . socio economic background. Business opportunities can be sourced from: The Environment – the natural resource base of an area. Selection of Business Opportunities You can apply the results of the scanning and feasibility to identify to select the business that is presents the most attractive option. Calculate the rate at which the NPV is zero. Sources of Business Opportunity.trading and business activities in the are and the trends for new demands of goods and services. knowledge. An entrepreneur’s first task after assessing himself/herself is to identify and select an attractive business opportunity. Target market – expectations of the target group in terms of their skills. Availability of resources to develop the business opportunity. An acceptable business opportunity is a combination of: Confirmed need in the community. Population .industries based on minerals. and financial resources. Capability of an entrepreneur. agriculture. marine and other natural resources Business Opportunities Selection Criteria. You need to be focused and quite serious in you effort of identifying business opportunities.occupational pattern. Select a business opportunity. Current business Situation. 2. Resources .IRR is the rate which equates the present value of cash inflows with the present value of cash outflows of an investment.

Porters Five Force Model Isolate competitive forces that influence the level of competition in an industry Identify how the current resources and capacity of the business can manage the situation in the environment Assess how you can create the greatest possible value for your customers. SWOT Value Chain Feasibility Payment Period Stu dy Net Present Value Internal Rate of Return 383 . as well as your best route to profit maximization Calculate the number of years required to recover the original cash outlay invested in a business project Find the net present value by subtracting the present value of cash outflow from the present value of cash inflows. Find the rate which equates the present value of cash inflows with the present value of cash outflows of an investment.

Decide that the business is not viable and abandon it.Decision Making This step involves making one of the three possible decisions listed below: Decide that the business opportunity is viable and move forward with it. 384 . Do more study and or examine additional options.

385 . You can: o Accept it – Observe it o Transfer it – You can insure o Reduce it – put in internal measures o Eliminate it – Introduce new technology. A risk management process involves: o methodically identifying the risks surrounding your business activities o assessing the likelihood of an event occurring o understanding how to respond to these events o putting in place systems to deal with the consequences o monitoring the effectiveness of your risk management approaches and controls There are four ways of dealing with. Apply these strategies to risks you can identify under marketing. ways of doing it. management. operational and financial risks.19. or managing. each risk that you have identified. MEASURES TO MANAGE RISKS Propose measures to manage risks Identify risks Risk management allows you to examine your business plan and identify the risks of not achieving your business' objectives.

20. production. informal and formal sources. 3. Monitor the progress of fundraising activities. 6. ENTERPRISE RESOURCES MOBILISATION Mobilise enterprise resources. 2. Prepare an action plan. Evaluate the results of the resource mobilization. Repeat the process 386 . 9. List all the types and amount of resources you need to develop your business. 8. Prepare a business plan. Without resources nothing will be produced or sold. Examine funding prospects including yourself. and management. 10. The following steps can help you mobilise resources: 1. Resources are inputs that go into an enterprise to ensure that activities are carried in marketing. Review the plan. To mobilize resources you must be well organized. 4. Put plan into action 7. Prepare a fundraising strategy (objectives and approaches). 5.

. 18. 3. timely and consistently. 19. Socialise at gatherings and be visible. steps. Ask for who. Develop and use your ability to ask questions. meetings and travels. 15. and maintain contact 387 . persist. 14. connections. Get to know yourself well. Carry with you business cards to all gatherings. brief and focused information about you. 6. places. Develop a tracking systems of contacts. 9. 13. ENTERPRISE NETWORK Networks are groups of individuals and organizations sharing resources. Conduct follow up actions decisively. 17. Conduct follow ups on contacts. Attend social gatherings. 5. learn. Do not make empty promises. Steps to establishing a network 1. Create relationships with the business cards. 10. Present your skills not your job. 12. Listen more and talk less. 4. Start with your family and friends. Listen. Prepare informative business cards. To be prepared to communicate quick. contacts and timings. Establish long term business contacts and referrals. 16. 8. 11. Develop a data bank. 2. recommendations. 7. 20. Networking is a skill to seek and provide resources to a grouping with similar goals Develop an enterprise network. how to do it. Look for unique opportunities.21.

