INTRODUCTION TO ENTREPRENEURSHIP

EED 126
TABLE OF CONTENT

Topic 1: Understand the meaning and scope of

Enterprise and Entrepreneurship
1. Define an Enterprise in its narrower and wider contexts;
2. Explain different forms of Enterprises;
3. Identify features of the types of enterprises identified;
4. Classify the different forms of enterprises into small,
medium and large enterprises as well as sectoral;
5. Explain the terms: Entrepreneur, Entrepreneurship,
Wage Employment, Self Employment;
6. Identify the facilities and opportunities available
for self employment;
7. Explain clearly the business terrain in Nigeria;
8. Evaluate the role of entrepreneurship in wealth creation.

Topic 2: Understand the History and Government Policy

measures at promoting Entrepreneurship in Nigeria
1. Trace the evolution of entrepreneurship development;
2. Explain the role of entrepreneur in developing enterprises
in Nigeria;
3. Compare Entrepreneurship in Nigeria with Japan, India,
China, Malaysia, South Korea, etc.
4. Explain Nigeria’s values in relation to Entrepreneurship;
5. Describe the role of Entrepreneurship in the development of
enterprises.
6. Explain Government policy measures at promoting
entrepreneurship in Nigeria

Topic 3: Understand the types, characteristics and rationale of

Entrepreneurship
1. Explain types of Entrepreneurs and their characteristics;
2. Explain the classes of entrepreneurship such as: Technological,
Exopreneirship;
3. Analyze life situations people may find themselves in and the
benefits to be derived from the above
situation;
4. Identify the different types of Entrepreneurs: self employed,
Opportunistic, Inventors, Pattern multipliers, etc.
5. Identify the role of Entrepreneurship in business,
society and in self employment.

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Topic 4: Understand the role of Entrepreneurship in
economic development.
1. Identify resources and constraints of Entrepreneurship;
2. Classify the resources into economic, human, knowledge
and time;
3. Explain how Entrepreneurship leads to import substitution
and utilization of local resources;
4. Explain how entrepreneurship leads to socio-economic
development;
5. Distinguish between economic development and
economic growth;
6. Explain the role of an entrepreneur in grassroots /
local economic development.

Topic 5: Understand Entrepreneurial Characteristics

and Attitudes
1. Explain the philosophy, values, scope, need and
characteristics of Entrepreneurship;
2. Explain the profiles of local Entrepreneurs;
3. Demonstrate high sense of innovation, creativity and
independence;
4. Explain the process of acquiring high sense of information
seeking and ability in operating an enterprise;
5. Identify various risks and remedies involved in operating
an enterprise;
6. Evaluate pilot project considering resource, time, personnel,
equipment, money, materials etc.
7. Explain constraints and problem solving techniques;
8. Demonstrate leadership and leadership skills by mobilizing
resources for establishing an enterprise;
9. Demonstrate high level problem solving techniques in
overcoming internal and external constraints.

Topic 6: Understand the Key Competencies and Determining

Factors for Success in Entrepreneurship
1. Identify the key competencies required in setting up a
successful small business; Knowledge, Skill and Traits;
2. Identify key success factors in setting up a small business;
Resources, Ability, Motivation and Determination, Idea
and Market etc.
3. Define individual life goals and link them to
Entrepreneurship;
4. Identify the strength and weaknesses in 3 above;
5. Explain business games and how to play them
6. Explain the behavioral pattern observed in 5 above on:

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 a. Moderate risk taking;
b. Goal setting;
c. Learning from feed back;
d. Taking personal responsibility;
e. Confidence and self reliance.

Topic 7: Know the Motivational Pattern of Entrepreneurs

1. Define motivation;
2. List the objectives of motivation;
3. Identify barriers to motivation and achievement;
4. Explain Thematic Appreciation Test (TAT) scores;
5. Explain how to analyze motive strength from TAT score;
6. Explain the spirit of Achievement Motivation Test (AMT).

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COURSE TITLE: INTRODUCTION TO ENTREPRENEURSHIP
COURSE CODE: EED 126

INTRODUCTION

This course is an introductory one. It aims primarily at influencing,

creating, instilling and inculcating enterprise spirit and developing
entrepreneurial mindsets and deepening student awareness of
entrepreneurial opportunities within and around their environment.

GENERAL OBJECTIVE:

1. Understand the meaning and scope of Enterprise and

Entrepreneurship

2. Understand the history of Entrepreneurship in Nigeria

3. Understand the types, characteristics and rationale of

Entrepreneurship

4. Understand the role of Entrepreneurship in economic development

5. Understand Entrepreneurial characteristics and attitude

6. Understand the key competencies and determining factors for

success in Entrepreneurship

7. Know the motivational pattern of Entrepreneurs

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 TOPIC 1:

UNDERSTAND THE MEANING AND SCOPE OF ENTERPRISE AND

ENTREPRENEURSHIP

INTRODUCTION
This topic deals with efforts to comprehend the concept of enterprise and
its coverage which entail the process of combining resources: human and
materials to produce goods and services for some economic gains. It is
expected that the learners should be exposed to the business world
through enterprise building. Students learn to identify features of the
typical enterprises in their neighbourhood as well as the facilities and
opportunities available for self employment. They should be able to
identify successful entrepreneurs in Nigeria and evaluate the role of
entrepreneurship in wealth creation

SPECIFIC LEARNING OUTCOME:

1. Define an Enterprise in its narrower and wider contexts;
2. Explain different forms of Enterprises;
3. Identify features of the types of enterprises;
4. Classify the different forms of enterprises into small, medium and
large enterprises as well as sectoral;
5. Explain the terms: Entrepreneur; Entrepreneurship; Wage
Employment; Self Employment;
6. Identify the facilities and opportunities for self employment;
7. Explain clearly the business terrain in Nigeria;
8. Evaluate the role of entrepreneurship in wealth creation.

CONTENT

1. Meaning of Enterprise
Wider Context: An idea that is translated into a planned and
implemented activity

Narrower Context: Business venture or undertaking that brings

profit

In its wider sense, an enterprise is any identified idea that is

translated into a planned and satisfactorily implemented
activity. In its narrower sense, it refers to a business venture or
undertaking. Practically all projects and undertakings can be
referred to as enterprise if the following steps are followed:
 idea identification,
 planning,

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  implementation,
 successful completion of an activity, and
 accepting the reward.
2. Different forms of Enterprises

Private vs Public

Profit vs Non-profit
Formal vs Informal
Individual vs Community
Local vs Foreign
Business vs Social
Small vs Large
Manufacturing vs Service
Consumer Vs Industrial

People in a community have many interests and different needs

and wants in their lives. It is the role of enterprising men and
women to identify these interests, needs and wants and
establish specific enterprises through which these interests,
needs and wants can be satisfied. All enterprises provide
satisfying rewards for those who successfully establish them.
Terms used to classify enterprises include private, public,
formal, informal, individual, community, local, foreign, small,
large, business, social, manufacturing, and service, consumer
or industrial. Enterprises that succeed, irrespective of their
nature, come up with irresistible and valued approaches that
contribute to providing solutions to problems, as well as
satisfying the desired needs and wants. The key difference
between all types of enterprise lies in the rewards they provide.
Business ventures provide profits as rewards, while non-
business ventures provide other types of rewards which could
be either physical or psychological. Enterprising men and
women will therefore engage in enterprises depending on what
kind of rewards they expect from them.
Specific enterprises in a community have the potential to
benefit from the existence of all the others. Output from one
enterprise normally becomes input for other enterprises, and
this helps in money circulation among the enterprises and
within the community. The more money that circulates in the

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 community, the more prosperous the community becomes. The
synergistic nature of all enterprises in a community creates an
environment where there are lots of opportunities to be
exploited by enterprising men and women. It is therefore up to
these men and women to identify the opportunities available
and exploit them. Almost all communities have lots of
unexploited opportunities that can increase this synergy if
properly harnessed, to create even more opportunities for
everyone.

3. Features of the Types of Enterprises

4. Classification of Enterprises

 Sectoral: Enterprises are classified along the type of

products produced. There is an international code that helps
you with this classification. It is called the ISIC code
(International Standard Industries code). Below is an
example of some enterprises simply classified to reflect some
of what you may see in your neighbourhood. Students are
encouraged to look around and classify more enterprises.

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 Retail Food and Manufacturing Services Other
Recreation
Newspaper Grocery Machine shop Computer Distributorship
stand store Manufacturer's services Auctioneer
Clothing store Restaurant representative Print shop Wholesaling
Fashion Convenience Medical Landscaping Farming
boutique store equipment Rental service Artist
Bicycle shop Bar/cocktail Food Interior Building
Antique shop lounge processing/ decorating contractor
Camera shop Motel home products Warehousing Brokerage
Art and craft Fashion Industrial and storage Transportation
gallery equipment/ Auto repair Design work
Drugstore components shop Property
Gift shop Cosmetic and Accounting
Liquor store beauty and tax service
Florist products Business
Pet shop franchise
Auto services
dealership Car wash
Employment
agency
Travel/Tours
agency
Real estate
agency
Cyber café
Banking/Forex
Bureaux
Security

 Size: The size of the enterprise may also be used for its
classification. Worldwide this type of classification depends
on either of or both of the capital employed or the number of
staff engaged by the enterprise. Below is the definition
adopted by the Federal Republic of Nigeria.

Micro/Cottage industries are defined as those whose total

investment does not exceed one million and five hundred
thousand naira (=N=1,500,000.00) including working capital
but exclusive of land. The workforce is not more than 10.

Small scale industries are defined as those with total

investment of between one million and five hundred thousand
naira (=N=1,500,000.00) and fifty million naira
(=N=50,000,000.00) excluding land, but including working
capital; and/or a workforce of between 11 and 100 workers.

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 Medium scale industries are defined as those with a total
investment of between fifty million naira (=N=50,000,000.00)
and two hundred million naira (=N=200,000,000.00) excluding
land, but including working capital; and/or labour force of
between 101 and 300 workers.

Large scale industries are defined as those with a total

investment of over two hundred million naira
(=N=200,000,000.00) excluding land but including working
capital; and/or labour force of over 300 workers.

Exercise: Classify the following enterprises, fill in an example of a specific

enterprise you are aware of and identify whether it is of
business or non-business type.

SPECIFIC BUSINESS OR
ENTERPRISE TITLE CLASSIFICATION
EXAMPLE NON-BUSINESS

1. Church

2. Electronics
Company

3. Farm

4. Information
Technology
Company

5. Children's Home

6. Private Hospital/
School

7. Construction Firm

8. Professional Firm

9. Spare Parts Store

10. Motor Vehicle

Service

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11. Supermarket

12. Banking/Forex
Bureau

13. Cyber Café

14. Publishing Firm

15. Travel Agency

5. More Definitions

 Entrepreneurship/Entrepreneur
Entrepreneurship is first and foremost a mindset. Entrepreneur
is a person who habitually creates and innovates to build
something of recognized value around perceived opportunities.
In this definition, all words are key words:
 'Entrepreneur' - can be an individual entrepreneur, but also
an entrepreneurial team or even entrepreneurial organization
 'A person' - emphasizes a personality rather than a system
 'Habitually' - just cannot stop being an entrepreneur
 'Creates' - starts from scratch and brings into being
something that was not there before
 'Innovates' - able to overcome obstacles that would stop most
people; turns problems into opportunities; and sees ideas
through to final application
 'Builds something' - describes the output of the creation and
innovation process
 'Of recognized value' - encompasses economic, commercial,
social, or aesthetic value

'Perceived opportunities' - spotting the opportunity to exploit

an idea that may or may not be original to the entrepreneur;
seeing something others miss or only see in retrospect

What Entrepreneurs Are Like

1. Personality factors

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 o born/made ratio - 50/50, a synergy of genetic and
environmental influence
o motivation and emotion - independence, competitive spirit,
challenge, wealth
o behavioral characteristics - perseverance, determination,
orientation to clear goals, need to achieve, opportunity
orientation, creativity, persistent problem-solving, risk-
taking, integrity, honesty, internal locus on control
o personality attributes - preferred styles: extrovert/introvert;
sensor/intuit; thinker/feeler; and judger/perceiver
2. Environmental factors
o family background - entrepreneurial heritage
o age and education - begin entrepreneurial activity early; are
not over-educated
o work experience - most entrepreneurs first gain some work
experience in the line of business they later start up
3. Action factors
o making the difference - initiate change and enjoy it
o creating and innovating - a continuous activity, seeing
creative idea through to the end, and then start climbing
another mountain
o exploiting opportunities - able to see or create opportunities
that other people miss
o finding resources and competencies - experts at exploiting
contacts and sources
o networking - expertise oriented; know when they need
experts and how to use them effectively
o facing adversity - resolve problems under pressure; turn
problems into opportunities
o managing risk - not adventurers, but manageable risk
takers; their success lies in caution, learning, flexibility and
change during implementation
o controlling the business - paying attention to details and
essential ratios; exercising strategic control over their
business
o putting the customer first - listening to the customer and
responding to the customers' feedback
o creating capital - financial, social, and aesthetic

 Wage Employment

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  Self Employment

6. ADVANTAGES AND CONSTRAINTS OF SELF-

EMPLOYMENT
1. ADVANTAGES OF WORKING FOR YOURSELF
Those who choose self-employment as a career usually do so for five
basic reasons: personal satisfaction, independence, profits, job security
and status.
a. Personal satisfaction: To some people, the chief reward of working

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 for yourself is personal satisfaction. Personal satisfaction means
doing what you want with your life. Being self-employed will enable
you to spend each work day in a job you enjoy. For example, if you
like photography, you may start your own studio. Each time a
customer is pleased with a portrait, you will receive personal
satisfaction.
You may receive satisfaction from aiding the community in which
you live. Self-employed persons supply goods and services and
create jobs for others. They also buy goods and services from other
local enterprises, borrow money from local banks, and pay taxes.
b. Independence: Another advantage of being a self-employed person is
independence. Independence is freedom from control of others. You
are able to use your knowledge, skills and abilities as you see fit.
When you are self-employed you are driven by spirit of self-reliance
and individual survival. Compared to those who work for others,
self-employed persons have more freedom of action. They are in
charge and can make decisions without first having to get the
approval of someone else.

c. Profit and income: One of the major rewards expected when starting
a new business is profit. Profit is the amount of income left after all
expenses have been paid. Profits go to the owner of a business.
Being self-employed, you would be able to control your income. Very
often, increased time and effort put into the enterprise results in
increased income. This is not often the case when you work for
someone else. How much do you want to earn each year after your
business is running smoothly? Do you want to make 2,000, 5,000,
10,000 or more a year? It’s important to decide on income because
different types of businesses have different income potentials. A fast-
food restaurant has one income potential while a small
manufacturing business may have quite another. It’s probably
tempting to set your goal at a very high level – say 15,000 a year.
Many businesses have the long-run potential of being successful;
however, many businesses don’t become profitable operations very
quickly. One way to establish a personal income goal is to answer
the question “How much do I want to be making (per year) six years
from now?”

d. Job security: Many enterprises are created by persons who are

seeking the kind of job security that is not available elsewhere. Job
security is the assurance of continued employment and income.
Self-employed persons cannot be laid off, fired, or forced to retire at
a certain age.

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e. Status: Status is a term used to describe a person’s social rank or
position. Self-employed persons receive attention and recognition
through customer contact and public exposure. As a result, they
may enjoy status above that of many other types of workers. Closely
related to social status is pride in ownership; most people enjoy
seeing their names on buildings, vehicles, stationery and
advertisements. To some degree, all people seek status. Businesses
have their status too. There are high-status businesses and low-
status businesses. For example, garbage collection is a low-status
business. Some people are very interested in the status of their
business and others are not interested at all. It may be an important
consideration in selecting the type of business for you. The key is to
choose a business that has a status that you’ll feel comfortable with.

f. Flexibility: Individuals who become self-employed have options to

start enterprises in all categories and sizes depending on their
capabilities. Self-employment also gives the individual the job of
being an employer and a leader rather than an employee and a
follower.

2. CONSTRAINTS OF WORKING FOR YOURSELF

In addition to knowing the advantages of self-employment, you should
also be familiar with the disadvantages: possible loss of invested capital,
uncertain or low income, long hours and routine chores.
a. Possible loss of invested capital: One risk of being self-employed is
the possibility of losing your invested capital. The term invested
capital refers to the money the entrepreneur put into starting the
enterprise. As a general rule, the riskier the business, the greater
the profit potential. If the enterprise succeeds, profits may be high. If
the business fails, invested capital may be lost; the entrepreneur
stands to lose a lifetime of personal and family savings. It may take
years to repay banks, suppliers and individuals who loaned the
money to get the business started.

b. Uncertain or low income: Another disadvantage of owning your

business is the possibility of uncertain or low income. Unlike the
salaries of employed workers, profits usually vary from one month to
another. This is true even in well-established businesses. When
income is available, there still may not be enough to meet personal
and family needs. This is often the case during the first six to twelve
months of operation.

c. Long business hours: Entrepreneurs do not work just forty hours a

week; they do not punch time clocks. Many self-employed persons

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 work fourteen or more hours a day, six or seven days a week. The
owner is often the first to arrive at the business in the morning and
the last to leave at night. Business hours are set at the convenience
of customers, not the desire of the owner. For example, many
market shops are open from 8:00 a.m. to 9:00 p.m. Some
entrepreneurs feel they cannot leave their businesses for more than
one or two days at a time.

d. Routine chores: Running your own business may involve routine

chores you do not like to do. You also need to be a jack of all trades.
This can sometimes be a challenge if you do not join with others in a
partnership or you cannot raise sufficient funds to allow you to
employ other people.

e. Risks: A risk is always a risk. However, you stand the best chance of
success if you are prepared to take calculated risks. Calculated risks
allow you to estimate the chances of failure or success without
taking a gamble. Very low risk ventures have less reward in terms of
profits and may lead to limiting your ideas and their follow-up.

f. Time involvement: Starting a small business takes a lot of hard

work. In fact, it may consume most of your day in the first few years.
But in the long run, work effort and personal involvement on the
part of a small business owner can vary greatly. In many established
small businesses, day-to-day activities can be turned over to a
manager. Decide on the personal involvement and work effort you
would like to put into your business in the future (six years from
now). Quite conceivably, you’ll want to continue to be fully involved,
or maybe you’ll prefer to be only partially involved or not involved at
all.

g. People contact: How do you feel about working with people? Do you
really enjoy it, or do you wish you could always work alone? Or are
you somewhere in between? There are really three types of people
contact in a small business: contact with customers, with
employees, and with suppliers. Most small business owners don’t
mind the contact with employees and suppliers, since the owner is
usually on the most comfortable side of the relationship. The owner-
customer relationship, however, differs greatly depending on the
type of business you’re in. For example, in selling real estate,
personal aggressiveness is important. If you don’t enjoy personal
selling, don’t choose a business where it’s required. Many
businesses have a much more impersonal sales approach. In most
retail operations, for example, successful selling depends more on
good merchandise, fair prices and advertising than it does on
personal contact with the customer. An extreme example of

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 impersonal selling is mail order, internet or e-mail, where you never
even see a customer (the customers send in orders and the owner
sends out the merchandise).

