TECHNICAL UNIVERSITY OF MOMBASA

NAME: MERCY CHEPKIRUI

REG NO: BBIT/522J/2017

UNIT: ENTERPRENUERSHIP SKILLS

Rationale for studying entrepreneurship skills in context to

small firms
 Financial management skills will help you to run small profitably and protect the financial
investment.
 Having a networking skills will enable Building good relationships through networking will help
you to grow small firms and give the support needed
 Entrepreneurship skills is important, as it has the ability to improve standards of living among
low standard people since it will help generate more income for the people in small firms

 Entrepreneurship skills also help drive change with innovation, where new and improved
products enable small firms to be developed.
 It regularly nurture ventures by other like-minded individuals. They also invest in community
projects and provide financial support to local charities. This enables further development
beyond their own ventures.

Challenges faced by small business enterprise

 Security - Security threats pose a great challenge to businesses and many business owners and
managers employ various means to help prevent or deter would-be criminals.
 Capital -  most of the people does not have enough capital to start a business that will bring
them enough profits some ended up using the initial capital to run their daily life
 Finding right business- people enter into any business just to try their luck but they end up living
a business for another one since they are not comfortable with the previous one
 Competition – dealing with the competitors from the same field of business is giving hard time
for business owners to grow their businesses
 Time management – It is probably the biggest problem, especially for the new entrepreneurs. In
your own business, you’ve to take care of everything unlike a regular job where you only have to
take care of certain tasks.

Solutions to the challenges faced by small business

 Time management solution - Delegate the jobs that don’t require your personal involvement,
Simply eliminate the unnecessary tasks and assess yourself on a regular basis.
 Competition solution -  Bring in something trendy and new in the market. Customers flock to a
business that offers extensive product knowledge and a wide collection of the products they’re looking
for.

 Capital solution –through various ways are there for arranging small business funding starting
from friends and family to conventional bank loans, many experienced entrepreneurs believe that self-
fueled growth model is the best and less-risky one. Instead of trying to establish a big business house
overnight, aim at your primary customers. If you can provide value added services to them, by the virtue
of word-of-mouth publicity, your business will develop automatically.

 Security solution – before setting up a business ensure that it is on a safe place by doing a
research to avoid losses through small issue like theft

 Finding right business solution - Firstly, to attain success in your new business endeavor, you’ve
to have an outstanding product or service that adds value to your customer’s life. Secondly, you’ve to
maintain your ethics. Having said that, you’ve to deliver exactly what you’ve committed to. Because if
you fail to do so, again by virtue of word-of-mouth publicity, you’ll hardly have your business expanded
as you’ll fail to attract new customers or retain your existing clientele. Remember – it’s easier to attract
first time customers, but it’s much more difficult to retain them