Spokespeople Prepare your enterprise communication plan. Key Messages 7. Situation Analysis: External or Public Environment 3. Plan will show where you have come from. Campaign/Organizational Goal and Key Objectives 4. Timelines 11. 388 . Strategies 8. Situation Analysis: Organizational Background 2. COMMUNICATION PLAN Finding out how to communicate important messages to key stakeholders of a business in the most effective way possible is not an easy task. Tactics 9. where you are and where you are going with your communication. Timing 10. Prepare communication strategies. Communication Objectives 5. It requires planning. Target Audiences 6. A typical communication plan outline will looks this: 1.22.

3. ICT stands for Information Communications Technology. machines and telephones.23.Commerce 389 . Standard Office Applications Word processing Spreadsheets Database software Presentation software Desktop publishing Graphics software Email Internet 4. E. Select the ICT application for you enterprise. APPLICATION OF INFORMATION AND TECHNOLOGY (ICT) IN AN ENTERPRISE COMMUNICATION You have come across the word ICT in various situations. Give reason for your selections. Specialist Applications . at school.Examples (there are many!) Accounting package Computer Aided Design Customer Relations Management (CRM) 5. hospital. college. vehicles.

Organizing -To what extent are you making optimum use of the resources required to enable plans to be put into action successfully.24. Planning . and measuring results.Have you decided what you what to achieve in the future (today. Management also covers recording and storing facts and information for later use or for others within the organization. setting goals and objectives. next week. Management is the process that includes strategic and business planning. BUSINESS MANAGEMENT FUNCTION Develop a business management function check list. deploying the human and financial assets needed to achieve objectives. managing resources.) and to generate plans for action. etc. 2. next five years.how are you going to use skills in these key areas to get others to play an effective part in achieving plans? 4. Leading/Motivating . 3. next year. Controlling – how will you check the progress against plans which may need to be modified upon feedback? 390 . Management functions are not limited to managers and supervisors. next month. Every member of the business has some management and reporting functions as part of their job Apply this Management Function Check List 1.

Propose ways in which you can: Assess your strengths and weakness. Make others feel important. openly and receptively. Show people that you trust. Learn not to worry. and enable employees to contribute toward the effectiveness and success of the business.. and think before you criticize. Listen intently with a an interested look. Recognize. Set clear goals. cooperative teams with shared vision. and (non financially) reward those you work with. motivate. Crowd your mind with good thoughts. Practice with energy and real desire to be a good leader. Propose application of leadership principles. Admit mistakes. praise. Communicate regularly. Be enthusiastic. Create a self motivated. Look at things from the point of view of the other person. LEADERSHIP Leadership is the ability of an individual or groups of individuals to influence. respect and care about them.25. Express genuine interest in others. Do not lose your focus by being distracted. 391 .

Complete the table Stage Name I II III IV Forming Storming Norming Performing Characteristics Entrepreneurial strategy 392 .26. Develop team building strategies. Team building is essential as a part of a strategy management for business development. TEAM BUILDING Team building is a planned effort to improve communications and working relationships by way of any planned and managed change involving a group of people with shared goals and principles.

A marketing plan may be component of your business plan. Sales promotion and publicity). Marketing Strategies Marketing Goal. Type of competitors. o Promotion (Advertising. Marketing Purpose. o Product (Characteristics and benefits). Market Trends. Target market. Level and type of competition. discounts) 393 . It can prepared fro a year or for five years. o Price (Level. purpose and goal. You may use this guide to develop the marketing plan: Assess the Market Situation Type of Industry. A Marketing Plan is a written document that outlines the actions necessary to achieve a specified marketing objective. Customer Profile.27. It can be developed for a product or service. Marketing Objectives. Selling. o Place (Distribution and places). MARKETING PLAN Assemble a marketing plan. flexibility.

in the right quantity and quality. shipment. in the right place for the direct benefit or use of the business. delivery. 394 . Procurement or buying usually consists of seven steps: Information Gathering: search for suppliers who can satisfy the requirements.28. Renewal: After the experience would you like to continue with the same supplier or change. Negotiation: Undertaken negotiations on price. BUYING Outline the buying process. availability. at the right time. training and payment are completed according to agreement. installation. guaranties and return of damages. Background Review: consulted references for product/service quality. quantities deliveries. testing. Buying is procurement. Fulfillment: Ensure that supplier preparation. Supplier Contact: Identity one or more suitable suppliers have been identified. It is the acquisition of goods or services at the best possible price. Service support – evaluate the performance of the goods or services and ensure that service support is provided.