7. Business Terrain in Nigeria

The indispensability of the small-scale, private sector enterprise as the
dynamic engine needed for general economic development has been
recognized. Nigeria, taking the cue from other developing countries at
various times since the 1970s, has designed and introduced a variety of
measures to promote small and medium scale enterprise development.
Over the years these measures had included fiscal, monetary and export
incentives.

Fiscal incentives introduced included tax holidays and tariff concessions.

For instance, small enterprises were given a tax holiday for the first six
years of their operation.

Monetary Incentives: In terms of monetary authority support, the Central

Bank of Nigeria introduced credit guidelines requiring commercial and
merchant banks to allocate a portion of their loanable funds to small
enterprises.

Development Funds: A number of developmental financial institutions

and schemes were also established to aid the development of the small
and medium enterprises (SMEs) in the country. These included:
 The Nigeria Bank for Commerce and Industry (NCBI),
 Nigerian Industrial Development Bank (NIDB),
 Nigeria Agricultural and Cooperatives Bank (NACB),
 The “Peoples Bank” in the 1980s;
 The National Economic Reconstruction Fund (NERFUND), and
 The World Bank SME I and SME II loan schemes.

It is pertinent to note that NCBI, NIDB and NERFUND have been merged
to form The Bank of Industries (BOI); and the new National Agriculture,
Cooperative and Rural Development Bank (NACRDB) is a merger of
Peoples Bank, Family Economic Advancement Programme and the
Nigeria Agricultural and Cooperatives Bank (NACB).

There were also export incentives from the Nigeria Export-Import Bank
(NEXIM) to stimulate export loan facilities to SMEs, and export duty
draw-back schemes administered by the Nigeria Export Promotion
Council (NEPC).

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Other incentive programs were technical in nature, such as the provision
of manpower training, appropriate machinery selection and installation,
machine repairs and maintenance, and extension services. These
services were provided by institutions such as:
 The Industrial Development Centers (IDCs)
 The Center for Industrial Research and Development (CIRD),
 The Center for Management Development (CMD),
 The Project Development Agency (PRODA), and
 The Raw Materials Research and Development Council (RMRDC)

REGULATIONS AND YOUR BUSINESS

INTRODUCTION

You may not think that your small business can attract the attention of
any government or their agencies, but it does. For any business, even the
smallest, to grow and actually benefit from all the helps that are offered
by the government or its agencies, it would have to comply with a
number of its Local, State and Federal regulations. It is not in the long-
term interest of your business to ignore or avoid these regulations. So
you should take the time to work with your Business Support Counselor
to find out the applicable regulations for your type of business.

Bear in mind that regulations vary by industry. If you are in the food
service business and you are located in the FCT, for example, you will
have to deal with the Abuja Environmental Protection Board, (AEPB). For
any location in Nigeria you will need the National Agency for Food and
Drug Administration and Control. (NAFDAC). If your business uses
chemical solvents, you will have AEPB’s compliance to meet. Carefully
investigate the regulations that affect your industry. Being out of
compliance could lead to expensive penalties, and thus jeopardize your
business.

Below are a number of the most common requirements that affect small
businesses, but it is by no means exhaustive.
 Business and Trading licenses
 Health and safety
 Business Insurance
 Intellectual property protection
 Employment Taxes
 Employment law

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Business Licenses

For almost every business that you would want to start you will need a
license to operate legally. For more information on licenses that you
might require contact the closest Business Development Service
Counselor.

You should allow enough time for the authorities to process your
application, because you may not be able to start your business until the
licenses you need are approved.

The rules are different depending on the type of business that you are
setting up. These are examples of the sort of licenses you might need,
and where to apply for them:

 Food businesses (such as restaurants, catering services snack bars

etc.) need a license from the NAFDAC.

 Businesses dealing with children, such as nurseries or daycare

centres, need a special license which is renewed annually, (Boards of
Education).

 Land related businesses you will need a valid land title like a
Certificate of Occupancy.

What business insurance do you need?

All businesses need insurance as soon as they start trading. Some

insurance policies are required by law, and you need them to be in place
as soon as your business is up and running.

Like home insurance, business insurance protects the contents of your

business against fire, theft and other losses. It is, therefore in your
business interest to purchase a number of basic types of insurance. It
makes good business sense to have most of these insurances, but
remember some of the coverages are required by law.

You are likely to need a combination of the following insurance policies:

 Liability Insurance -- Businesses may incur various forms of liability

in conducting their normal activities. One of the most common types
is product liability, which may be incurred when a customer suffers
harm from using your product.

 Property Insurance -- There are many different types of property

insurance and levels of coverage available. It is important to
determine the property you need to insure for your business and the

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 level of insurance you need to replace or rebuild. You must also
understand the terms of the insurance, including any limitations or
waivers of coverage.

 Motor insurance -- It is good business practice that a vehicle owned or

used by your business should be insured for both liability and
replacement purposes, even if this is not demanded by law.

 Other types of insurance may be required, depending on the type of

business you run. For example: Buildings and contents insurance
(including cover for goods in transit); Professional indemnity
insurance, if you provide advice for a fee in the way that a solicitor or
consultant does, you might need this.

An insurance broker will be able to explain which policies your business

needs.

Tax Information –(FIRS)

Business owners are required by law to withhold Personal Income Tax

from the wages paid to their employees. In addition, each business must
file an income tax return on its business activities as well as Value Added
Tax (VAT) with the Federal Inland Revenue Service.

Sales Tax/Value Added Tax (VAT)

Within the Federal Republic of Nigeria, there is a percentage of (sales) -

value added tax, (VAT) which applies to all retail purchase, rental, use or
consumption of tangible personal property and certain services. In other
words, VAT must be collected on most tangible items sold.

Employee & Safety Regulations

(Check with Min. of Labour & Productivity or Min. of Industries for the
latest details.)

When your business employs people, even if they are your relatives, it
has to comply with a number of legal requirements. Employment law
covers many different issues, including:
 Working hours and holidays
 Minimum wage
 Pensions
 Tax and National Insurance
 Maternity and parental leave

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There are also special safety regulations for certain types of businesses
doing one or more of the following things:
 Working in a factory or workshop
 Using heavy machinery
 Using hazardous substances (like chemicals or pesticides)
 Doing a lot of lifting and carrying

Fire safety
If you employ staff, you have certain responsibilities when considering
fire safety in your workplace. These include:
 Doing a risk assessment of possible fire hazards and taking steps to
reduce the risk.
 Making sure fires can be detected quickly, for example by installing a
smoke alarm.
 Providing fire-fighting equipment and making sure it's properly
maintained.

Some businesses also need to apply for fire and/or environmental

certificate. Seek clarification from the nearest Environmental Agency to
your location.

8. Roles of Entrepreneurs in Business/Wealth Creation

1. Promoters: Entrepreneurs are promoters because they can scan

the environment, identify opportunities, marshal
resources and implement the business idea.

2. Partners: Entrepreneurs solicit the participation of other persons

in a business project because of the following:
(a) the degree of success or failure factor involved,
(b) the complexity of a business idea may require
more than one person to run it,
(c) the influence, experience and capacity of others
may be useful, and
(d) friendships or acquaintanceships may be
consolidated through joint business association.

3. Shareholders: Potential entrepreneurs would participate as

shareholders under the following circumstances:
(a) when the enterprise requires too much investment,

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 (b) when they do not want to commit their full time to
the enterprise,
(c) when risks may be reduced by spreading their
investment portfolio, and
(d) when they do not have the capacity to manage
such an enterprise.

4. Directors: Entrepreneurs participate as directors by contributing

positive ideas to advance the enterprise’s objectives.
Such would include:
(a) ensuring compliance with all legal requirements,
(b) safeguarding the interests of employees, especially
women, particularly in the context of decent work,
(c) safeguarding the interests of shareholders in the
context of return on investment,
(d) ensuring that business is conducted honestly and
diligently, and is devoid of fraud and deceit,
(e) ensuring social responsibilities and expectations
are met.

5. Organizers: For an entrepreneur to effectively control or monitor

operations and facilitate communication with workers,
it is advisable to have an organizational structure for
the enterprise. Organizational structures can be formal
or informal, for instance:
(a) various members of a family are assigned various
positions,
(b) various employed assistants are assigned
administrative positions in the running of a small
business.

6. Initiating ideas: Entrepreneurs come up with new ideas. This is an

important area for an entrepreneur as it determines
his/her rate of expansion in business, e.g. new designs
and use of products.

7. Taking risks: Entrepreneurs take risks in business, e.g. starting

businesses which have an equal chance of success or
failure. Resigning from a secure job to start a business
is also risk-taking.

8. Planning: Entrepreneurs are aware of the importance of planning

and of the limitations of planning in the context of the
above roles.

9. Controlling: Entrepreneurs are leaders rather than followers; they

21
 make the final decisions and control all aspects of
business operations.

10. Coordinating: Entrepreneurs must coordinate all the production

factors needed in the business, i.e. capital, labour and
land.

22
 TOPIC 2.

UNDERSTAND THE HISTORY AND GOVERNMENT POLICY MEASURES

FOR PROMOTING ENTREPRENEURSHIP IN NIGERIA

INTRODUCTION:
It is important to state the historical background of entrepreneurship in
the country with emphasis to how it started and developed to its present
level. This topic also highlights the contribution of entrepreneurship vis-
à-vis the promotion of the country’s economic position. A practical
outcome is that students should learn to obtain any required information
from the net

SPECIFIC LEARNING OUTCOME:

1. Trace the evolution of entrepreneurship development;
2. Explain the role of entrepreneur in developing enterprises in
Nigeria;
3. Compare Entrepreneurship in Nigeria with Japan, India, China,
Malaysia, South Korea, etc.
4. Explain Nigeria’s values in relation to Entrepreneurship;
5. Describe the role of Entrepreneurship in the development of
enterprises.
6. Explain Government policy measures at promoting
entrepreneurship in Nigeria

CONTENT:

1. Trace the evolution of entrepreneurship development;

Throughout the theoretical history of entrepreneurship, scholars from

multiple disciplines in the social sciences have grappled with a diverse
set of interpretations and definitions to conceptualize this abstract idea.
Over time, "some writers have identified entrepreneurship with the
function of uncertainty-bearing, others with the coordination of
productive resources, others with the introduction of innovation, and still
others with the provision of capital" (Hoselitz, 1952). Even though certain
themes continually resurface throughout the history of entrepreneurship
theory, presently there is no single definition of entrepreneurship that is
accepted by all economists or that is applicable in every economy.

Although there is only limited consensus about the defining

characteristics of entrepreneurship, the concept is almost as old as the
formal discipline of economics itself. The term "entrepreneur" was first
introduced by the early 18th century French economist Richard
Cantillon. In his writings, he formally defines the entrepreneur as the

23
"agent who buys means of production at certain prices in order to
combine them" into a new product (Schumpeter, 1951). Shortly
thereafter, the French economist J.B. Say added to Cantillon's definition
by including the idea that entrepreneurs had to be leaders. Say claims
that an entrepreneur is one who brings other people together in order to
build a single productive organism (Schumpeter, 1951).

Over the next century, British economists such as Adam Smith, David
Ricardo, and John Stuart Mill briefly touched on the concept of
entrepreneurship, though they referred to it under the broad English
term of "business management." Whereas the writings of Smith and
Ricardo suggest that they likely undervalued the importance of
entrepreneurship, Mill goes out of his way to stress the significance of
entrepreneurship for economic growth. In his writings, Mill claims that
entrepreneurship requires "no ordinary skill," and he laments the fact
that there is no good English equivalent word to encompass the specific
meaning of the French term entrepreneur (Schumpeter, 1951).

The necessity of entrepreneurship for production was first formally

recognized by Alfred Marshall in 1890. In his famous treatise Principles
of Economics, Marshall asserts that there are four factors of production:
land, labor, capital, and organization. Organization is the coordinating
factor, which brings the other factors together, and Marshall believed
that entrepreneurship is the driving element behind organization. By
creatively organizing, entrepreneurs create new commodities or improve
"the plan of producing an old commodity" (Marshall, 1994). In order to do
this, Marshall believed that entrepreneurs must have a thorough
understanding about their industries, and they must be natural leaders.
Additionally, Marshall's entrepreneurs must have the ability to foresee
changes in supply and demand and be willing to act on such risky
forecasts in the absence of complete information (Marshall, 1994).

Like Mill, Marshall suggests that the skills associated with

entrepreneurship are rare and limited in supply. He claims that the
abilities of the entrepreneur are "so great and so numerous that very few
people can exhibit them all in a very high degree" (1994). Marshall,
however, implies that people can be taught to acquire the abilities that
are necessary to be an entrepreneur. Unfortunately, the opportunities for
entrepreneurs are often limited by the economic environment which
surrounds them. Additionally, although entrepreneurs share some
common abilities, all entrepreneurs are different, and their successes
depend on the economic situations in which they attempt their
endeavours (Marshall, 1994).

Since the time of Marshall, the concept of entrepreneurship has

continued to undergo theoretical evolution. For example, whereas

24
Marshall believed entrepreneurship was simply the driving force behind
organization, many economists today, but certainly not all, believe that
entrepreneurship is by itself the fourth factor of production that
coordinates the other three (Arnold, 1996). Unfortunately, although
many economists agree that entrepreneurship is necessary for economic
growth, they continue to debate over the actual role that entrepreneurs
play in generating economic growth. One school of thought on
entrepreneurship suggests that the role of the entrepreneur is that of a
risk-bearer in the face of uncertainty and imperfect information. Knight
claims that an entrepreneur will be willing to bear the risk of a new
venture if he believes that there is a significant chance for profit
(Swoboda, 1983). Although many current theories on entrepreneurship
agree that there is an inherent component of risk, the risk-bearer theory
alone cannot explain why some individuals become entrepreneurs while
others do not. For example, following from Knight, Mises claims any
person who bears the risk of losses or any type of uncertainty could be
called an entrepreneur under this narrow-definition of the entrepreneur
as the risk-bearer (Swoboda, 1983). Thus, in order to build a
development model of entrepreneurship it is necessary to look at some of
the other characteristics that help explain why some people are
entrepreneurs; risk may be a factor, but it is not the only one.

Another modern school of thought claims that the role of the

entrepreneur is that of an innovator; however, the definition of
innovation is still widely debatable. Kirzner suggests that the process of
innovation is actually that of spontaneous "undeliberate learning"
(Kirzner, 1985, 10). Thus, the necessary characteristic of the
entrepreneur is alertness, and no intrinsic skills-other than that of
recognizing opportunities-are necessary. Other economists in the
innovation school side more with Mill and Marshall than with Kirzner;
they claim that entrepreneurs have special skills that enable them to
participate in the process of innovation. Along this line, Leibenstein
claims that the dominant, necessary characteristic of entrepreneurs is
that they are gap-fillers: they have the ability to perceive where the
market fails and to develop new goods or processes that the market
demands but which are not currently being supplied. Thus, Leibenstein
posits that entrepreneurs have the special ability to connect different
markets and make up for market failures and deficiencies. Additionally,
drawing from the early theories of Say and Cantillon, Leibenstein
suggests that entrepreneurs have the ability to combine various inputs
into new innovations in order to satisfy unfulfilled market demand
(Leibenstein, 1995).

Although many economists accept the idea that entrepreneurs are

innovators, it can be difficult to apply this theory of entrepreneurship to
less developed countries (LDCs). Often in LDCs, entrepreneurs are not

25
truly innovators in the traditional sense of the word. For example,
entrepreneurs in LDCs rarely produce brand new products; rather, they
imitate the products and production processes that have been invented
elsewhere in the world (typically in developed countries). This process,
which occurs in developed countries as well, is called "creative imitation"
(Drucker, 1985) The term appears initially paradoxical; however, it is
quite descriptive of the process of innovation that actually occurs in
LDCs. Creative imitation takes place when the imitators better
understand how an innovation can be applied, used, or sold in their
particular market niche (namely their own countries) than do the people
who actually created or discovered the original innovation. Thus, the
innovation process in LDCs is often that of imitating and adapting,
instead of the traditional notion of new product or process discovery and
development.

As the above discussion demonstrates, throughout the evolution of

entrepreneurship theory, different scholars have posited different
characteristics that they believe are common among most entrepreneurs.
By combining the above disparate theories, a generalized set of
entrepreneurship qualities can be developed. In general, entrepreneurs
are risk-bearers, coordinators and organizers, gap-fillers, leaders, and
innovators or creative imitators. Although this list of characteristics is by
no means fully comprehensive, it can help explain why some people
become entrepreneurs while others do not. Thus, by encouraging these
qualities and abilities, governments can theoretically alter their country's
supply of domestic entrepreneurship.