It is a stepby-step process that will show how you will acquire new customers.29. Find out what is happening in your industry. and how you will increase business from existing customer base. Sales plans are about targets and numbers. The key feature of sales plans is its use of unit projections and sales values. Suggest areas of improvement 395 . Steps Segment your target market. Develop sales strategies o What are you going to sell? o How much do you want to sell? o How are you going to interest the customers? o Who and how many people will be selling? o How are you going to improve their sales skills? o When you are you going to sell? Measure the perform of your sales effort. A sales plan is tactical plan for achieving marketing objectives. SALES PLAN Prepare a sales plan.

other suppliers. Many businesses and individuals starting enterprises assume that they know how their customers look at their products and services. product specifications. Design a marketing plan 396 . Market research I s finding out the customer needs. Many times their ideas about what the customer wants are simply guess work. Conduct a simple market research by following these steps: Define the market problem Analyse the market situation Collect data that is specific to the problem through reading documents and going to the field to ask individuals and organizations familiar with the target market Analyse and interpreting the data to get the meaning of the target market Propose solutions to the market problem. pricing.30. communication. distribution. and other marketing issues. In a market research there are many questions asking about the customers’ characteristics. MARKET RESEARCH Conduct a market research.

direct labour. 397 . assist pricing. Steps o Identify the four main parts of costs – direct material. o Add a predetermined percentage of cost as profit to the cost o Compare your prices with other products in the market o Make adjustments. budgeting. o Settle on the price. tendering. COSTING AND PRICING Cost and price a product or service. direct expenses and overheads.31. monitor expenditure and give value to stock. o Add all costs that go into a product that go into making a product. Costing will provide information to make decisions.

398 . organizing and controlling an enterprise’s financial resources. Utilise funds properly. Financial management is a managerial responsibility and activities concerned with planning. Roles of Financial management Raising funds.32. Using funds properly. Outline how you will: Raise funds. FINANCE MANAGEMENT Outline the roles of financial management.

Financial resources may be needed to procure machinery. There are formal and informal sources of finance. materials and pay workers. Source Amount of Funds Conditions 399 . Source Amount of Funds Conditions Non Formal Source of Finance No. Source of Finance Formal Source of Finance No. equipment. SOURCES OF FINANCE State source of finance for your enterprise. To start business operations you will need financial resources.33.

The journal and general ledger are the main company’s financial records. Profit and Loss Statements – presents the summary of revenue. These records remain as a permanent track of the history of all financial transactions since day one of the life of your company. The information from the records is the basis for financial statements. The Statements are: Balance Sheet – communicates information about the assets. cash outflows and net cash balances over a period of time Steps to Interpreting Financial Statements Prepare the projected financial statements. expenses and net income of the firm over a period of time. Cash Statements – outlines the cash inflows. These constitute the central “books” of your system. Interpret the financial statements using the ratios below: Liquidity Ratios: Current Ratio= current assets/current liabilities. liabilities and owners equity at a particular date. 400 . Leverage ratio: Debt –equity ratio= long term debt/equity Activity Ratio: Inventory Turn Over = cost of goods sold/average inventory.34. Balance sheet. and every transaction flows through the general ledger. namely. Quick ratio= cash and book debts/current liabilities. Income Statement and Cash Flow Statement. FINANCIAL STATEMENTS Interpret financial statements.

It is prepared for the purpose of expressing expectations.Inventory turn over= sales/inventory. =Gross profit/ sales Net profit margin = net profit after taxes/sales 35. coordination and control of financial resources. Other budgets you mat prepare are: Sales Budget. communication.cost of goods sold/sales. Cash Budget. = Debtors x Days in a Year/Sales Total Assets Turn Over Total assets Turnover= sales/total sales Profitability ratio Gross Profit margin = sales. Debtors Turnover and Collection period Debtors Turnover= credit sales/average debtors. Budget you should prepare are: Operating Budgets – planning of activities of the enterprises among them are production. Recruitment. BUDGETING It is a managerial process of developing plan expressed in financial terms for the enterprises operations and resources over a period of time. Average collection period = Days in a Year/Debtors Turn over. Deployment and Training Budget 401 . machinery and vehicles. Capital Budgets – planning to acquire such things like buildings. sales and purchases.

Prepare the main records listed above and assign some people to manage the records. and licences and certificates. sales force. To make stocks properly you should answer the following questions: How much should we order? When should we order it? Steps o Determine ordering costs (costs of acquiring the say materials including storing. There are sections of the business that need records Financial Records . If there no records you decision will be an exercise of guess work or intuition. Marketing – customer records. Management and administration –staff. In future you may need to make a decision on the direction of business or the use of resources.36. the purchase ledger and the wages book. list of employees and inventory. 402 . building. STOCK CONTROL Develop stock control measures. BUSINESS RECORDS Prepare business records Records are important in a running of a business. the sales ledger. Stocks are the products of an enterprise produced for sale and the components that make up the products to be used later in production. Production – machinery and equipment register. support organisations.the cash book.

403 . o Calculate the economic order quantity – order size at which costs of ordering and holding stock are at the minimum..o Carrying costs – costs incurred for holding a given level of stocks.

Steps to meeting human resources of the enterprise. Develop a human resource plan. HUMAN RESOURCES IN AN ENTERPRISE Human resources are the individuals employed in an enterprise and to that deals with the hiring. firing. Assess the human resource needs of the enterprise. o Recruit and select employees. Link the human resources needs to the business strategies of the enterprises. o Develop work environment relationships. o Establish condition so f service. Set an organizational structure of the enterprise. o Develop employee records and administration. and other personnel issues. o Training and development the employees. training.37. 404 .

Technology Type Costs Efficiency Size Durability After S a l e s S e r v i c e Training 405 . mission and values. A strategic planning process implies a business having a clearer idea of what it is. Steps Develop a Vision. Develop strategic goals and objectives. Prepare an operational plan. TECHNOLOGY IN AN ENTERPRISE The narrow definition of technology is a piece of equipment and the technique for performing a particular production. Assess the external and internal environment. Select suitable technology for an enterprise. marketing or managerial activity. what it does. Formulate a performance assessment measures.38. No. Prepare an operational budget. and what challenges it faces. STRATEGIC PLANNING PROCESS Develop a strategic plan. and its response to its environment.

4. 5 (Highest) 406 . A B C D Grading: 1 (Lowest). 2. 3.1.

and a copy of the work you want to protect. paintings and sound recordings. Get Assistance for a Lawyer It’s best if your lawyer is familiar with each category of intellectual property. process. PROTECTING INVENTIONS AND TECHNICAL INNOVATIONS Identity ways of protecting your ideas. a modest fee. Common uses include protecting the contents of books. The primary purpose of trade marking is to prevent consumer confusion over the origin of the products Patents are by far the most technically demanding branch of intellectual property. Copyrights protect the tangible expression of ideas. which requires a simple form. the government gives back to the inventor an exclusionary right (the patent) to prevent anyone else from making. They include things like a manufacturing process. movie plots. using or selling the invented device or process 407 . or product that has utility to the public.39. so he or she can help you select the appropriate type. the formula for making a product or compound or a business’ customer lists. In exchange for disclosing this new invention to the public. Trade secrets are perhaps the most straightforward: they cover information used in trade that provide a commercial advantage and are not known to the general public. This basic protection may be registered by filing an application for copyright registration. logos and general visual attributes that distinguish a business from its competitors. a patent is given to an inventor of some novel machine. Trademarks protect the product identifiers — the names. Copyright protection attaches when the creator puts pen to paper and creates a tangible expression of the idea. In basic terms.

o Outline the positive effects on the enterprise. family. Gender. 408 .40. BUSINESS ETHICS AND VALUES Identify the way in which you business can be affected positively negative by cultural values and ethics. HIV/AIDS). Steps o List cultural values and social factors (e. Develop measures to prevent and manage HIV/AIDS in the enterprise. Nepotism. Identify ways in which you can mainstream gender in your enterprise. Racism and Tribalism). o List business ethics ( Corruption. o State possible negative influences on the operations of he business.g.

your marketing and your operations to your strategy. Disclose the risks and uncertainties in your business. and provides a yardstick by which progress may be measured and changes evaluated.. The business plan has many forms. Make a first draft fast without concern for perfection. Look for opportunities in the marketplace. and human resource plan. provides the basis for managing the business. A business plan is a planning document that summarizes the activities of a business for a given period of time. Explain the market you are targeting. Keep in mind your intended audience and why you are writing the plan.41. The plan communicates the business elements to lenders and others. Developing the Business Plan o o o o o o o o o o o o o o o Get organised and the energy to write the business plan. Show that the loan will be repaid if you intent to get a loan. Link your products and services. BUSINESS PLAN PREPARATIONS Prepare and present a business plan. A business plan can be seen as a collection of sub-plans including a marketing plan. Start with some of the easy steps first. . Describe your business and your product or services. Create a strategy for your business. production plan. customers and competitors. Find a particular market niche to focus on and a unique strategy? Avoid overestimating sales projections and underestimate costs. the industry. financial plan. Outline how you will execute the strategy. There is however a format that is common: 409 . Evaluate the strengths and weaknesses of each competing firm.