2. Explain the role of entrepreneur in developing enterprises in

Nigeria;

In Nigeria like in all countries, entrepreneurs drive business and

socio-economic development. They play the key roles that sustain
national socio-economic development. These important roles are
described below.

a) The entrepreneur is the prime mover in the business

enterprise. Without the entrepreneur there would be no business in
the first place. He/she is the one who identifies gaps in the market
and then turns these gaps into business opportunities. One of the
functions of the entrepreneur is, therefore, to initiate the business.

b) It is the entrepreneur who finances the business. After

identifying a business opportunity, the entrepreneur raises and
mobilizes the necessary resources to exploit the opportunity. By so
doing the entrepreneur becomes the financier of the enterprise. The

26
 entrepreneur does not of course have to finance the business from
personal savings alone. The necessary finances and other resources
could be borrowed. It is therefore a function of the entrepreneur to
finance the business.

c) Another function of the entrepreneur is to manage the

business. This is also a function that he/she can easily delegate to
other people. But, even where other people are employed to manage
the business, the ultimate responsibility for management remains
with the entrepreneur. Management functions involve a wide range
of activities such as organizing, coordinating, leading, recruiting,
rewarding, evaluating, etc. The entrepreneur does not only manage
production, but also marketing, personnel and all other aspects of
the business.

d) The entrepreneur also has the function of bearing the

uncertainties of the risks of the business. This arises because it is
the entrepreneur who provides the finances of the business. This is
so even where other people may have lent the necessary finances, as
is the case when one borrows from financial institutions.

e) Through the entrepreneurial function, many jobs are created

in the economy. In addition, wealth is made available to the
individual, the community and society in general through the
actions of entrepreneurs. Entrepreneurs also encourage
competition, which is critical in sustaining free enterprise, and
support a market economy system which has proved to be ideal for
economic growth, social progress and the spread of prosperity
among a country’s population. Entrepreneurship is an effective
mechanism for ensuring innovation and creativity as well as
achieving development at the grassroots level.

3. Compare Entrepreneurship in Nigeria with Japan, India, China,

Malaysia, South Korea, etc.

Entrepreneurship in Nigeria

Africa is the poorest, less-developed continent in the world. In most

countries in Africa, the governments have typically played a significant
role in determining the course of development. Many state-owned
enterprises in Africa were created when it was believed that the fastest
route to development occurred when the state took on the role of the
entrepreneur. Unfortunately, in many countries, the performance of
these state-owned firms, or parastatals, has been substandard. Part of
the problem with the state-owned enterprises is that they are run by

27
bureaucrats and are plagued with red-tapism. Thus, these firms are
typically run according to state procedures, instead of according to cost-
cutting and profit-maximizing concerns. The typical result is rampant
inefficiency (Elkan, 1988). Although Nigeria was at one time
characterized by such inefficiencies, it has recently pursued
entrepreneurship encouragement policies, and the initial indicators
suggest that the policies have been successful.

In Nigeria the state-owned enterprises traditionally clogged business

opportunities and state restrictions prevented entrepreneurs from
entering the market. However, in the mid-1980s, Nigeria abolished its
marketing board, which prevented entry into certain industries, and
opened up its markets to competition from domestic entrepreneurs.
Additionally, lower taxes and increased price ceilings have increased the
incentives to entrepreneurs. Although Nigeria is still plagued by many
development problems, "preliminary evidence suggests a favorable
response by the private sector to the new entrepreneurial opportunities
thus created" (Elkan, 1988).

Nigeria has thousands of silent businessmen in the informal sectors of

the economy, pursuing business interests ranging from the importation
of refined crude oil to selling repackaged table water. It is estimated that
the informal sector accounts for over 60% of Nigeria’s GDP and
represents a source of livelihood for about 70% of Nigerians. These
business operators in the small sectors are the engine that drives any
economic revolution, and Nigeria has no scarcity of them. However, some
of these Nigerians have become icons and models for enterprise and
business pursuit today through the sheer size and influence of their
business dealings. They are from the banking, energy, technology,
telecommunications, manufacturing and other industrial sectors and
have distinguished themselves by contextualizing the resources they
manage and by contributing to growth of entrepreneurial spirit in
Nigeria.

Nigeria’s business opportunities have increased tremendously as the

political system becomes increasingly stable. The era of private sector-
driven investment has just arrived. The Nigerian Presidency has set an
ambitious goal:- to develop the country’s economy to become one of the
world's top 20 economies by 2020. Nigeria will need to increasingly
globalize education in two key areas: Information and communications
technology, and entrepreneurship. The Presidency has mandated all
students in Higher Education Institutions (HEIs), regardless of their
discipline, to study entrepreneurship before they qualify for their degrees
and diplomas. The aim of this is to create a critical mass of graduates

28
better prepared for employment as well as creators of knowledge-based
enterprises.

The Challenges Faced By Entrepreneurs in Nigeria

Corruption is something that retards economic growth, and it exists in

virtually all economies, not necessarily developing economies or indeed
Africa--although based on the structures in the more advanced
countries, they are able to control or to curb these kinds of practices. In
Nigeria, the EFCC, which is the Economic and Financial Crime
Commission set up by the government, has been able to deal largely with
corruption. They have made quite a substantial amount of investigation
and recoveries. There has been talk of something like $5 billion recovered
including some of the money stacked outside of the country by corrupt
leaders. The current operating climate for entrepreneurs is gradually
becoming competitive and less rent-seeking.

However, that is not the real constraint that retards entrepreneurship in

Nigeria. Based on the research carried out by Lagos Business School
(LBS) recently, the following factors tend to weigh down entrepreneurs:
The first is "Markets." The majority of our people don't have access to
markets, and in order for them to have access to markets, they have to
understand the requirements of the market. This is one area where we
are lacking--for instance, if you want to have access to the U.S. market,
you must have the knowledge of the market regulations in the USA. Such
understanding will assist the entrepreneur to produce in order to be able
to meet the needs of the market. Adequate and timely market
information must be provided. Also, products must be competitive and
meet required standards.

Another major factor is "Infrastructure." This is basically [true] in all

developing countries, but more so in Nigeria. Poor infrastructure has
been a major cause of Nigerian products not being competitive in the
International market. Public power supply has been the major constraint
to enterprise development. According to a study carried out by the World
Bank in the last 10 years or so, it was pointed out that if government is
able to remove power as a bottleneck, Nigeria will gain at least 30%
competitiveness in production.

Four years ago, we had a similar problem in telecoms; then, we had not
more than 400,000 phone lines. But today, four years after telecoms
deregulation the story is different. This reform agenda of the government
that liberalized the telecoms sector and provided an enabling operating
climate for private sector participation in that sector has yielded positive
results. About 50 million lines, the majority of which are either mobiles
or fixed wireless are now operational in the country. So we are able to

29
cross the bridge of infrastructural deficiency in the telecoms sector
through getting our policy and regulations right as well as using
transparent means to license private sector operators.

Another important constraint is "Finance." Access to capital is a major

constraint in Nigeria. The government has tried to do something about
this through having one form of intervention or the other in the past.
However, about five years ago, the Banker's Committee decided to set
aside 10% of their profits as equity investments in small businesses.
Everybody hailed that decision, and that was good. Unfortunately, the
rate at which the money was being dispersed to enterprises has been
very poor. So why was this happening?

First of all, you have to understand the mindset of the small business
owners in Nigeria. They own their businesses, and they like to control it
themselves. Unlike what obtains in USA, Canada and Europe where most
people wanting to start a business will look for a partner, somebody with
equity. The philosophy is "Let's share the risk together. Let's leverage on
the knowledge of one another," and things like that. But back in Nigeria,
the prevailing philosophy is "I want to start it myself. I want to do it
myself, at least up until the particular level that I know I have full
control. Then, maybe I can sell part of it, but for now, let me do all the
sweating, and let me do all the things that come with that sweating."

The second side is that up until five, maybe not more than eight, years
ago, the financial services sector had been used to lending through debt,
not equity, so the mindset, again, is different. Most lending has to be
done with collateral, so if you default, they sell off your collateral. In the
new participatory case, there is nothing to sell off, which means they
have to do their homework a lot more to know the right type of
businesses to invest in--whether they are growing businesses or not.
They need to know all that, and that is where they can get their reward.
So that has also become a challenge for them. The challenge for the
banks is that they need to learn the ropes of venture capitalists.

On both sides, there are real challenges, and these have slowed down the
investments in equity. There is need for value orientation and sound
financial education.

Another factor is inadequate documentation of processes and outcomes.

The records are poorly kept; and it is difficult for small businesses to
have regular financial statements and things like that. This common
business practice in developed economies must be shown to
entrepreneurs and why it is important for them to have their own
financial records--even to know how their businesses are growing.
Western small businesses are very careful about documenting processes

30
and outcomes. I think the outcomes documentation is likely due to Small
Business Administration (SBA) requirements, which we don't have. But
beyond the SBA requirements, the fact that entrepreneurs are able to
document their processes helps them to consistently control the
outcome. That is one learning point that must be imbibed by all
entrepreneurs. In addition we need to start documenting some of the
processes which have been successful as well as documenting various
operational challenges and the solutions to these, using daily reflection
journals. This leads to effective use of feedback mechanisms in future
operational plans as well as in developing their own strategic plans.

Technopreneurship in South and South East Asia

Entrepreneurship in parts of South and South East Asia has recently

undergone rapid revitalization. The term "technopreneur" arose from
within Singaporean culture to describe an individual whose
entrepreneurial endeavours focus on a technology-centered enterprise.
The government of Singapore has embraced technopreneurship and has
launched several initiatives to promote technopreneurship as a means of
economic development. In the past three years, Singapore has
restructured the focus of many of its economic policies to fully support
the growth and development of domestic technopreneurial firms.

Singapore is a small island city-state and has few natural resources that
it can exploit in order to promote economic development. Thus,
Singapore has had to largely rely on its people and human capital for the
sustainment of development. Initially, the government improved the
country's human capital by dedicating a large amount of the annual
budget to education expenditure. However, now that the country can
boast of high literacy rates, traditional human capital development is no
longer sufficient to sustain economic growth.

Recognizing the need for a new strategy for economic growth, Singapore's
government turned towards the technology sector. With the creation of
the Technopreneurship 21 Initiative and Ministerial Committee,
Singapore began promoting technopreneurship encouragement policies.
For example, the government now sponsors university courses on
technopreneurship and helps connect venture capital companies with
budding technopreneurs. This greater openness has encouraged many
new start-ups to form, and the country is well on its way to fully
integrating itself into the New Economy. Singapore's success with
technopreneurship policies has influenced other Asian countries to begin
such initiatives. For example, Malaysia recently launched its Multimedia
Super Corridor to encourage domestic technology development, and
Hong Kong recently completed the construction of its CyberPort, a

31
technopreneurship-friendly business district. Finally, technopreneurship
encouragement has also taken place in certain cities in India.

As a whole, India is still one of the most underdeveloped countries in the

world. Despite the grim situation that faces much of the country, several
technology-focused cities have recently had impressive success with
technology driven development. In 1991, the Indian government
introduced numerous market reforms to overhaul the Indian economy.
The information technology industry is probably that which has benefited
most from the reforms. For the educated urban class, information
technology businesses have provided a new source of income. To utilize
the educated youth, who have been trained in engineering and computer
programming, international IT companies began locating in India,
particularly in Bangalore. The result is that Bangalore has become a
powerhouse for software production. Although Indian technopreneurs
were not originally at the center of Bangalore's technology development,
they are now beginning to pop up throughout southern India, largely due
to the government's help in creating "the right climate to encourage this
sunrise industry" (Soota, 1998). The government created policies to boost
technopreneurial education and to encourage the creation of domestic
software parks. Additionally, domestic entrepreneurship is encouraged in
Bangalore with tax incentives and a relatively advanced communications
infrastructure (Soota, 1998).

Bangalore's localized success is gaining great praise for its rapid

development. Although Bangalore was the first major technology center
in India, Hyderabad is now following its example. Although smaller in
scale, the success of Hyderabad suggests that the Bangalore model of
technology-led development may be applied in other parts of the country.
Since much of India is still far behind Bangalore and Hyderabad in terms
of human capital development, it is unreasonable to suggest that all of
India should adopt policies to promote technopreneurship. Nonetheless,
the rest of the country could likely benefit from the implementation of
policies that encourage entrepreneurs to fill the market's deficiencies,
whatever they may be in the local markets and specific regions of India.

4. Explain Nigeria’s values in relation to Entrepreneurship;

The historical and contemporary records reveal a long and robust history
of family- owned businesses in Nigeria. There is evidence that the
colonial legal and administrative policies purposefully discouraged
Nigerians from owning a business and achieving economic independence.

32
Despite de-facto and legal discrimination before independence, Nigerians
throughout the region have a track record in a full range of commercial
enterprises. They have distinguished themselves as industrialists, skilled
artisans, real estate developers, professionals, bankers, merchants, and
as players in every other conceivable area of commercial enterprise.
Moreover, there is a strong appetite, as well as cultural and political
mandate among Nigerians for enterprise development. It is avidly
embraced by and unifies - historically and today -- all segments of the
political spectrum. It is supported by churches, nationalist groups, and
political parties. Enterprise development is considered the answer to not
only personal wealth and achievement, but also the larger historical
political and social agenda of National economic and community
development.

Today, Nigerians are uniquely positioned for the New Millennium

business environment. A larger percentage of today's national
entrepreneurs hold advanced degrees, are computer savvy, and are active
in international and cross cultural networks; important assets in the
knowledge-based, networked economy. Businesses, financial institutions
(public and private) and business assistance providers need the insights
and tools to help retain, grow and expand Nigerian-owned businesses. At
stake are local and regional economic objectives:- The provision of basic
goods and services, job creation, neighborhood improvement, wealth
creation, among others. This requires addressing some of the traditional
barriers to enterprise development – infrastructural weakness, access to
capital and market opportunities along with new millennium challenges -
-rapid demographic, economic, and spatial changes.

Future government policies aimed at growing indigenous business must

address three specific questions:
• What role do Nigerian-owned businesses currently play in the ECOWAS
economy?
• How are Nigerian firms adapting to the rapidly changing demographic,
economic, and political milieu in the world market?
• What are the relevant strategies for positioning Nigerian enterprises in
the New Millennium?

The government must encourage business associations or higher

education institutions to address these challenges by providing the
research findings and ideas for these new directions.

33
5. Describe the role of Entrepreneurship in the development of
enterprises;

The supply of entrepreneurship is affected by many factors, not all of

which can easily be controlled or changed. Nonetheless, policymakers
can implement certain policies in order to encourage entrepreneurship.
Based on the characteristics of entrepreneurs and the factors that affect
the supply of entrepreneurship, the following policy prescriptions may
serve as a general guide for implementing policies that foster economic
development through increased levels of entrepreneurship (the
recommendations are in no particular order):

1. Increase the market incentives for entrepreneurs: As stated earlier,

one of the primary determinants of the supply of entrepreneurship
is the willingness of an individual to become an entrepreneur.
Willingness is largely determined by the anticipated economic
benefits that will accrue to an entrepreneur if his enterprise is
profitable. In many countries market regulations limit the
incentives that could encourage would-be entrepreneurs to start
their own enterprises. For example, price ceilings that are set
below market equilibrium lower the amount of revenue that an
entrepreneur could earn in a certain industry. If the anticipated
economics benefits are lower than the opportunity cost, then the
would-be entrepreneur will not start his own enterprise. Thus, in
many countries policies should be implemented to increase and
improve the incentives for entrepreneurs. Additional policy
possibilities include tax incentives for entrepreneurs.

2. Improve the availability of credit and capital: The second major

determinant of the supply of entrepreneurship is opportunity. In
order for an individual to start his own enterprise, it is necessary
for him to have the credit or capital to finance the initial start-up
costs. One of the primary problems facing would-be entrepreneurs
in LDCs is a lack of such capital. Without initial capital, many
entrepreneurs do not have the funds to start enterprises of their
own. Governments could attempt to correct this problem by
encouraging the development of venture capital companies and by
implementing micro-credit programmes. The specific type of capital
programmes that are implemented would need to be crafted
specifically for each country, depending on where the country is
along its course of development. In the poorest of LDCs, the focus
would most likely be on micro-credit programmes, like the
Grameen Bank in Bangladesh. However, in countries with higher
levels of human capital, entrepreneurial firms would derive greater
use from venture capital.

34
3. Develop entrepreneurship encouragement programmes: By passing
legislation that is friendly towards entrepreneurs, countries can
make it more culturally acceptable and less risky to be an
entrepreneur. Additionally, entrepreneurship encouragement
programmes, like the Technopreneurship 21 Initiative in
Singapore5, can assist entrepreneurs in finding capital, setting up
a business plan, and complying with the various business and tax
regulations.

4. Initiate entrepreneurship educational programmes: New education

initiatives should be created to teach entrepreneurship. By
equipping more people with the skills to become entrepreneurs, a
country can effectively increase its supply of competent
entrepreneurs. Economists disagree as to whether entrepreneurial
skills can be taught or whether they are intrinsic. Nonetheless,
there have been successful results from such educational
programmes. One example of such a policy is the Malaysian
Entrepreneurship Development Centers in the rural, indigenous
areas of Malaysia. These centers teach the indigenous people
entrepreneurial skills and assist aspiring entrepreneurs with the
development of their business plans.

5. Reform market regulations to facilitate entry into the market:

Countries can increase their supply of entrepreneurship by
improving the ease of entry into the formal sector. Many LDCs use
licenses and permits to regulate who can participate in the formal
sector. Although these policies may earn government revenue or
protect state-owned enterprises, they effectively make the markets
inefficient (by limiting competition) and prevent would-be
entrepreneurs from starting their enterprises. By reforming their
market-entry laws, some countries will be able to increase their
supplies of entrepreneurs. As an example, Nigeria's abolition of its
marketing boards provided new opening for a large number of
small entrepreneurs to enter the market with creative imitations.6

6. Increase entrepreneurial opportunities available to women and

young persons: As Saeed suggests, many women and young
persons are excluded from the formal sector in LDCs because of
cultural values or legal restrictions. By preventing these groups
from participating in the formal market, these countries are
essentially limiting the size of their pool of would-be entrepreneurs.
By eliminating discriminatory employment and licensing policies,
countries could create an influx of possible entrepreneurs.
Unfortunately, such polices may not be culturally popular in some
countries (Saeed, 1998).

35
All of the above recommendations are general policy suggestions that
governments can pursue. The specific policies that a country
implements, however, must be made appropriate for the specific
circumstances that the country faces. For example, in a country where
the majority of entrepreneurship takes the form of small family-owned
enterprises, there is initially little need for venture capitalists; instead it
would be more appropriate for this country to implement micro-credit
programs to assist potential entrepreneurs. Thus, the policies that an
LDC implements to increase its supply of entrepreneurship must be
crafted individually for the country's specific case and stage of
development. Additionally, like most development policies, many of the
above recommendations require government expenditure. However, since
entrepreneurship is necessary for economic development, expenditure on
encouragement policies is as justified as much as expenditure on any
other development policy.

6. Explain Government Policy Measures at Promoting Industry and

Entrepreneurship in Nigeria.

In order to promote a dynamic, efficient and balanced manufacturing

sector, a package of incentives should be designed to promote
investment, employment, product mix and various other aspect of
industry.

In general, the package of incentives can be grouped into five; these are:
i. Fiscal measures of taxation and interest rates.
ii. Effective protection with import tariff
iii. Export promotion of Nigerian products.
iv. Foreign currency facility for international trade.
v. Development Banking.

TAXATION
Fiscal measure has been fashioned out to provide for deduction and
allowances in the determination of taxes payable by manufacturing
enterprises. The fiscal measures targeted at aspect of industrial activities
are as follows:

a) Pioneer Status
By the provision of income tax relief Act 1958 (Amended by Decree No.
22 of 1971) Public companies are granted specific tax holiday on
corporate income. This is to encourage such industries that government
consider beneficial to Nigeria. During the period of exemption, the
companies are expected to achieve a reasonable level of profitability. The
relevant company or product is declared a pioneer industry or pioneer

36
product. This Act is applicable to both public and private limited liability
companies.

The relief covers non renewable period of five years for pioneer industry
and seven years for such industries located in economically
disadvantaged areas.

Pioneer status relief as well as additional tax concessions is available to

industrialists who take initiative in the following areas:
i. Local raw material development
ii. Local value added activity
iii. Labour intensive processes
iv. Export oriented activities
v. In-plant training
vi. Investment in economically disadvantaged areas.

b) Tax Relief for Research and Development

Industrial establishments are expected to engage in research and
development (R & D) for the improvement of their processes and
products. Up to 120% of expenses on R&D are tax deductible provided
that such R&D activities are carried out in Nigeria and are connected
with the business from which income or profit is derived for the purposes
of R&D on local raw material 14% of expenses are allowed. Where the
research is long term, it will be regarded as a capital expenditure and it
will be written off against profit in administering this tax relief the
Federal ministry of finance consults the federal ministry of science and
Technology to determine the genuineness of such R&D activities.

c) Companies Income Tax Act

This Act has been amended in order to encourage potential and existing
investors and entrepreneurs.

d) Tax Free Dividends

An individual or a company deriving dividend from any company as from
1987 shall enjoy tax free dividends for a period of three years if:
i. The company paying the dividend is incorporated in Nigeria
ii. The equity participation is imported into the country.
iii. The recipient’s equity in the company constitutes at least,
10% of the share capital of the company.
In addition to the above, if the company paying the dividends is engaged
in Agricultural production in Nigeria or the production of petrochemicals
or liquefied natural gas, the tax free period shall be five years.

37
 e) Tax Relief for Investments for Economically Disadvantaged Local
Governmental Areas
Enterprises who invest in economically disadvantaged local government
areas are entitled to special income and other concessions.
These include:
i. Seven years income tax concession under the pioneer status
ii. Special concession by relevant state government.
iii. Additional 5% and above the initial capital depreciation allowance
under the company income tax.

For the purpose of administering these incentives, the country has been
grouped into the following zones;
1. Industrially and economically developed local government
areas
2. Less industrially and economically developed local
government areas
3. Least industrially and economically developed local
government areas.

f) Double taxation (Income tax 1979)

By Decree No 41985 (miscellaneous taxation provision) the income tax
Act of 1979 was amended. The effect of the amendment was to
eliminate double taxation on investment income.

g) Group of company taxation.

Companies can now pay interim company dividends without any
double taxation since the amendment on franked investment income
came into effect on 1st January, 1985.

EFFECTIVE PROTECTION
Tariff level provides a simple and straight forward measure of protection
against imports but may not provide the total effect anticipated.
Government therefore put in place other measures to ensure that
locally made goods are competitive in both domestic and export market.

a) Pursuant of the trade liberalization policies of the government, a

new Customs, Excise Tariff etc decree was published. It makes
provisions for the imposition of ad valorem custom and excise
duties payable on goods imported and manufactures in Nigeria
basing it on a new harmonized system of custom tariff. The
essence of this review is to give effective protection to local
industries and to promote further investment.

b) Dumped and subsidized goods, the custom Duties dumped and

subsidized Goods Act of 1958 permit when necessary the
imposition of a special duty on any goods which are dumped in

38
 Nigeria or subsidized by any government or authorized outside
Nigeria.

EXPORT PROMOTION
A variety of measures ranging from export insurance to outright grant to
export oriented industries are applicable to manufacturers producing for
export. These have been articulated in Decree No. 18 1986.
i. Import Duty Draw Back
Importers can claim repayment of import duty paid for
materials used in producing export goods. Repayment will be
made in full if materials are imported for use in the
production of goods which are exported. The objective of the
duty draw back is to encourage the production of various
export goods as a way of diversifying the economy away from
it.
ii. Export License waiver
No export license is required for the export of manufactured
or processed products. Also, export products are exempted
from excise tax
iii. Export Credit Guarantee and Insurance Scheme
In order to make Nigerian products compete effectively in the
international market as well as to insure genuine exporter
against some political and other risk including default in
payment, the government has approved the establishment of
an export credit guarantee and insurance scheme.
iv. Export Development Fund.
This should be used to provide financial assistance to private
exporting companies to cover part of their initial expenses in
respect of export promotion activities.
v. Export Expansion Fund;
This shall be used to provide cash inducement for exporters
who have exported a minimum of N50, 000 worth of semi
manufactured or manufactured products.
vi. Export Adjustment Scheme Fund
This has been established to serve as a supplementary
export subsidy.
vii. Rediscounting Of Short Term Bill For Export
This facility will enable all exporters to rediscount their short
term bills under the scheme in the central bank of Nigeria.
viii. Capital Allowance
Additional annual capital allowance of 5% on plant and
machinery is granted to manufacturing exporters provided
that the product has at least 40% local raw materials
content or 35% value added.

39
 ix. Tax Relief on Interest Income
Company income tax Act has also been amended to grant tax
relief on interest accruing from any loans granted to and
investment in export oriented industries.

FOREIGN CURRENCY FACILITY

A new trade and exchange rate regime has been adopted by government
to ensure efficient and competitive local production. The facility also
provides for easier measurement of investible funds for goods and
services in and out of Nigeria.
i. Foreign Exchange Market
The foreign exchange market came into operation after abrogating
of import levy and export license. The market also provides
manufacturers easy access to foreign exchange.
ii. Repatriation of Imported Capital
An approved status permit for imported capital investment is
conferred on companies with non-resident investment cases where
the original investment was imported in the form of equity either
by way of cash or plant and machinery. The purchase of this
status is to facilitate timely repatriation of remittance or other
capital claims.
iii. Payment of Technology Fees
In order to ensure effective assimilation and diffusion of foreign
technology within a specific time frame at a fair and equitable
contractual and payment terms, fees for technical services are
based on net sales (rather than profit and tax).
iv. Foreign Currency Domiciliary Account
Banking regulation in Nigeria makes it possible for exporters of
non oil product to retain the proceeds of export in bank account
denominated in foreign currency. Such accounts are operated at
the owner’s discretion.

DEVELOPMENT BANKING
Industrial development banks have been set up at both federal and state
levels to offer specialized services to industry. Paramount among these
services is the provision of soft loans and advances to large, medium and
small scale, and cottage type industries on concessionary terms. These
concessions are reviewed regularly in line with policy objective of
government. These banks include Bank of Industry (BOI) and Nigeria
Agricultural Cooperative and Rural Development Bank (NACRDB).

40
 TOPIC 3:

UNDERSTAND THE TYPES, CHARACTERISTICS AND

RATIONALE OF ENTREPRENEURSHIP

INTRODUCTION:
This section highlights a comprehensive typology and significance of
entrepreneurship. The real values, forms and attributes of
entrepreneurship are also discussed. Students should be able to analyze
life situations in which people may find themselves and enumerate the
benefits to be derived from the above situation.

SPECIFIC LEARNING OBJECTIVE:

1. Explain types of Entrepreneurs and their characteristics;
2. Explain the classes of entrepreneurship
3. Analyze life situations people may find themselves in;
4. Enumerate the benefits to be derived from the above situation;
5. Compare and contrast Technological and Social
Entrepreneurship;
6. Identify the different types of Entrepreneurs: self employed,
Opportunistic, Inventors, Pattern multipliers, etc.
7. Identify the role of Entrepreneurship in business, society and
in self employment.

CONTENT:
1. "Entrepreneurship involves seeking and pursuing opportunity.
Successful entrepreneurship captures the value from
opportunity" - Colin Turner

Six Core Entrepreneurship Characteristics: essential to fulfill

both an organization's potential and the individual's potential.
Employee
1. Make decisive personal choice
2. Design, develop, drive and determine
3. Willingly risk moderate failure
4. Establish interdependence among members
5. Define project expectations
6. Recognize concept value
Organizational
1. Have agreed support strategy
2. Provide initiative sponsorship
3. Establish trial and error metrics
4. Encourage diversified teams

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 5. Allocate venture resources
6. Provide performance and risk rewards

No one gets ahead by copying the status quo or imitating competitors.

The concept of being unique or different is far more important today
than it was ten years ago. In the emerging era of over-communication
and hyper-competition, people are overwhelmed by choice - choice of
information, ideas, products, and services. In this sea of choice, most
customers have trouble making choices about buying decisions.
Choosing among multiple options is always based on differences,
implicit or explicit.
Creativity is your key to the future. All progress comes about as a result
of finding better, faster, cheaper, easier or different ways to do things
and this requires the continual honing of your creative thinking skills.
Lateral thinking is concerned with generation of new ideas. It is also
concerned with "breaking out of the concept of prisons of old ideas."

List entrepreneurial characteristics: the list might include the following

characteristics.

– Self confident – Persistent and determined

– Independent – Willing to listen

– Optimistic – Hard working

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– Dynamic leader – Energetic and forceful

– Originality of thought – Perceptive

– Builds on strengths – Goal-oriented

– Innovative and creative – Risk-taker

– Resourceful – Accepts challenges

– Committed – Communicates effectively

– Takes initiative – Decision-maker

Sets own performance

– Versatile and knowledgeable –
standards

– Gets along with others – Sees broad picture

– Flexible – Mentally well-organized

– Responsive to feedback – Understands self

– Achievement-oriented – Manages an organization

– Builds for the future – Reliable, has integrity

– Highly motivated – Copes with uncertainty

– Profit-oriented

2. 10 Secrets of Successful Entrepreneurs

Running a one-person business is a creative, flexible and challenging

way to become your own boss and chart your own future. It is about
creating a life, as it is about making a living. It takes courage,
determination and foresight to decide to become an entrepreneur. From
the relatively safe cocoon of the corporate world, where paychecks arrive
regularly, you will be venturing into the uncharted territories of
business.

Is there a way to determine whether you can be a successful

entrepreneur, or you are better off to work for somebody else? Alas, there

43
is no formula for success. However, most successful entrepreneurs share
these ten characteristics. Check if you possess any one of them:

1. Think success. To attain the kind of success that you want, you need
to dream big. Every success story starts with big dreams. You need to
have big dreams for yourself - which you want to be somebody rich,
famous or fulfilled. You need to have a clear vision of what you want to
achieve. But it doesn't stop in dreaming alone. You should actively
visualize success in your mind that you can almost feel it, touch it or it is
within your reach. Play this image back at every opportunity. What does
it feel to triple your current income? How will your life change? What will
your business look like if you achieved the million-dollar mark?

Successful entrepreneurs possess an attitude of openness and faith that

you can have what you want if you can simply envision it as the first step
on the path of action to acquiring it. Management gurus have taught us
the power of visualization - seeing yourself in your mind as having
accomplished your dreams. If you want to be a successful writer,
envision yourself signing books for a throng of people who have lined up
to have your autograph. If you want to be rich, picture yourself in
luxurious surroundings holding a fat bank account. And the process of
envisioning success for you should be a constant activity! You need to
think that you are successful (or will be one) every single waking hour. A
personal development coach shared me her secret to help her
continuously visualize her goals for the moment: when climbing stairs,
recite your goal with every step you take. So if you want more money, say
"I will have money" in every step of the stairs. This technique will
reinforce your goal and keep it fresh in your consciousness.

2. Be passionate with what you do. You start a business to change any
or all part of your life. To attain this change, you need to develop or
uncover an intense, personal passion to change the way things are and
to live life to the fullest. Success comes easily if you love what you do.
Why? Because we are more relentless in our pursuit of goals about
things that we love. If you hate your job right now, do you think you will
ever be successful at it? Not in a million years! You may plod along, even
become competent at the tasks, but you will never be a great success at
it. You will achieve peak performance and do what you have to do to
succeed only if you are doing something that interests you or something
that you care about. Entrepreneurs who succeed do not mind the fact
that they are putting in 15 or 18 hours a day to their business because
they absolutely love what they do. Success in business is all about
patience and hard work, which can only be attained if you are passionate
and crazy with your tasks and activities.

44
3. Focus on your strengths. Let's face it; you cannot be everything to
everybody. Each of us has our own strengths and weaknesses. To be
effective, you need to identify your strengths and concentrate on it. You
will become more successful if you are able to channel your efforts to
areas that you do best. In business, for example, if you know you have
good marketing instincts, then harness this strength and make full use
of it. Seek help or assistance in areas that you may be poor at, such as
accounting or bookkeeping. To transform your weakness to strength,
consider taking hands-on learning or formal training.

4. Never consider the possibility of failure. Ayn Rand, in her novel The
Fountainhead, wrote, "It is not in the nature of man - nor of any living
entity, to start out by giving up." As an entrepreneur, you need to fully
believe in your goals, and that you can do it. Think that what you are
doing will contribute to the betterment of your environment and your
personal self. You should have a strong faith in your idea, your
capabilities and yourself. You must believe beyond a shadow of a doubt
that you have the ability to recognize and fulfill them. The more you can
develop faith in your ability to achieve your goals, the more rapidly you
can attain it. However, your confidence should be balanced with
calculated risks that you need to take to achieve greater rewards.
Successful entrepreneurs are those who analyze and minimize risk in the
pursuit of profit. As they always say, "no guts, no glory."

5. Plan accordingly. You have a vision, and you have enough faith in
yourself to believe that you can achieve your vision. But do you know
how to get to your vision? To achieve your vision, you need to have
concrete goals that will provide the stepping-stone towards your ultimate
vision. Put your goals in writing; not doing so just makes them as
intangible fantasies. You need to plan each day in such a way that your
every action contributes to the attainment of your vision. Do you foresee
yourself as the next Martha Stewart of hand-made home furnishings?
Perhaps today, you need to see an artist to help you conceptualize the
new line of hand-made linens that you hope to launch. Intense goal
orientation is the characteristic of every successful entrepreneur. They
have a vision, and they know how to get there. Your ability to set goals
and make plans for your accomplishment is the skill required to succeed.
Plan, plan and plan - because without which failure is guaranteed.

6. Work hard! Every successful entrepreneur works hard, hard and hard.
No one achieves success just by sitting and staring at the wall every
single day. Brian Tracy puts it out this way, "You work eight hours per
day for survival; everything over eight hours per day is for success." Ask
any successful businessperson and they will tell you immediately that
they had to work more than 60 hours per week at the start of their
businesses. Be prepared to say goodbye to after-office drinks every day,

45
or a regular weekend get-away trip. If you are in a start-up phase, you
will have to breathe, eat and drink your business until it can stand on its
own. Working hard will be easy if you have a vision, clear goals, and are
passionate with what you do.

7. Constantly Look for Ways to Network. In business, you are judged by

the company you keep - from your management team, board of directors,
and strategic partners. Businesses always need assistance, more so
small businesses. Maybe the lady you met in a trade association meeting
can help you secure funding, or the gentleman at a conference can
provide you with management advice. It is important to form alliances
with people who can help you, and whom you can help in return. To
succeed in business, you need to possess good networking skills and
always be alert to opportunities to expand your contacts.

8. Willingness to Learn. You do not need to be a MBA degree holder or

PhD graduate to succeed in your own business. In fact, there are a lot of
entrepreneurs who did not even finish secondary education. Studies
show that most self-made millionaires have average intelligence.
Nonetheless, these people reached their full potentials, and achieved
their financial and personal goals in business because they are willing to
learn. To succeed, you must be willing to ask questions, remain curious,
interested and open to new knowledge. This willingness to learn becomes
more crucial given the rapid changes in technologies and ways of doing
business.

9. Persevere and have faith. No one said that the road to success is easy.
Despite your good intentions and hard work, sometimes you will fail.
Some successful entrepreneurs suffered setbacks and resounding
defeats, even bankruptcy, yet managed to quickly stand up to make it big
in their fields. Your courage to persist in the face of adversity and ability
to bounce back after a temporary disappointment will assure your
success. You must learn to pick yourself up and start all over again.
Your persistence is the measure of the belief in yourself. Remember, if
you persevere, nothing can stop you.

10. Discipline yourself. Thomas Huxley once said, "Do what you should
do, when you should do it, whether you like it or not." Self-discipline is
the key to success. The strength of will to force yourself to pay the price
of success - doing what others don't like to do, going the extra mile,
fighting and winning the lonely battle with yourself.

B. Explain The Classes Of Entrepreneurship

 Business Entrepreneurs
 Social Entrepreneurs

46
  Intrepreneurs
 Techno-entrepreneurs
 Institutional Entrepreneurs

C. Analyze Life Situations People May Find Themselves In and The

Benefits To Be Derived From the Situations

We find ourselves in different life situations all of the time. It is a

natural law that we try to master these situations as well as have
‘dominion over them’. Some of these situations include:

1. Social Gathering;
2. Visiting A National Park;
3. Subsistence Farming;
4. Political Campaign;
5. City Life/Rural Life;
6. Unemployment;
7. Using Internet;
8. Vocational Training;
9. Hunger/Drought;
10. Family and Home
11. Being In a Foreign Country; and
12. Family Business.