raw materials inventory. capacity.size. location o inventory requirements . warehouse space requirements o equipment requirements o supply chain requirements o fixed cost allocation Finance o source of funds o expected return 410 . layout. finished goods inventory.FORMAT – Business Plan Executive summary o Explains the basic business model o Gives rationale for the strategy Background o Gives short history of company (unless it is a new company) o provides background details such as: age of company number of employees annual sales figures location of facilities form of ownership including o background of key personnel including owners senior managers Marketing o the macro-environment o the competitive environment o the industry o the customers priorities o product strategy o pricing strategy o promotion strategy o distribution strategy Production and manufacturing o describe all processes o production facility requirements .

review your performance. o Give a smile. Will involve: o Prepare well. o After the presentation. o Speak clearly. o Use a wide range of voice tones. o Avoid distracting movements. o Answer questions briefly. o Pause to catch a breath.o break even analysis o monthly pro-forma cash flow statement o existing loans and liabilities Human resources o assign responsibilities o training required o skills required o union issues o compensation o skills availability o new hiring Attachments o Brochures and advertising materials o Industry studies o Maps and photos of location o Magazine or other articles o Detailed lists of equipment owned or to be purchased o Copies of leases and contracts o Letters of support from future customers Presenting the Plan. o Make eye contact wit audience. 411 . honestly and accurately.

42. BUSINESS DOCUMENTATIONS Prepare enterprise documents. There are regulations the enterprise will need to abide by. o Inspections. The responsible Government Ministries and associations can provide you with details. The commonest documents you need to obtain will deal with issues of: o Registration. o Pension funds. Legal requirements vary from one type business to another. o Tax. o Trading 412 . o Workman’s compensation.

rented place or owned place? What are the cost and interruptions implications Make a list of the essential equipment needed to run your business. Take the time to plan the whole set up.43. Are certain regulations for the physical setup? 413 . Do you need to rent office space or can you start your business from home? The area in which you set up depends on the type of business you have. Will you lease or buy furniture. PHYSICAL SET UP OF THE ENTERPRISE Set up the business office. home. o o o o o o Where will you operate from. Keep the features of the equipment to a minimum. Setting up your office takes a lot of thought.

in-line or functional arrangements). dust and radiation exposure to avoid occupational dangers. o Reduce materials waste. o Keep raw materials. o Relate production planning to sales forecasting to avoid bottleneck. o Prepare maintenance and repair schedule. A well organised production process saves time and costs. o Set and improve performance standards. o Reduce adverse conditions of temperature. o Reduce materials handling costs. You must ensure that products are designed for marketing and production in a concurrent process to reduce costs and time to market. PRODUCTION PROCESS Outline the production process.44. 414 . work-in-progress and finished products as inventory to the minimum but safe levels. Production process o Select the right flow of work and layout (fixed position. o Identify potentials areas to save energy.

of days shipments late response time between enquiry and first visit 415 . ENTERPRISE PERFORMANCE State the key indicators Enterprise performance control is the process whereby an a business ensures that it is pursuing strategies and actions which will enable it to achieve its goals.45. first request date average no. The measurement and evaluation of performance are central to control and mean asking four basic questions: o o o o What has happened? Why has it happened? Is it going to continue? What are we going to do about it? Manufacturing and Production Indicators Ability to produce against the marketing plan Indicators concerned with controlling production quality o o o o o o measurement of scrap "most likely reasons" for product failures actual failure rates against target failure rates complaints received against the quality assurance testing programme annualised failures as a % of sales value failures as a % of units shipped Indicators concerned with the purchasing department's external relationships with its suppliers o o o o o o o o o o o inventory levels and timing of deliveries stock turnover ratio suppliers’ delivery performance analysis of stock-outs parts delivery service record % of total requests supplied in time % supplied with faults Indicators of sales delivery and service shipments vs.