Changes in Life Situations

1. Activities and situations in life are many and varied. These situations
change over time and according to location. Things happen to you, to
your family, within your community, and even in your government that
demand things be changed and done differently. Events in your natural
environment, the legal sector, the financial sector, the labour market,
and even the weather can all force you to do things differently. Even
events happening far away from your area can affect you either directly
or indirectly.

2. In any situation, there is always something that can be done to

alleviate problems. The distinguishing characteristic of enterprising men
or women is their readiness and alertness to do something to respond to
the new situations they find themselves in. Their first challenge is to
study, analyse and interpret the situation. Through this process the new
challenges people face in the new environment can be clearly identified.
The second challenge is to come up with possible solutions addressing
these new challenges, the implementation of which will be full of rewards
for the enterprising man or woman.

47
3. Everybody has the potential to initiate action in any situation if they
have the will, drive and motivation. Most men or women have innate
talents and capabilities that would enable them to come up with valued
responses to any challenges brought about by new situations. However,
the majority of people tend to be slow in reacting or wait for other people
to act first. Enterprising men and women are action or task oriented,
proactive and willing to adopt leadership roles.

4. By taking action when confronted with unfamiliar situations, people

receive benefits that are either physical or psychological. Enterprising
men and women tend to react faster in new situations than ordinary
people. They are able to recognize opportunities, and take advantage of
them as long as the window of opportunity continues to remain open.
They do not wait for other people to act first, and this is consistent with
the risk-taking nature and resourcefulness of enterprising men and
women.

5. Action should be taken immediately when a person is in an unfamiliar

life situation. Implementation and accomplishment of activities is a key
characteristic of enterprising men and women. They do not hesitate,
procrastinate or delay implementation. They are decisive and develop
clear implementation plans which they try to follow as closely as
possible.

6. To respond to and accommodate the changed situation, a person

needs to utilize tools (principles, skills, knowledge) which are appropriate
for that situation. Through proper planning, it is possible to identify the
required resources, be they physical or psychological, to accomplish the
tasks. In the same planning process, the amount of resources required,
as well as their sources, is also identified.

Exercise: Consider the situation in your environment/institution. Identify

priority issues and answer the following question.

1. What is this Life Situation About?

2. What Needs To Be Done?

3. Who Is To Do It?

4. Why Should The One Identified Do It?

5. When Should It Be Done?

6. What Is Needed To Do It?

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7. How Should It Be Done?

8. What Is Your Responsibility In This?

D. Compare and Contrast Technological and Social Entrepreneurship

 Technological Entrepreneurship
The term "technopreneur" arose from within Singaporean culture to
describe an individual whose entrepreneurial endeavours focus on a
technology-centered enterprise. The government of Singapore has
embraced technopreneurship and has launched several initiatives to
promote technopreneurship as a means of economic development. In the
past three years. For example, the government now sponsors university
courses on technopreneurship and helps connect venture capital
companies with budding technopreneurs. This greater openness has
encouraged many new start-ups to form, and the country is well on its
way to fully integrating itself into the New Economy. Singapore's success
with technopreneurship policies has influenced other Asian countries to
begin such initiatives.

For example, Malaysia recently launched its Multimedia Super Corridor

to encourage domestic technology development, and Hong Kong recently
completed the construction of its CyberPort, a technopreneurship-
friendly business district. Finally, technopreneurship encouragement has
also taken place in certain cities in India.

To utilize the educated youth, who have been trained in engineering and
computer programming, international IT companies began locating in
India, particularly in Bangalore. The result is that Bangalore has become
a powerhouse for software production. Although Indian technopreneurs
were not originally at the center of Bangalore's technology development,
they are now beginning to pop up throughout southern India, largely due
to the government's help in creating "the right climate to encourage this
sunrise industry" (Soota, 1998).

Several countries today are building techno-parks where the youths are
encouraged to get involved in IT-related activities or in some cases other
forms of hi-tech activities. These parks are solely devoted to the
development of technopreneurs.

 Social Entrepreneurship:
The idea of “social entrepreneurship” has struck a responsive chord. It is
a phrase well suited to our times. It combines the passion of a social
mission with an image of business-like discipline, innovation, and

49
determination commonly associated with, for instance, the high-tech
pioneers of Silicon Valley. The time is certainly ripe for entrepreneurial
approaches to social problems. Many governmental and philanthropic
efforts have fallen far short of our expectations. Major social sector
institutions are often viewed as inefficient, ineffective, and unresponsive.
Social entrepreneurs are needed to develop new models for a new
century.

In addition to innovative not-for-profit ventures, social entrepreneurship

can include social purpose business ventures, such as for-profit
community development banks, and hybrid organizations mixing not-for-
profit and for-profit elements, such as homeless shelters that start
businesses to train and employ their residents. The new language helps
to broaden the playing field. Social entrepreneurs look for the most
effective methods of serving their social missions.

E. Identify the Different Types of Entrepreneurs: Self Employed,

Opportunistic, Inventors, Pattern Multipliers, etc.
Before starting a business, there is a need to identify the type of
opportunities that are available and the type of entrepreneur you might
choose to be. Many types of entrepreneurs are needed to help the
country to grow. Let’s look at the possibilities.
1. Self-Employed: Individuals who perform all the work and keep all
the profit. This includes everything from family-run stores, agents,
repair persons, accountants, to physicians and lawyers. It can be a
full-time job because no one else is involved or employed within the
trade.
2. Opportunistic: Those who start a business and expand as fast as
possible in order to be able to hire other employees. Usually, these
additional employees have the necessary expertise that the owner
does not have.
3. Inventors: Those with particular inventive abilities who design a
better product and then create companies to develop, produce and
sell the item. High-technology companies of this type are a new
trend.
4. Pattern Those who look for an idea someone else has already had
so that they can then create their own business
5. Multipliers:
a. Based on this model. Franchise operation or chain stores are
a form of this approach.
b. Economy of Scale Those who benefit from a large volume of

50
 sales by offering discount prices and operating with very low
overhead.
6. Acquirers: Those who take over a business started by somebody
else and use their own ideas to make it successful. This often
happens when there is a financial problem in the current
operation. Fresh management ideas may save the business.
7. Buy-Sell Artists: Those who buy a company for the purpose of
improving it so that they can sell it again for a profit.
8. Speculators: Those who purchase a commodity and resell it for a
profit. Real estate, art, antiques and crops are typical speculator
items.
9. Internal: Those who create new ideas and turn them into a
successful project within an existing business. Although they have
neither the profit nor the personal financial risk of their own
business, they need to use the same methods of operation as an
entrepreneur.
10. Franchisee: A franchisee is an individual who starts a
business for which a widely known product image has already
been established. The franchisee owns the business and assumes
its operating responsibilities subject to specifications set out by the
franchisor.
11. Necessity: Unemployed person who chooses to establish his/her
own business in order to survive rather than die of hunger or
continue to be dependent on parents, e.g. shoe shine boy.

F. Identify The Role Of Entrepreneurship In Business, Society And In

Self Employment

Entrepreneurs answer the hard questions that add value to the quality of
life for Society. These include:

• WHAT IS TO BE PRODUCED?
Since two-thirds of the total production of goods and services focus on
the consumer sector, consumers comprise the group who determines
what is to be produced. The entrepreneur takes note of consumer needs,
analyses them and takes decisions on what to produce.

• FOR WHOM IS IT TO BE PRODUCED?

In the economy, the “For Whom” question is generally defined as whoever
has the most money to buy the items which are made from the factors of
production. Generally speaking, the people with the most money are
those who own a successful business (consumers want their goods and

51
services) and/or those who are in occupations in high demand
(businesses want their skills).

• HOW WILL IT BE PRODUCED?

This is determined with the consumer in mind, primarily through the
interaction of businesses and consumers. For example, the Rolls Royce is
a luxurious car made with high expenses and lasts a long time. Many
consumers however cannot afford a Rolls Royce. Entrepreneurs note this
point and produce less exclusive cars at a lower price in order to satisfy
the needs and wants of those who cannot afford a Rolls Royce.

It has been said that “if a man/woman builds a better mousetrap, the
world will beat a path to his/her door”. In a market economy there is a
“golden opportunity” for profit, recognition and service for anyone with the
imagination, energy and drive to do a job better, or provide a better service
than others. The essence of the free enterprise system is competition. It
is competition that makes a man/woman who is already doing a good job
to try harder, instead of “resting on his/her laurels”.

This competition provides, in the end, a better standard of living for the
consumer by offering choices. The consumer “shops” to get the best value
and the best quality. When the purchase is made, the money paid is
“votes” in favour of the product or the service chosen. Those products or
stores or services which do not receive sufficient support (sales) in the
way of “Naira-votes” from customers will perish.

It is the job of the businessman/woman who wants to be successful to

provide a little extra service, a little better product, or in other ways
improve on his/her competition. Many businesses fail each year, but
many succeed. Those that succeed perform services or offer merchandise
for sale in such a way as to satisfy the community in which they operate.
When the business no longer satisfies a number of the population
sufficient to support it, the business fails.

As the population expands, there develops a need for more businesses.

Existing businesses cannot, or will not expand to meet increased
business and, as new population centres grow, new locations are needed.
Every year several million babies are born and these “babies are big
business”. When these babies grow they become the children, the
students, the workers, the managers and the customers of tomorrow.
Even considering deaths, net yearly increase in population is high
annually!

A businessman/woman does not have to be the best manager, or have

the biggest store, to compete successfully. It is relative. If a man/woman
sees a need for a new store in a growing community and begins operating

52
before anyone else, he/she can get a head start on his/her competition.
If the location is good, he/she will soon have business neighbours but,
even then, they may not be direct competition as they may represent
different products and services and actually bring more business.

The point is that anyone with imagination and a little courage to take a
chance on his/her own ability and ambition can generally be successful
in business provided the individual has progressed to the point in
his/her life when he/she is a good business risk. One must acquire the
basic education, skills, knowledge and maturity in order to reduce the
chances of business failure. Any business is a risk. The chances of
failure can be greatly reduced by education, experience and the exercise
of good judgment.

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 TOPIC 4:

UNDERSTAND THE ROLE OF ENTREPRENEURSHIP

IN ECONOMIC DEVELOPMENT

INTRODUCTION:
The contribution of entrepreneurship in the promotion of economic
development should not be underestimated and therefore the need to
highlight it is essential. The entrepreneurs are the change agents and the
prime movers of the economy. It has been established that no country
can grow economically without the positive support of the entrepreneurs
and entrepreneurship. Students should be able to classify the resources
into economic, human knowledge and time and distinguish between
economic development and economic growth.

SPECIFIC LEARNING OUTCOMES:

8. Identify resources and constraints of Entrepreneurship;
9. Classify the resources into economic, human, knowledge and
time;
10. Explain how Entrepreneurship leads to import substitution
and utilization of local resources;
11. Explain how entrepreneurship leads to socio-economic
development;
12. Distinguish between economic development and economic
growth;
13. Explain the role of an entrepreneur in grassroots / local
economic development.

CONTENT:
1. Resources and Constraints of Entrepreneurship/Classify The
Resources Into Economic, Human, Knowledge And Time

Entrepreneurs use human and economic resources to help them to

implement their ideas. Economic resources include money and
equipment. Human resources include energy, skills, knowledge and time.

ECONOMIC RESOURCES

Money: Money is necessary to obtain goods and services that

entrepreneurs want. A major way in which money is obtained is through
employment. The real value of money can be measured in what
necessities, wants and security it will provide for the future.

Equipment: Useful equipment may be as simple as a small knife or a

paper clip. It may be a telephone installed by the telephone company, a
microwave oven with digital electronic controls, or a pocket computer.

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The value of any equipment depends on the efficiency with which it is
used. Even the best equipment cannot think or act on its own.

HUMAN RESOURCES

Energy: Good health is essential to maintaining a high energy level.

Adequate nutrition, rest and exercise are basic necessities. Personal
attitudes also have a strong influence on an individual’s energy supply.
People who accomplish a great deal usually have a positive attitude and
goals to motivate them.

Skills: Skills are developed when a person learns how to do a task

competently. Anyone can develop skills by being willing to put in the
necessary effort. There are several types of skills: practical everyday skills
such as writing legibly or doing household chores; vocational skills that
enable a person to do a particular job; and recreational skills like
dancing, painting, or sports. You can enhance your life by adequately
developing your skills.

Knowledge: A real zest for life and an active curiosity stimulate learning.
Reading, observing and listening are ways of staying in the mainstream
of life. Each individual must take responsibility for acquiring a certain
amount of knowledge by developing communication skills such as
reading, writing, speaking and listening.

Time: Time is a unique resource. Everyone has the same amount

(24 hours a day and 168 hours each week). A large portion of time is
taken up by daily activities like eating, sleeping, school, work and
hygiene. The remaining time should be spent on recreational activities
and special interests that provide satisfaction.

Finally, the extent to which the person(s) involved can acquire or

organize resources in adequate measure will not only influence
performance but also, in some cases, influence whether they start at all.
Examples here include capital, cash, premises, materials, equipment and
labour. The availability of infrastructure (e.g. utilities like electricity,
telephone, roads) and support services might also be important.

2. Explain How Entrepreneurship Leads To Import Substitution And

Utilization Of Local Resources

Entrepreneurship trains the individual to identify, analyse and utilize

opportunities through value addition to create something needed around
him. The recognition of a business opportunity coupled with the ability to
respond effectively is the basis for starting and maintaining successful
ventures. This involves not only generating ideas or identifying

55
opportunities, but also screening and evaluating them to determine the
most viable, attractive propositions to be pursued.

A business opportunity may be defined simply as an attractive

investment idea or proposition that provides the possibility of a return for
the person taking the risk. Such opportunities are represented by
customer requirements and lead to the provision of a product or service
that creates or adds value for its buyer or end-user.

A business opportunity must fulfill, or be capable of meeting the

following criteria:
_ Real demand
_ Return on investment
_ Be competitive
_ Meet objectives
_ Availability of resources and competencies

Goods that are imported into a society must of necessity have local
demands. The strength of this demand is a measure of how successful
the product has been in the market. Entrepreneurs can take any locally
available raw materials and work out the process for creating similar or
identical products (substitutes) thus reducing the need for imports. In
most cases the local substitute is much better than the imported one.
The case of locally produced frozen chicken has shown that fresh local
chicken have better taste and are more desirable.

3. Explain How Entrepreneurship Leads To Socio-Economic

Development

The Entrepreneur in Society

An entrepreneur may be defined as a person who is able to scan the
immediate environment, generate ideas, gather resources and take action
to take advantage of an opportunity. Learners need to be aware of the
possibilities of being entrepreneurial in their personal lives as well as in
conducting their business activities.
Learners should understand that a variety of resources are needed to be
successful in an enterprise. Entrepreneurs are experts in the use of
resources such as the following both in their personal life and in
business situations: money, equipment, energy, skills, knowledge and
time.
For a market-based economy to work well, efficiently and prosperously, it
requires entrepreneurs – those creative men and women who can identify
what the market needs and wants and can find an efficient way to meet
the demand. Entrepreneurs make the economic system work and make

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life better for everyone concerned by creating new products, developing
new and efficient methods, and offering lower prices through effective
competition.
The successful entrepreneur recognizes what consumers want or might
want, and produces it in a competitive manner for sale. Profit is the
return to a business if demand is met effectively, and loss is what a
business gets if it does not meet this demand.
The entrepreneur also makes effective decisions on how to produce
efficiently in order to obtain competitive products whose prices and
quality are acceptable to the customer. A socially responsible
entrepreneur also makes products which meet safety, environmental and
other legal requirements.
Entrepreneurs also make decisions on how to distribute the goods and
services that are produced to those customers willing and able to pay for
them. Through competition, entrepreneurs are able to offer prices that
influence consumers’ decisions to buy.

Entrepreneurship and Leadership Styles

Entrepreneurs are responsible for setting goals and making plans for
their business. To a great extent, the work of employees plays a large
part in implementing these plans and achieving goals. Developing and
maintaining morale is, therefore, an important task of the entrepreneur.
Leadership qualities must be self-developed because these qualities vary
from person to person. Knowing that you are personally responsible for
your leadership ability will help you to strive to make improvements.
There is no single best way to be a leader. Entrepreneurs are individuals
who have developed their own personal styles of leadership. The following
three styles of leadership are commonly used:
o The “iron fisted” or autocratic leader makes decisions and
gives orders without asking the opinion of employees;
o The “let’s vote” or democratic leader gives group members a
voice in decisions;
o The “hands-off” or laissez-faire leader leaves all decisions up
to the group members.

Most leaders use a combination of styles, depending on the group and

the situation.
Leaders in the business world have two main responsibilities:
(a) Task responsibilities, or “getting the job done”, and
(b) People responsibilities, or maintaining employee morale.

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To a great extent, leadership is an attitude which is demonstrated in the
approach entrepreneurs have toward “getting the job done.” A leader is
usually willing to assume challenges which may involve great risks and
potentially great opportunities.
A leader understands the total task to be accomplished and is able to
determine new and innovative ways to accomplish the task. To maintain
morale, a guideline for good leaders to follow is “treat others as you
would like to be treated.” Trying to view a situation through the eyes of
the other people involved will help in developing a positive “you” attitude
towards employees.
A good leader achieves a balance between the following two types of
responsibilities. Sometimes certain situations, such as forming a new
group, call for paying attention to people more than tasks. Other
situations, such as the introduction of a new procedure, will probably
require more attention to tasks rather than people. Understanding
leadership can help entrepreneurs become more effective leaders.

4. Distinguish Between Economic Development And Economic

Growth

Economic Development/progress is an essential component of

development that is conceived of as a multi-dimensional process
involving changes in structures, attitudes and institutions as well
as the acceleration of economic growth, the reduction of inequality
and eradication of absolute poverty. The basic needs and desires of
individuals and social groups within that system, moves away from
a condition of life widely perceived of as unsatisfactory towards a
situation or condition of life regarded materially and spiritually
better.

Economic growth means an expansion in real terms of national

income per head. Closely associated with this must be an
improvement in the overall standard of living of the citizens.

5. Explain The Role Of An Entrepreneur In Grassroots / Local

Economic Development

In most parts of Asia and Africa social entrepreneurs are involved in

building human and social capital at the grassroots with the sole aim of
improving the quality of lives at the grassroots. These entrepreneurs help
community groups to:

58
  Clarify the role of the grass roots in the Nigerian
society of the future
 Learn how to prepare and carry out a shared
community project
 Learn how to map local communities for development
 Learn how to establish personal or group micro-
business by teaching entrepreneurial skills
 Learn how to select projects/events that will foster
bonds and rapport in the community.

Cost benefits to the Nation:

The ability of the ordinary citizens to gain the skills of income generation
and project selection and to improve the status of grassroots
women/youths through self actualization shall mean the establishment
of an enduring political culture. The entrepreneurial component of this
project help to create income for the grassroots women/youths; and
foster linkages between them and their local authorities in a more fruitful
and rewarding manner.

As a process of civic engagement, the Community Consultation Process

seeks to bring together all stakeholders in the community as well as the
traditional authorities, the local, state and federal government to
establish consensus, through sharing of knowledge and experiences on
key policy and operational priorities that should influence the design and
implementation of poverty reduction programs and projects.

Local Enterprise Development (LED), and Grassroots Empowerment

using financial and non-financial intermediations help in achieving a
short, medium and long-term quantifiable employment generation and
skills enhancement; mobilizing resources within the communities for
development. The major benefits of the model are that:
o The programme engages full participation of operatives and
beneficiaries from project development to group formation,
disbursement strategy, management of the individual’s and the
group’s projects.
o It was designed to change old financial habits at the grassroots,
and develop new ones to entrench sustainability of the project. It
was designed to survive political/continuous government
patronage and reside the responsibility for success within the
community
In summary a well-planned LED project will produce a critical mass of
youths and women at the grassroots who are active producers and actors
in local economic development. The envisaged effect will be vibrant

59
grassroots agricultural enterprises as well as local value addition; and
massive grassroots participation in local development activities. The
advocacy component of this programme will create local values as well as
a generation of citizens that will demand transparency and
accountability from their local government officials.

The positive outcome of the grassroots empowerment programme will

reinforce the internal links of solidarity within the community and
increase the community’s confidence in its own skills and in the local
governance.

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 TOPIC 5:

UNDERSTAND ENTREPRENEURIAL
CHARACTERISTICS AND ATTITUDES

INTRODUCTION:
It is very important that the students, who are expected to be potential
entrepreneurs, comprehend the qualities, characteristics and attitudes
involved with entrepreneurial undertakings. It is against this background
that this section is presented so as to guide all stakeholders on
entrepreneurship. Students should learn to evaluate a project
considering its resources: management of time, personnel, equipment
and money as well as understand constraints and problem solving
techniques

SPECIFIC LEARNING OUTCOME:

1. Explain the philosophy, values, scope, need and characteristics of
Entrepreneurship;
2. Explain the profiles of local Entrepreneurs;
3. Demonstrate high sense of innovation, creativity and
independence;
4. Explain the process of acquiring high sense of information seeking
and ability in operating an enterprise;
5. Identify various risks and remedies involved in operating an
enterprise;
6. Evaluate pilot project considering resource, time, personnel,
equipment, money, materials etc.
7. Explain constraints and problem solving techniques;
8. Demonstrate leadership and leadership skills by mobilizing
resources for establishing an enterprise;
9. Demonstrate high level problem solving techniques in overcoming
internal and external constraints.

CONTENT:
1. Explain the Philosophy, Values, Scope, Need and Characteristics of
Entrepreneurship

There are certain characteristics that people should possess or have the
potential to develop if they wish to be entrepreneurial. As a group, when
measured on various personal characteristics and skills, a number of
traits emerge (such as risk-taking ability and leadership) where
entrepreneurs differ from non-entrepreneurs.

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Important Entrepreneurial Traits
Hard Working: running a business requires a lot of energy and drive.
This involves the ability to work for long hours when necessary, to work
intensely in spurts and to cope with less than a normal amount of sleep.
Self-Confident: to succeed, entrepreneurs have to believe in themselves
and in their ability to achieve the goals they have set for themselves. This
is often shown by a belief that “if you want something badly enough and
are prepared to work at it, you’ll usually get it”.
Builds for the Future: the goal for most successful business people is to
build a secure job and income for themselves which is based on their
own abilities. This means entrepreneurs understand that it may take
several years to build up business income to a reasonable standard.
Profit-Oriented: interest in generating money is a clear indicator of an
entrepreneur’s suitability for being a business owner. This means
recognizing that the business comes first. Once profits are generated, the
entrepreneur can make decisions about how the profits can be used – to
expand the enterprise or for personal use.
Goal-Oriented: success in business depends upon being able to set
realistic goals or targets and to work with determination to achieve them.
This ability to set goals (for things the person thinks are worthwhile) and
to work to achieve them is fundamental to being an entrepreneur.
Persistent: all businesses have their problems and disappointments.
Being persistent in solving a problem is one of the keys to being a
successful entrepreneur.
Copes with Failure: All business ventures inevitably contain
disappointments and failures as well as successes. Coping with failures
involves recognizing these failures, learning from them and seeking new
opportunities. Without this characteristic, early failures may end a
person’s attempt at self-employment.
Responds to Feedback: entrepreneurs are concerned to know how well
they are doing and to keep track of their performance. Obtaining useful
feedback and advice from others is another important characteristic of
entrepreneurs.
Demonstrates Initiative: research shows that successful entrepreneurs
take the initiative and put themselves in positions where they are
personally responsible for success or failure.
Willing to Listen: the successful entrepreneur is not an inward looking
person that never uses outside resources. Self-reliance does not exclude
the ability to ask for help when needed from such people as bank
officials, accountants and business advisers. Being able to listen to the
advice of others is a key characteristic of an entrepreneur.

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Sets Own Standards: setting standards of performance and then working
to achieve them is another indicator of a successful entrepreneur. These
standards can be income, quality, sales or product turnover. Most
entrepreneurs want to do better each year, to set and achieve higher
standards from year to year.
Copes with Uncertainty: being an entrepreneur is much more uncertain
than being employed. This uncertainty is about sales and turnover, but it
often also exists in other areas such as material delivery and prices, and
bank support. An ability to cope with this uncertainty without becoming
too stressed is a necessary trait of being an entrepreneur.
Committed: starting and running an enterprise demands total
commitment by the entrepreneur in terms of time, money and lifestyle. It
has to be a major priority in the entrepreneur’s life.
Builds on Strengths: successful business people base their work upon
the strength(s) they have, such as manual skills, interpersonal skills,
selling skills, organizational skills, writing skills, knowledge of a
particular product or service, knowledge of people in a trade and ability
to make and use a network of contacts.
Reliable and Has Integrity: the qualities of honesty, fair dealing and
reliability in terms of doing what one has promised to do are essential
traits of an entrepreneur.
Risk-Taker: being an entrepreneur involves some risks. Entrepreneurs
have the ability to take measured or calculated risks. Such risks involve
working out the likely costs and gains, the chance of success and the
belief in oneself to make the risk pay off. Entrepreneurs may be
considered risk avoiders when they reduce their risks by having others
assume part of the risk. Those who assume the entrepreneur’s risk may
be bankers, suppliers and customers.

2. Explain the Profiles of Local Entrepreneurs

Not all entrepreneurs have all the traits above. However, each
entrepreneur is strongly driven by his personal motive and enjoys doing
what they do irrespective of the amount of hard work required.

Following is the story of some selected entrepreneurs. Each story has

been chosen to demonstrate the diverse drivers of entrepreneurship. The
student is encouraged to interview entrepreneurs in his neighbourhood
to find out how they started their business and what has kept them
going.

Betty owns a currency exchange business: Betty is a young lady of about

38 years. She opened her business 5 years ago after working for a

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financial house.
I had worked in currency exchanges for ten years, and I was determined
to have one of my own someday. In the beginning I had difficulty getting
enough capital. I think banks were reluctant to help me because I’m a
woman. But I needed financial assistance, because I didn’t have enough
money of my own.
Crime is a problem if you own a business in my community. It’s the
biggest difficulty I have with the exchange. Customers might get robbed
as they leave, so I’ve had to spend money for a security guard.
I don’t want to lose my business, so I’ve got to work hard to make a
living. To tell you the truth, I thought I’d be making more money; but, I’m
only breaking even. But I’m happy. I wouldn’t want to have to work for
anyone else again. I’m my own boss and I’ve accomplished something.
I’ve actually made my dreams come true. To me, owning my own
business is just a beautiful, beautiful thing.

Tayo owns a firm specializing in marketing and communications. Tayo, a

35 year old graduate of mass communication from a reputable university,
retired as senior manager of an advertising agency. He started his own
business four years ago.

The time was right for me to start my own business. I had a wife who
worked; we had one child, no responsibilities, and some money. I’d
worked for a small advertising agency for seven years, and I left on very
good terms. I didn’t take any accounts with me, so there were no hard
feelings. A business like mine can be started without a large investment.
I think my major investment was a personal computer. I put down a
deposit for a phone, bought several filing cabinets, and traded
professional services for office space.
When I opened, I sent announcements to everyone I knew. People don’t
call you right away, but they put your name in the back of their minds
and call you later. I also sent out a newsletter to business acquaintances
I thought might be clients some time in the future. Any business (I don’t
care what it is) is 99 per cent selling. If you can’t sell, you won’t make
money.

Emmanuel owns an art gallery which specializes in signed prints and art
posters. Emmanuel is 25 years old. He has little or no formal education. His
talent as an artist was encouraged by visiting artists to the neighbouring
university campus.
When I first thought of opening a gallery, I went around and talked to people
in the art community. I asked them what I needed to know to open a gallery.

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The more people I talked to, the more ideas I got. You never should be shy
about asking other business owners for help. Not everyone’s going to be nice
about sharing ideas, but most business owners are friendly and believe that
competition is healthy. Besides, successful entrepreneurs love to talk about
their successes.
Running a business takes a great deal of time. You have to be willing to work
seven days a week. You have to think about the business 24 hours a day.
Sometimes it gets lonely. There’s no one to turn to, and all the problems are
yours. Having some experience in sales helped me in the business. But many
specific things had to be learned on-the-job. Business schools don’t teach
you how to wrap packages, but that’s an important part of the retail
business.
My advice to anyone thinking about going into business, especially a retail
business, is to be flexible. Move with the market trends. Don’t stock what
you think customers ought to have. Stick to your standards and tastes but
don’t blame the customer if your merchandise doesn’t sell. My gallery is a
great source of pride to me. Still, I always have to keep working to make my
business grow. I don’t feel I’ll ever be able to sit back, put my feet up and
say “I’ve done it.” I shall always have problems, and my task is to solve
them.

John has owned a small restaurant for three years. Like Emmanuel, John
has little or no formal education. It is interesting to know that John has lost
his parents while in the primary school. He had no one to help him with
further education. He is just 28 years old.
I started by working at a restaurant in another town. I waited on tables,
cooked, did the purchasing and bookkeeping and picked up a basic
understanding of the business. Later, I spent some time at two other
restaurants in town learning about managing a restaurant. Most people
think if they are good cooks they can open a restaurant. It’s not that
simple! You’ve got to know every area of the food business, such as
purchasing, advertising, cooking, managing employees and customer
relations.
Young people come to me and say, “I want to learn about operating a
restaurant from you so I can open my own.” I tell them, “That’s okay with
me, I’ll have you cook, bartend, wait on tables and clean up tables.” They
say, “You don’t understand. I want to learn how to manage.” Well, I
believe that you’ve got to “feel the business” from the ground up before
you can run it.
I enjoy the freedom of being in business. I like being my own boss. I have
twelve employees, and it gives me a good feeling when they ask me for
advice. It would be difficult for me to work for somebody else. But I might
become an employee in the future. I’m only twenty-eight years old, and
my career could take many turns. I hope that if I did have to work for

65
someone else, I could pretty much do what I wanted. I like making
decisions and being a leader.

3. Demonstrate High Sense of Innovation, Creativity and

Independence
An enterprise operates in an economic and political system; and as such
the entrepreneur should cultivate attitudes conducive to change.
Understanding these attitudes can help entrepreneurs cope with change
more effectively.

1. Being Flexible and Receptive. These traits are direct opposites to

obstinacy and a closed mind. The person who is receptive to new
ideas, who responds to the forces of change as they occur, is able
to adjust to changing conditions. Read current trade magazines
and literature and as well as observing similar businesses for
ideas.

2. Being Self-confident. Self-confident entrepreneurs can accept

change with the determination to overcome obstacles, compensate
for deficiencies, and strengthen abilities. Being afraid of one's
inadequacies and afraid to try something new for fear of failing
very often prevents growth and eventually leads to failure.

3. Being Optimistic and Enthusiastic. By focusing on the positive

aspects of change instead of the negative ones, the event can be
viewed as challenging instead of threatening. The rewards can be
played up and the costs played down. When we become
enthusiastic about doing something, it is easier to invest our time
and effort and money to bring about the desired effects.

4. Being Decisive and Self-controlled. Coping with change requires

clear thinking and, in many cases, deliberate action.
Circumstances surrounding change are often unexpected, unfair,
frustrating, disappointing, frightening, upsetting, or unpleasant.
Emotions have to be controlled while decisive action is taken to
cope with the change.

5. Being Competitive and Creative. Being competitive means

searching for a better way to improve upon the present situation.
Improvement is one factor that always has to be considered when
planning change.

6. Being Curious and Experimental. Not every new idea is a good

idea. To find the ones that are good ideas, you'll probably look at

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 many possibilities. People who enjoy trying new things can take
disappointment because they balance it against the occasional
thrill they get from implementing a really good idea.

4. Explain the Process of Acquiring High Sense of Information

Seeking and Ability in Operating an Enterprise

The process of acquiring a very high sense of information seeking and

capability to follow through to actualization is called motivation. A person
is motivated when his dreams become very real to him. He develops a
strong urge to follow this dream. This will drive him to seek any relevant
information that will lead to its actualization.
Motivation starts with the desire to be free, to be free from dependency
on others, freedom to live the lifestyle we dream of, freedom to explore
our ideas. Total freedom is not possible or desirable, but the struggle to
achieve that ideal is the basis for motivation.

Motivation is built on three basic elements:

1. Motivation starts with a need, vision, dream or desire to achieve the

seemingly impossible. Creativity is associated with ideas, projects
and goals, which can be considered a path to freedom.

2. Developing a love-to-learn lifestyle, become involved with risky

ventures and continually seek new opportunities. Success is the
result of learning what works and what does not work.

3. Develop the ability to overcome barriers and to bounce back from

discouragement or failure. Achievers learn to tolerate the agony of
failure. In any worthwhile endeavour, barriers and failure will be
there. Bouncing back requires creative thinking as it is a learning
process. In addition, bouncing back requires starting again at
square one.

A loss of any one part and motivation is on the rocks. For example:

• If you like to be creative and love to learn but cannot face up to

failure, you will not go back and try again. Persistent is associated
with bouncing back.

• If you have a unique idea but don’t like taki ng risks, idea is all you
will ever have.

• There must be something in your life that turns you on. You can

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 start by analyzing the lifestyle of your dreams. Remember, money
is not a goal; it is a reward for achieving a goal.

7 Rules of Motivation

1 Set a major goal, but follow a path. The path has mini goals that go
in many directions. When you learn to succeed at mini goals, you
will be motivated to challenge grand goals.

2 Finish what you start. A half finished project is of no use to anyone.

Quitting is a habit. Develop the habit of finishing self-motivated
projects.

3 Socialize with others of similar interest. Mutual support is

motivating. We will develop the attitudes of our five best friends. If
they are losers, we will be a loser. If they are winners, we will be a
winner. To be a cowboy we must associate with cowboys.

4 Learn how to learn. Dependency on others for knowledge supports

the habit of procrastination. Man has the ability to learn without
instructors. In fact, when we learn the art of self-education we will
find, if not create, opportunity to find success beyond our wildest
dreams.
5 Harmonize natural talent with interest that motivates. Natural
talent creates motivation, motivation creates persistence and
persistence gets the job done.

6 Increase knowledge on subjects that inspires. The more we know

about a subject, the more we want to learn about it. A self-
propelled upward spiral develops.

7 Take risk. Failure and bouncing back are elements of motivation.

Failure is a learning tool. No one has ever succeeded at anything
worthwhile without a string of failures.

5. Identify Various Risks and Remedies Involved in Operating an

Enterprise

Small business operators must recognize that they operate in an

environment where uncertainties and change are the norm rather than
the exception. They must be aware of the risks associated with these
changes and be prepared to participate in change if they must continue
to grow their business. Some of these changes are:

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The Social Environment: Changes include the make-up of the
surrounding residential areas, make-up of the clientele frequenting the
business community, and changes in the social climate influencing
demand for various products and services. When neighborhoods change
from predominantly young families to middle-aged or elderly residents,
consumer demand also changes.

The Economic Environment: Since business is primarily a segment of

the economy, rather than the social or political scene, most people
readily recognize the impact of the economy on small business. When
unemployment is high and money is tight, customers cannot spend as
much. During inflation business expenses keep going up. The cost of
living goes up and employees want higher wages. Eventually, the impact
is felt in every phase of operations.

The Political Or Governmental Environment: Fortunately for small

businesses in many countries the political climate is fairly stable.
Nevertheless, small business does have to contend with an abundance of
government paperwork, legislation, and taxation. Small business has to
deal with government at the local, district, and state levels, and in some
cases, at the federal level. In addition, specific government agencies have
become involved with small business.

The Technological Environment: Technological innovation has always

helped to bring about changes in all aspects of society. In the past few
decades, however, it seems that the pace of technological innovation has
increased dramatically. All these technological innovations keep
changing our lifestyle, our needs, our wants, our buying habits. The
businessperson who does not respond will soon find his or her products
and services obsolete.

Remedies: The fact is that we are all dependent on the world around us.
And small business, just like each individual in our society, must cope
with the changes in our environment.