competition 416 . competition other facilities vs. non skilled management numbers vs.Sales and Marketing o o o o o o o o o o o o measurements based on "staying close to the customer" customer satisfaction analysis price of products comparisons check on unsuccessful visit reports monitoring repeated lost sales by individual salesmen sales per 100 customers analysis of sales by product line backlog of orders analysis share of the market against competitors share of new projects in the industry time to turn round repairs delays in delivering to customers (customer goodwill) Human Resources o o o o o o o o o o o o o skilled vs. competition Environment o o o o o work place environment yardsticks cleanliness tidiness catering facilities vs. operations staff labour / outside contractor analysis workload activity analysis vacancies existing and expected labour turnover % of overtime worked to total hours worked absence from work cost of recruitment number of applicants per advert number of employees per advertising campaign staff evaluation techniques pay and conditions vs.

Prosperity crisis. Cash Crisis. Management crisis. Within the cycle seven key crises are identified: Starting crises. Delegation crisis. 417 . Leadership crisis. Life cycles are development stages from start through growth and maturity to a stability stage. Propose measures to reduce the level of crisis. LIFE CYCLE OF AN ENTERPRISE State the strategies needed at each stage of an enterprise cycle. This is followed by business decline as a result of management succession difficulties. Enterprise passes through a life cycle.46. Finance crisis.

One of the major complaints about small enterprises is the low level of quality of their products and services. Develop way of regularly and wide product and service quality improvements. Improve the way products and services are delivered to customers. Ensure that management is committed to the values of quality improvements.47. TOTAL QUALITY MANAGEMENT State TQM for the enterprise The concern for quality by enterprises cannot be left to large enterprises. praise and reward employees for quality work. The essential requirement of quality is to look at it from the customers’ point of view. 418 . Procurement should not rely on price alone. Motivate employees at all levels to propose quality improvements. Recognise. Introducing TQM requires: Incorporate quality into all processes. A small enterprise that introduces total quality management has made a strategic decision that will establish it as a unique enterprise and generate the trust and confidence of customers. Training managers and employees in quality management. Build teams among the various departments. Propose quality improvements to your enterprise.

Disturbing familiar relationships and practices. beneficial or dangerous is normally resisted. team members. 419 . Mistrust of the person proposing change. It is advisable to manage change so that disruptions to enterprise operations are avoided. Imposed changes. Propose strategies to manage change smoothly.48. Fear of the unknown. Reluctance to deal with unpopular issues. relationship or enterprise between points in time (A and B). Changes come as a surprise. person. Change means that there is a noticeable difference between a situation. MANAGING CHANGE Employ strategies fro managing change Change will come invited or uninvited to your enterprise. Fear of failure. The reasons for resistance to change are many Not convinced change is necessary. When change occurs whether planned or unplanned.

The starting point is developing enterprise growth strategies. or the job is over. o Recruit people with the right type of personality to work well in our enterprise and implement its values. o Generate a more positive attitude in our company regarding the way money is used to motivate employees and vendors? o Keep expenditure within or below budgeted levels. o Utilize financial information as a positive instrument for tracking and monitoring performance on key activities. Growing a business is possible but one needs to go beyond dreams. o Recruit people with the highest possible level of education and experience. o Key areas in which the company can save money by improving performance. 420 . o Improve accuracy and timeliness of accounting so that information on performance is available as soon as possible after the day. o Develop the physical and technical skills of our people through formal training programs. Finance Strategies Propose ways to: o Explore and taking advantage of every conceivable source of finance to make our business grow. o Introduce profit-sharing to make our people feel ownership of the enterprise. STRATEGIES FOR ENTERPRISE GROWTH Select strategies for growth of the business All entrepreneurs dream of growing their enterprises to large corporations one day. the month. week. o Link compensation directly with performance for every job. Human Resource Strategies Propose ways to o Employ people with a high level of energy and good health.49. The strategies may vary from one enterprise to another.