Participating In Change: There are a number of ways small business

owners can affect the external environment to their own benefit, although
much of this environment is beyond their control. Participation in a joint
remodeling project with other businesses in the vicinity can produce a
more attractive and appealing shopping atmosphere, to draw more
customers. Small business owners can back favorable legislation at all
levels of government. They can become involved in the community to
make it a suitable place to conduct business.

Anticipating Change: Probably the most important aspect of coping with

change, however, is in anticipating it, and in planning ahead for it. Many

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of the most effective methods of adjusting and adapting take time to
implement and even more time to produce the desired results. The
longer a person waits to act when change can be anticipated, the more
one limits available options and the effectiveness of the actions.

When anticipated changes in the external environment are considered,

decisions should be made so that they can be incorporated into the
short-range and long-range business plans. Regardless of what specific
plans are used, certain steps should be followed:

1. Determine short- and long-range goals and objectives.

2. Consider options in attaining goals and objectives.
3. Select methods and specific implementation procedures.
4. Review and evaluate results to correct mistakes.

Responding to change when it is already upon you is the least acceptable

of these three patterns. When a situation is already critical you are
forced to settle for second best. Quick solutions with immediate results
are chosen instead of an action that takes time to implement but would
bring better results in the long run.

All this person needs to know is that a prospective benefit can be derived
from a change, and then he or she is ready to move. Not waiting for the
outside world to change, this person looks ahead and lets the
anticipation of change serve as a driving force. By understanding how all
these different factors interact to bring about change, you can make a
more meaningful decision about how you want to handle the problems
associated with change in your own business.

6. Evaluate Pilot Project Considering Resource, Time, Personnel,

Equipment, Money, Materials Etc.

In recent years, project feasibility study has become an increasingly

detailed and technical set of procedures practiced by highly trained
economists and engineers. And yet very often these procedures seem
irrelevant to the practical people designing and managing projects. Why?
Perhaps it is because these procedures ignore some of the most
important questions.

What do practical project designers need to know in order to have

confidence in potential projects? Essentially they need to know:

(1) if the proposed project will really achieve its objectives;

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 (2) how they can improve the likelihood and level of its impact;
(3) whether there is a less expensive way to achieve the same
results; and
(4) whether, all things considered, the benefits justify the costs.

A good technical analysis of a project will consider a number of

production factors that include available resources, time, personnel and
their capabilities, equipment, money available, raw materials and their
sources, etc. A brief of this is given below.

Products:
 Description of the product including specifications relating to their
physical, mechanical and chemical properties;
 Uses of the products

Processing Activities:
 Description of the process showing simplified flow charts indicating
comprehensive materials and energy requirements;
 Consideration of alternative processes and justification for
adopting the chosen process;

Firm Size and Production Schedules:

 From market studies, indication of demand for the product
 Consideration of availability of inputs and possibility of
importation of raw materials (where necessary);
 Consideration of the start up and technologies and know-how;

Machines and Equipment:

 Machines and equipment layout
 Specifications of the machinery and equipment required indicating
rated capacities of each
 Source of supply of machinery and equipment (indicating whether
local or foreign), and including costs and terms
 Comparative analysis of alternative machinery and equipment in
terms of cost, reliability, maintainability and local technical
expertise

Project Location:
 Map showing project location
 Desirability of location in terms of distance from the source of raw
materials, market and other factors
 Desirability of location in terms of infrastructure, and utilities
supply
 Comparative study of different locations indicating advantages and
disadvantages

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Project Layout:
 Description of the project layout showing buildings and facilities
 Types of buildings and estimated cost
 Land improvements such as assess roads, drainages, etc
 Type of supplementary local utilities and cost

Raw Materials:
 Description and specifications relating to their physical,
mechanical and chemical properties
 Current and prospective costs of raw materials including source of
materials
 Local availability, continuity of supply all year round, and prospect
for importation

Waste Disposal:
 Description and quantity of waste to be disposed of
 Description of the chosen waste disposal method and cost
 Comparison with other methods to indicate cost benefit
 Compliance with legal requirements with regards to environmental
impact

Environmental Impact Studies:

 Description of the environment of the project location
 Description of the project needs and processing technologies
 Prediction of impact of project waste products and processing
activity on the environment
 Mitigation measures to treat impacts
 Residual impacts and further studies to treat such residual
impacts

Manpower Requirements:
 Skilled and unskilled labour requirements
 Technical and managerial staff requirement
 Training needs assessment and training schedules
 Proposed remuneration including fringe benefits

7. Explain Constraints and Problem Solving Techniques

When doing business, you need to make routine decisions every day: Do
I have to order raw materials? To what date? From where? Sometimes,

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however, you need to make decisions with a high impact on the future of
your business: Should I enlarge the capacity of my workshop? Should I
hire or fire workers? Should I change my products? Because of their
importance, these latter decisions need to be well-reasoned. For that
reason, it’s worth thinking about a process which leads to such well-
reasoned decisions. The following hints may help to improve your ability
to analyze problems and make decisions.

Process
Before you can make a decision, you have to know, what are the
problems to solve, what are your goals, what are the possibilities you
have to solve the problems and what advantages and disadvantages
every solution has. Thus, the process of making good decision is as
follows:

Step 1: Analyse your situation!

First, analyse the actual situation and consider the most likely future
possibilities. See appendix A for the type of questions, you should make.

Step 2: Set goals!

Now, think about your goals. How would you like the situation to be?

Step 3: Determine your possibilities!

Determine what the possibilities are for reaching your goals

Step 4: Make an assessment of the possibilities!

Every possibility has its strong and its weak points. This is the reason
why you have to analyse the possibilities to see whether they would help
to solve your problems. It is also important to calculate the costs of each
possibility and assess whether it corresponds to your goals.

Step 5: Decide!
You now have enough information to make important decisions about
the future of your business. However, your resources (money, equipment
and workers) are limited. You cannot solve all your problems or take
advantage of all opportunities all at once. You will have to decide which
problems to address first, and which opportunities offer the best chance
of improving your business. In other words, it is necessary to set
priorities and make plans.

Exercises:
Think about your own business and do the following:
· Analyse your present situation and write down the most important
problems.

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· Analyse your future potential: What are the market trends? What will be
the direction of technical development? What are the expected
government strategies? Write down the expected effects of these aspects
on your business.

· Think about your goals. Write them down, ranking them according to
their priorities.
· Think about your problems and your goals. What problem has the
highest priority? Make a ranking and write it down.

· Consider potential solutions to your problems. Write them down.

· Rate every potential solution. What advantages and disadvantages do
they have? How much do they cost and how much labour capacity would
they involve? Rank the solutions and for every problem decide on the
best solution. Write this down.

· Think about your resources. Write down how much money and labour
you could invest in a project to improve your situation.

· Make some decisions. What problem(s) should be solved first and which
solution(s) should be chosen?

A plan is not worth the paper on which it is written until faithfully

implemented. The National experience at budget implementation and or
poor or non implementation of development plans attest to this. The
projects, you decided for should be implemented, because without
implementation the best idea is not worth very much. The
implementation of projects is the primary responsibility of the business
owner or manager.

The following steps will help you implement any project:

Step 1: Determine how to do it!

Decide how to implement your project. List on a sheet of
paper the whole way of implementation, step by step. This
list is your action plan.

Step 2: Determine the dates, when specific steps have to be

completed!
Set the date when each step should be completed.

Step 3: Determine the responsibilities!

Determine who is responsible for each step.

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Step 4: Instruct your workers!
Make sure every worker knows what he has to do and when
he has to do it.

Step 5: Check the work!

Find the answers to the following questions:
· Are there problems which require the help of others?
· Is the quality of work satisfactory?
· Is the work being done on time?
Checking should be done as frequently as necessary.

Step 6: Keep your action plan up to date!

Your action plan is an important tool and should be kept up
to date.

Exercise:

Considering the problem(s) and solution(s) you have chosen, think about
implementation:
· Make an action plan of things to be done.
· Your action plan should indicate:
· What action is necessary?
· Who is responsible for each action?
· When each action should be carried out.

· Write down the specific instructions for each person who has
responsibility for part of the action plan.

· Use your action plan to manage implementation. Follow up frequently

and check to see if each action was carried out as planned

8. Demonstrate Leadership and Leadership Skills By Mobilizing

Resources For Establishing An Enterprise

Leadership Styles
Entrepreneurs are responsible for setting goals and making plans for
their business. To a great extent, the work of employees plays a large
part in implementing these plans and achieving goals. Developing and
maintaining morale is, therefore, an important task of the entrepreneur.
Leadership qualities must be self-developed because these qualities vary
from person to person. Knowing that you are personally responsible for
your leadership ability will help you to strive to make improvements.

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There is no single best way to be a leader. Entrepreneurs are individuals
who have developed their own personal styles of leadership. The following
three styles of leadership are commonly used:
1. the “iron fisted” or autocratic leader makes decisions and
gives orders without asking the opinion of employees;
2. the “let’s vote” or democratic leader gives group members a
voice in decisions;
3. The “hands-off” or laissez-faire leader leaves all decisions up
to the group members.
Most leaders use a combination of styles, depending on the group and
the situation.
Leaders in the business world have two main responsibilities:
(a) Task responsibilities, or “getting the job done”, and
(b) People responsibilities, or maintaining employee morale.
To a great extent, leadership is an attitude which is demonstrated in the
approach entrepreneurs have toward “getting the job done.” A leader is
usually willing to assume challenges which may involve great risks and
potentially great opportunities.
A leader understands the total task to be accomplished and is able to
determine new and innovative ways to accomplish the task. To maintain
morale, a guideline for good leaders to follow is “treat others as you
would like to be treated.” Trying to view a situation through the eyes of
the other people involved will help in developing a positive “you” attitude
towards employees.
A good leader achieves a balance between the following two types of
responsibilities. Sometimes certain situations, such as forming a new
group, call for paying attention to people more than tasks. Other
situations, such as the introduction of a new procedure, will probably
require more attention to tasks rather than people. Understanding
leadership can help entrepreneurs become more effective leaders.

9. Demonstrate High Level Problem Solving Techniques In

Overcoming Internal And External Constraints

Probably the most effective means of reducing the stress involved in

change is in understanding our attitudes of resistance to change and
consciously developing attitudes more conducive to change. The next
step is to reduce the indecision and confusion over how to proceed with
the change by applying decision-making techniques. In this way you can
actively deal with the change instead of letting the change control you. A
basic decision-making technique can be applied to solving any problem

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and in particular coping with change. The four steps are:
understanding the situation, define the problem, find alternatives, and
select action.

1. Understanding the Situation: We need to understand what the

driving forces are and what the restraining forces are, whether they will
be increasing or decreasing, and how that is going to affect the business
in the short and long term. Let's consider an example of a change
situation in small business and follow it through each of the four steps in
the decision-making process. Assume that you operate a moderately
successful store in the business district of Abuja. The change situation
constitutes a new shopping area being planned for the outskirts of the
city. Now, the first step in the decision-making process is to understand
the situation.

The first question is, what changes can you anticipate in the driving
forces and restraining forces acting on your small business? Will the
new shopping area draw customers away from the present business
district? Will any of the big customer-drawing businesses be relocating?
Is your business district showing signs of physical deterioration? Are
customers already dissatisfied with the shopping convenience of the
business district? If you take no special action, what are the chances of
declining profit and eventual business collapse? You need to examine
every aspect of the situation before you can even define the problem.

2. Defining the Problem. The problem might be defined as a need to take

some kind of action now, which will have one of four different effects:

1. Prevent the new market area from eventually destroying the

business.
2. Reduce the negative impact of the market area as much as
circumstances allow.
3. Take positive action if possible to counter directly the draw of the
market area.
4. Take advantage of the draw of the new market area by relocating or
expanding into it.

3. Finding alternatives: This step is a very complex and critical one

in the decision-making process. You need to do a little bit of research to
make sure that you do not overlook the alternative that may be your best
bet. Then you need to take each realistic alternative and explore its
potential, identifying advantages or disadvantages, costs and benefits,
short-term and long-term effects, and other factors that might influence
its effectiveness.

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With our example, the four action alternatives presented above reflect the
degree of involvement in the change as we define the problem. Each of
those four alternatives calls for specific alternative actions to achieve
basic objectives.

For instance, the final alternative, taking advantage of the draw of the
new market area, presents several alternatives. They include relocating
in the market area when it opens, keeping the present store location and
opening a sister store in the market area, closing the present business
operation and reinvesting in a different kind of business in the new
market area, and others.

The third alternative, directly countering the draw of the new market
area, offers several choices. One is to work with the city to improve the
appeal and convenience of the business district. After all, the city will
eventually lose taxes if the business district deteriorates and collapses.
Another is to work with neighbouring businesses to establish a central
theme for widespread remodeling projects, which would create a more
appealing atmosphere for the customer.

The small business owner could replace the negative impact of the new
market area in a number of ways without taking any of these decisive
actions. The store could be redecorated, remodeled, or rearranged inside
to be a more pleasant place. New product lines could be added to draw
new customers or provide a better selection. New services could be
added. In short, by making special efforts to keep the customers
satisfied you can make the drawing power of the new shopping area a
little less strong.

4. Selecting Action: Once all the alternatives have been spelled out
and the impact and potential of each has been studied, it is time to select
the action that best fits your goals and objectives, your capabilities and
limitation, and follow through.

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 TOPIC 6:

UNDERSTAND THE KEY COMPETENCIES AND DETERMINING FACTORS FOR SUCCESS

IN ENTREPRENEURSHIP

INTRODUCTION:
For entrepreneurship to succeed there are certain prerequisites which
form the core competencies that are basic for attaining success. These
competencies are discussed and highlighted in this section. Students
should learn to collect data about themselves, and use such data to
determine “who am I”, assessing personal efficiency, rating of concepts,
self-knowledge as well as identifying core skills, and success factors
required for entrepreneurship. Students would also observe the
behavioural pattern in moderate risk taking, goal setting etc. and also
learn how to play relevant business games.

SPECIFIC LEARNING OUTCOMES:

1. Identify the key competencies required in setting up a successful
small business; Knowledge, Skill and Traits;
2. Identify key success factors in setting up a small business;
Resources, Ability, Motivation and Determination, Idea and Market
etc.
3. Define individual life goals and link them to Entrepreneurship;
4. Identify the strength and weaknesses in 3 above;
5. Explain business games and how to play them
6. Explain the behavioural pattern observed in 5 above on:
a. Moderate risk taking;
b. Goal setting;
c. Learning from feed back;
d. Taking personal responsibility;
e. Confidence and self reliance.

Content:
1. MAJOR COMPETENCIES REQUIRED FOR SUCCESSFUL
ENTREPRENEURSHIP

Competencies may be defined as:

_ a body of knowledge
_ a set of skills
_ a cluster of traits

Definitions

_ Knowledge consists of a set or body of information stored, which may

be recalled at an appropriate time.

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_ Skill is the ability to apply knowledge.

_ Trait is the aggregate of peculiar qualities or characteristics which

constitutes personal individuality.

The following lists provide examples of the competencies required for

setting up and managing a successful small business:

Knowledge
Possessing information on, or familiarity with:
• A business opportunity
• The market
• Customers
• Competitors
• Production processes
• Technical matters
• Business management
• Sources of assistance

Skills
May be of a technical or managerial nature. They relate to abilities to
perform tasks or functions in areas such as:
Technical Managerial
• Engineering • Marketing (including selling)
• Computing • Financial management
• Carpentry • Organization
• Mechanics • Planning
• Catering • Leadership

Traits
Personal characteristics of successful entrepreneurs:
• Takes initiative
• Sees and acts on opportunities
• Is persistent
• Personally seeks information
• Is concerned for high quality
• Is committed to fulfilling contracts
• Is oriented to efficiency
• Plans systematically
• Solves problems in original ways
• Demonstrates self-confidence
• Takes calculated risks
• Is assertive
• Is persuasive
• Uses influential strategies

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2. KEY SUCCESS FACTORS IN SETTING UP A SMALL BUSINESS

How do I become an entrepreneur? How can I set up a successful

business? These are questions that people often ask. Unfortunately,
however, no foolproof answer or formula has been identified as yet.
Notwithstanding this, success – according to the literature, observations
and experience – depends on that peculiar ability to spot opportunities in
the market and act on them by organizing the necessary resources to
offer something attractive to customers and taking the attendant risks.
This is the essence of entrepreneurship in a business context.

The crucial ingredient in the whole process is the entrepreneur. He/she

takes the initiative and also bears the risk in creating and/or organizing
an attractive offer of value to potential customers. The entrepreneur’s
ability to do this successfully depends on 4 factors, namely: Motivation,
Ability, Idea and Resources. The acronym – MAIR –may help you
remember these factors more easily. These are explained in turn.

Idea and Market

The important issue to be determined here is the viability of the idea,
project, product or service to be offered. In other words, does the idea,
product or service meet a need or want for which there are customers
who can afford it and are willing to use/purchase it in sufficient
quantities to make the whole project worthwhile (i.e. return a profit, in a
business context)? How is the proposition to be offered more desirable or
better than what is currently available and how will competitors react?

Motivation and Determination

It is widely acknowledged that, to be successful, the individual or group
needs to be highly motivated and determined to set up the business to
make it succeed. This will be reflected, for example, in how persistent
they are in overcoming obstacles that might get in the way, how they go
about seeking information and how they act on opportunities. Additional
indicators might be their commitment and attitude to work (quality,
efficiency, long hours), previous attempts to set up a business and the
support of their family or partners.

Ability
Another important question is whether the individual or others involved
have particular abilities – these may be knowledge, technical or
managerial skills of relevance to the business or project. One way of
making up for any lack in this area could be to team up with people who
have the necessary expertise, or buy it in.

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Resources
Finally, the extent to which the person(s) involved can acquire or
organize resources in adequate measure will not only influence
performance but also, in some cases, whether they start at all. Examples
here include capital, cash, premises, materials, equipment and labour.
The availability of infrastructure (e.g. utilities like electricity, telephone,
roads) and support services might also be important.

Business Plan
In order to turn the above 4 components into reality, a plan would be
required. In business, this is normally referred to as a Business Plan. On
the whole a business plan should show four main things, namely:
• Where you currently are with your idea, project or business;
• What you wish to do;
• How you propose to go about it; and
• That the project is worthwhile.