Product and Service Strategies Propose ways to: o Adjust products/services to meet a psychological need of the client/customer. reduce cost. o Continuously expand and upgrade the product/service knowledge and technical expertise of our people. quality of work. systems. eliminate unnecessary steps. and improve quality. procedures. cost of operations. job positions. encourage cooperation and promote harmony within the enterprise. regulations) that will improve the development and operation of our technology (including product/services). o Apply organizational values. o Become fully knowledgeable about all new emerging technologies that are directly or indirectly related to the business. o Asses the effectiveness of important procedures in the enterprise in terms of their speed. o Selling the products or services to a wider market.. o increase speed. 421 . activities. rules. and whether fully being utilized. o Advertise and sell on the internet. Organizational Strategies Propose ways to: o Establish clear job descriptions for every position o Evaluate the jobs of managers and supervisors to identify tasks that can be delegated to lower levels. o Actively involve and encourage our people to propose increases in efficiency. their personnel requirements. o Identify and adapt new technologies to better meet the needs of our customers. o coordinate and integrate operational procedures. improve communications.o Develop the managerial and psychological skills of our people through formal training and personal guidance. o Introduce new or improved technologies internally that will improve the functioning of the enterprise. o Improve organization (structure.

o Encourage sales through a market expansion pricing policy. 422 . With these examples propose. enterprise growth strategies for your business.o Increase sales outlets and sales personnel.

icaew. “Positive Action Plan – How to Make Every Day a Success”. 1997. 1997 13. McGraw-Hill. 7. New York. 18. Pearson Professional. Iowa State University. Kelly Kevin. 19. 23. Routlegde. 2000 16. Mastering Enterprise. 2001 15. Aldershot. 1999. 1997.Reading Materials Module – 6. Kent. Don Hofstrand & Mary Holz-Clause. New Premier House. Perry Martin. Illustrated World of Internet and E. New Delhi. Fourth Estate. Ricky. 2001. Entrepreneurship and the Growth of Firms. 09. New York. Houghton. 1996. 2002. London. Entrepreneurship and Small Business Mathew. 423 . 1999. 10. UK. 11. Risk Management for SMEs – www. Hill Napoleon. Entrepreneurial Management.Commerce. London. 24. Oct.co. Geneva. 1995. 8 and 9 India. Management Consulting. New York. Small Firms and Network Economies. Livesay Harold C. Mathew Sartwell. Cole G A. A Guide for Communications . Timothy. Piatkus. London. Palgrave Macmillan. 12. London. Planning . Napoleon Hill’s Keys to Success. 1996. Armstrong Peter. 01 – Nov. Birley Sue and Muzyka Daniel. 25. Kubre Milan. Calvin Robert J. Burn Paul. Edward Elgar. Starkey Paul. Maude J. Co-Directors. Networking for Development. New Rules for the New Economy. 1995 21. Palgrave Macmillan. International Training Programme for the New Enterprise Creation . London. London. IFRTD. Mdaan Anil. Ag Marketing Resource Center. Entrepreneurship Development Institute. New York. Griffin W. 2001. Piatkus. 9. Critique of Entrepreneurship – People and Policies. 1998. Letts Educational. 2005. the Internet Investors. Fundamentals of Management.Nigel Atkin’s. CIB. 22. ILO. Dreamland.uk 17.50 REFERENCES 8. New York. 20. Institute of Chartered Accounts. Strategic Management. 1997 14. .

Essex. 27. Communication for Business. and Small Business Management. 2005. Thomas W. Pearson International New Jearsey. Scarborough. 424 . Taylor Shirley.26. 1999. Zimmerer and Norman M. Essentials of Entrepreneurship. Pearson..

produce. iii. Ask Learners to compare what you planned and the actual results. Describe the customers. Outline a what. owners. ii. vi. employees and supporters. Facilitating Enterprise Growth i. Inform. Preparing to Launch the Ask the Learners to carry out the following assignment: i. iii. train and give tasks employees ii. Ask the Learners to increase the size of the business. opening another branch or selling to other areas. ii. Communicate with customers and supporters. Enterprise Assess Enterprise Performance i. Encourage customers to buy. iv. Ask Learners to source financial and materials support from outsiders. Build the business name. iii. Obtaining Financing i. ii. Establish a management team. and supporters and how their needs will be satisfied. theft or loss of stock. Preparing a Business Plan Ask the Learners to carry out the following assignment: i. Hire. Ask the Learner to register their enterprises the registration offices. Ask the Learner to insure the enterprise against fire. Instruct the Learners to consult the Tax authorities on their tax obligation.Registering the Business i. iii. how and when you are going to do in the enterprise. v. sell and follow up. Advise the learners to rework the business plan. 425 . employees. buy. Counsel the Learners to improve the relationship with customers. owners. State what you intend to achieve.

426 . Ask the Learner to develop a succession plan to indicate persons who will take over and when.Handling Management Succession i.

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