Organization and Management

The business then needs to actually start operating and, once this is
done, it would need to be managed. In setting up the business, or before
starting to operate, there may be legal or other statutory requirements to
be met. There may be a need to consult professionals such as lawyers,
accountants and/or staff from small business support agencies for
advice. The whole business and the process need to be managed, and
how well this is done – in particular, finding and dealing with customers,
management of cash and finances, marketing, handling employees,
dealing with suppliers, control systems – will all affect performance.

Example of an Internet Café

Resources
_ Desktop PCs, all networked
_ Dial-up, broadband or wireless connection
_ Account with an Internet Service Provider (ISP) or satellite provider
_ Software to manage transactions and accounts
_ Desks and chairs
_ Air conditioners or fans
_ Staff to run/supervise

Ability
_ IT or computing knowledge and skills
_ Able to install software and do routine maintenance and repair
_ Book-keeping and basic organization
_ Able to teach/train clients in basic computing and internet browsing
_ Familiarity with internet search engines and e-mail

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Motivation and Determination
_ Able to work or operate long hours for 6 or7 days a week
_ Innovative
_ Able to use influential strategies
_ Problem-solver
_ Takes initiative
_ Concern for efficiency

Idea and Market

_ Viability: number and nature of internet or cyber cafés in the
neighbourhood or within, say, a 3 km radius – the fewer the better
_ Speed and prices vis-à-vis other cafés in area – should be competitive
_ Number of people living and/or working in the area – the more, the
better
_ Profile of people living or working in the area: low to middle income
best: – not so rich as to be able to afford their own PCs and internet
connection, but not so poor as not to be able to afford the service
_ Nice ambiance – with soft drinks and snacks for sale; and background
music in a well-ventilated room
_ Provision of ancillary services for sale, such as fax, printing,
photocopying, sale of diskettes, CD-ROMs, etc.

3. PERSONAL GOAL SETTING: LIVE YOUR LIFE YOUR WAY.

Goal setting is a powerful process for thinking about your ideal future,
and for motivating yourself to turn this vision of the future into reality.

The process of setting goals helps you choose where you want to go in
life. By knowing precisely what you want to achieve, you know where you
have to concentrate your efforts. You'll also quickly spot the distractions
that would otherwise lure you from your course. More than this,
properly-set goals can be incredibly motivating, and as you get into the
habit of setting and achieving goals, you'll find that your self-confidence
builds fast.

Achieving More with Focus

Goal setting techniques are used by top-level athletes, successful
business-people and achievers in all fields. They give you long-term
vision and short-term motivation. They focus your acquisition of
knowledge and help you to organize your time and your resources so that
you can make the very most of your life.

By setting sharp, clearly defined goals, you can measure and take pride

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in the achievement of those goals. You can see forward progress in what
might previously have seemed a long pointless grind. By setting goals,
you will also raise your self-confidence, as you recognize your ability and
competence in achieving the goals that you have set.

Starting to Set Personal Goals

Goals are set on a number of different levels: First you create your "big
picture" of what you want to do with your life, and what large-scale goals
you want to achieve. Second, you break these down into the smaller and
smaller targets that you must hit so that you reach your lifetime goals.
Finally, once you have your plan, you start working to achieve it.

We start this process with your Lifetime Goals, and work down to the
things you can do today to start moving towards them.

Your Lifetime Goals

The first step in setting personal goals is to consider what you want to
achieve in your lifetime (or at least, by a time at least, say, 10 years in
the future) as setting Lifetime Goals gives you the overall perspective that
shapes all other aspects of your decision making.

To give a broad, balanced coverage of all important areas in your life, try
to set goals in some of these categories (or in categories of your own,
where these are important to you):
 Artistic:
Do you want to achieve any artistic goals? If so, what?
 Attitude:
Is any part of your mindset holding you back? Is there any part of
the way that you behave that upsets you? If so, set a goal to
improve your behavior or find a solution to the problem.
 Career:
What level do you want to reach in your career?
 Education:
Is there any knowledge you want to acquire in particular? What
information and skills will you need to achieve other goals?
 Family:
Do you want to be a parent? If so, how are you going to be a good
parent? How do you want to be seen by a partner or by members of
your extended family?
 Financial:
How much do you want to earn by what stage?
 Physical:
Are there any athletic goals you want to achieve, or do you want
good health deep into old age? What steps are you going to take to
achieve this?

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  Pleasure:
How do you want to enjoy yourself? - you should ensure that some
of your life is for you!
 Public Service:
Do you want to make the world a better place? If so, how?

Exercise:

Spend some time brainstorming these, and then select one goal in each
category that best reflects what you want to do. Then consider
streamlining and prioritizing again so that you have a small number of
really significant goals on which you can focus.

As you do this, make sure that the goals that you have set are ones that
you genuinely want to achieve, not ones that your parents, family, or
employers might want (if you have a partner, you probably want to
consider what he or she wants, however make sure you also remain true
to yourself!)

Starting to Achieve Your Lifetime Goals

Once you have set your lifetime goals, set a 25 year plan of smaller goals
that you should complete if you are to reach your lifetime plan. Then set a
5 year plan, 1 year plan, 6 month plan, and 1 month plan of progressively
smaller goals that you should reach to achieve your lifetime goals. Each of
these should be based on the previous plan.

Then create a daily to-do list of things that you should do today to work
towards your lifetime goals. At an early stage these goals may be to read
books and gather information on the achievement of your goals. This will
help you to improve the quality and realism of your goal setting.

Finally review your plans, and make sure that they fit the way in which
you want to live your life.

Staying on Course
Once you have decided your first set of plans, keep the process going by
reviewing and updating your to-do list on a daily basis. Periodically
review the longer term plans, and modify them to reflect your changing
priorities and experience.

Goal Setting Tips

The following broad guidelines will help you to set effective goals:

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  State each goal as a positive statement: Express your goals
positively - 'Execute this technique well' is a much better goal than
'Don't make this stupid mistake.'

 Be precise: Set a precise goal, putting in dates, times and amounts

so that you can measure achievement. If you do this, you will know
exactly when you have achieved the goal, and can take complete
satisfaction from having achieved it.

 Set priorities: When you have several goals, give each a priority.
This helps you to avoid feeling overwhelmed by too many goals,
and helps to direct your attention to the most important ones.

 Write goals down: This crystallizes them and gives them more
force.

 Keep operational goals small: Keep the low-level goals you are
working towards small and achievable. If a goal is too large, then it
can seem that you are not making progress towards it. Keeping
goals small and incremental gives more opportunities for reward.
Derive today's goals from larger ones.

 Set performance goals, not outcome goals: You should take care to
set goals over which you have as much control as possible. There
is nothing more dispiriting than failing to achieve a personal goal
for reasons beyond your control. In business, these could be bad
business environments or unexpected effects of government policy.
In sport, for example, these reasons could include poor judging,
bad weather, injury, or just plain bad luck. If you base your goals
on personal performance, then you can keep control over the
achievement of your goals and draw satisfaction from them.

 Set realistic goals: It is important to set goals that you can achieve.
All sorts of people (employers, parents, media, society) can set
unrealistic goals for you. They will often do this in ignorance of
your own desires and ambitions. Alternatively you may set goals
that are too high, because you may not appreciate either the
obstacles in the way, or understand quite how much skill you need
to develop to achieve a particular level of performance.

SMART Goals:
A useful way of making goals more powerful is to use the SMART
mnemonic (memory aid). While there are plenty of variants, SMART
usually stands for:

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  S Specific
 M Measurable
 A Attainable
 R Relevant
 T Time-bound

For example, instead of having “to sail around the world” as a goal, it is
more powerful to say “To have completed my trip around the world by
December 31, 2015.” Obviously, this will only be attainable if a lot of
preparation has been completed beforehand!

Achieving Goals
When you have achieved a goal, take the time to enjoy the satisfaction of
having done so. Absorb the implications of the goal achievement, and
observe the progress you have made towards other goals. If the goal was
a significant one, reward yourself appropriately. All of these help you
build the self-confidence you deserve!

With the experience of having achieved this goal, review the rest of your
goal plans:
 If you achieved the goal too easily, make your next goals harder
 If the goal took a dispiriting length of time to achieve, make the
next goals a little easier
 If you learned something that would lead you to change other
goals, do so
 If you noticed a deficit in your skills despite achieving the goal,
decide whether to set goals to fix this.

Failure to meet goals does not matter much, as long as you learn from it.
You should feed lessons learned back into your goal setting program.

Remember too that your goals will change as you get older. Adjust them
regularly to reflect growth in your knowledge and experience, and if goals
do not hold any attraction any longer, then let them go.

Key points:
Goal setting is an important method of:
 Deciding what is important for you to achieve in your life;
 Separating what is important from what is irrelevant, or a
distraction;
 Motivating yourself; and
 Building your self-confidence, based on successful achievement of
goals.

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If you don't already set goals, do so and start now. As you make this
technique part of your life, you'll find your career accelerating, and you'll
wonder how you did without it!

4. GAMES AND LEARNING

“Games are… the most ancient and time-honored (sic) vehicle for
education. They are the original educational technology, the natural one,
having received the seal of approval of natural selection. We don’t see
mother lions lecturing cubs at the chalkboard; we don’t see senior lions
writing their memoirs for posterity. In the light of this, the question, ‘Can
games have educational value?’ becomes absurd. It is not games but
schools that are the newfangled notion, the untested fad, the violator of
tradition. Game-playing is a vital educational function for any creature
capable of learning.” (Crawford 1982)

Computer games are fast becoming a growing part of our culture; the
global market is worth billions of dollars. In 2002, the world market for
‘games and edutainment/reference software’ realized 16.9 billion US
dollars, with 3.3 million games consoles being sold in the UK alone
(ELSPA 2003). People of all ages, but most visibly children, play these
games, often dedicating long periods of time in total concentration.
Today, researchers, teachers and designers of learning resources are
beginning to ask how this powerful games medium might be used to
support learning. Rather than shutting the door of the school against the
computer game, there is now increasing interest in asking whether
computer games might be offering a powerful new resource to support
learning in this information age. There is a considerable current thinking
about the role of computer games in supporting learning inside and out
of school.

Researchers and commentators have attempted to understand the lure of

computer games. This has been characterized as a combination of
fantasy, challenge and curiosity, and a level of engagement described as
‘flow’ where players become oblivious to distractions. Concern has been
expressed that this leads to a neglect of other activities, often assumed to
be automatically more worthy. Other authors see games play as
inherently valuable, leading to a development of a range of skills and
competences that may transfer to other social and work-related uses of
digital technologies.

Nonetheless, teachers and parents have come to recognize that games

play can support valuable skill development, such as:
 strategic thinking
 planning

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  communication
 application of numbers
 negotiating skills
 group decision-making
 data-handling.

There are two key themes common to the development of games for
education:- namely:
1. The desire to harness the motivational power of games in
order to ‘making learning fun’.
2. A belief that ‘learning through doing’ in games such as
simulations offers a powerful learning tool.

Software designed to support learning often borrows from game design in

an attempt to replicate the levels of engagement and harness this to
facilitate more traditional learning. Rather than aiming for an experience
that superficially resembles leisure-based ‘fun’ activities, or one which
attempts to conceal the educational purpose, it might be argued that we
should understand the deep structures of the games play experience that
contribute to ‘flow’ and build these into environments designed to
support learning. Researchers, reflecting on how to design engaging
learning experiences, draw on the above definitions to propose eight
characteristics as essential in games aimed at teaching skills. These
engagements are:
1. task that we can complete
2. ability to concentrate on task
3. task has clear goals
4. task provides immediate feedback
5. deep but effortless involvement (losing awareness of worry and
frustration of everyday activity)
6. exercising a sense of control over our actions
7. concern for self disappears during flow, but sense of self is
stronger after flow activity; and
8. sense of duration of time is altered.

CATEGORISING GAMES

As games have become more complex in terms of graphics, complexity,

interaction and narrative, so a variety of genres have increasingly come
to dominate the market. There is, however, no standard categorization of
such games; different stakeholders in the games industry, e.g. game
outlets, developers, academics, web review sites, use a taxonomy
appropriate to their own audience. The system employed by Herz (1997)
which closely resembles that used by many in the contemporary games
industry presents these major categories as:

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  action games - these can be sub-categorized into shooting games,
‘platform’ games (so called because the players’ characters move
between onscreen platforms) and other types of games that are
reaction-based
 adventure games - in most adventure games, the player solves a
number of logic puzzles (with no time constraints) in order to
progress through some described virtual world
 fighting games - these involve fighting the computer-controlled
characters, or those controlled by other players
 puzzle games - such as Tetris
 role-playing games - where the human players assume the
characteristics of some person or creature type, eg elf or wizard
 simulations - where the player has to succeed within some
simplified recreation of a place or situation e.g. mayor of a city,
controlling financial outlay and building works
 sports games
 strategy games - such as commanding armies within recreations of
historical battles and wars.

Simulations are one of the most popular types of entrepreneurship

educational games. Cruickshank (1980, p76) defined a simulation game
as one “…in which participants are provided with a simulated
environment in which to play”, while defining simulations in their own
right as (p75) “the products that result when one creates the appearance
or effect of something else”. Laurel (1991) claims that:
“Educational simulations (as opposed to tutorial and drill-and-
practice forms) excel in that they represent experience as opposed
to information. Learning through direct experience has, in many
contexts, been demonstrated to be more effective and enjoyable
than learning through ‘information communicated as facts’. Direct,
multi-sensory representations have the capacity to engage people
intellectually as well as emotionally, to enhance the contextual
aspects of information, and to encourage integrated, holistic
responses.”

Simulation games possess several attractive properties:

 they can be designed in such a way that the player receives instant
feedback regarding the consequences of their actions
 the game controller or designer can add, remove or adjust various
factors within the game
 compared to real-world training where materials and resources are
used, a simulation is often a much cheaper option
 they enable dangerous actions to be undertaken in a safe virtual
environment. For example, many people in the nuclear power
industry train extensively on PC-based simulations

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In theory, as more powerful gaming technology and graphics capabilities
become standard, so simulation games can become more realistic in
terms of appearance and plausibility. However, this is not necessarily the
case; real-world situations often involve long periods of inactivity,
punctuated by periods of action, which does not map well onto the
‘continuous flow’ and engagement of a game. The value of collaborative
learning, and the role of computers in promoting such activity have been
thoroughly researched. Whilst such collaboration cannot be assumed,
and children have to learn to work together, computer-based activities
can help in this process. How this collaboration translates into a
multiplayer gaming environment and how these environments might be
used to support learning, remain some of the most interesting areas for
potential further research and development

LEARNING WITH GAMES IN/OUTSIDE SCHOOL

In line with developments in learning theory, research that has examined

children’s self-motivated computer games sees their learning as a
process of participation in practice rather than a process of acquisition of
facts or disconnected ‘pieces’ of information, i.e. ‘doing’ rather than
‘knowing’. This takes a variety of different forms.

1 Learning ‘Competencies’

Since games are often characterized by a trial-and-error approach to

overcoming challenges or obstacles, commentators have suggested that
these games can support the development of logical thinking and
problem solving skills (Ink-pen et al1995; Higgins 2000; White-bread
1997).
Much of this research has focused on ‘strategy or adventure games’,
which encourage students in exploratory quest-like scenarios with a high
degree of control over their progress (Malone 1983; Russell 1990).

2 Learning to learn – New Approaches to Collaboration

Research into the wider context of games play indicates that, contrary to
populist media opinion, games are often a facilitator to social,
communication and peer activities. This has always been the case; in the
early years of computer gaming, a ‘playground culture’ of discussing,
swapping, buying and selling games emerged. Interactive communities
often develop around mainstream games with or without developers’
encouragement, as enthusiasts create websites, discussion boards and
other communication environments to exchange information, experiences
and even resources related to a game.

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3 Learning to Participate in Practice

Central to the argument about what video games offer to learning is

Gee’s assertion that semiotic domains are shared by groups of people,
described as ‘affinity groups’, sharing knowledge, skills, tools and
resources to form complex systems of interrelated parts. Within an
affinity group, learners gain resources from fellow members that equip
them to solve problems within, and perhaps outside of, the specific
domain - and this is evidence of ‘active learning’. For Gee, however the
crucial aspect of this practice is ‘critical learning’:
“The learner needs to learn not only how to understand and
produce meanings in a particular semiotic domain that are
recognizable to those affiliated with the domain, but, in addition,
how to think about the domain at a ‘meta’ level…(and) how to
produce meanings that, while recognizable, are seen as somehow
novel or unpredictable.” (p23)’

5. EXPLAIN THE FOLLOWING BEHAVIOURAL PATTERNS

5a. RISK TAKING

Risk taking is an integral part of business and life, but so few people
know how to manage it properly. The word risk has a slightly negative
connotation to it — it implies danger, tension, and possible loss. But
risk also has a positive side, the chance of hitting a big win, of getting
more on the back side than you invest on the front side.

All risks are not equal, however. Some risks are just plain dumb, and
you should never take them. But even in those cases, there’s usually
some emotional benefit. The city of Las Vegas (famous for its array of
casinos) thrives on such benefits. But what about intelligent
risks? Those are obviously the ones where the upside outweighs the
downside, at least probability-wise. You won’t find too many of those
risks in casinos.

Now we all know it’s generally a bad idea to take dumb risks, where your
expected outcome is negative and the potential upside is very
limited. But guess what… It’s equally stupid to pass up an intelligent
risk, where your expected outcome is positive and the potential downside
is very limited.

The most intelligent risks are those where the potential downside is
limited, but the potential upside is virtually unlimited. Those are the
risks you should jump to take.

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This planet has enough total and complete idiots. Please don’t be one of
them. You will lose a lot more by missing big opportunities (by not
taking risks) than you ever will from making mistakes.

Here are some examples of intelligent risk taking (indicating the worst
expected outcomes as well as the best):

 Ask someone out on a date (worst case downside = one-time

embarrassing rejection, best case upside = lifelong relationship
with your soul-mate)
 Ask for a raise or promotion (worst case downside = boss says no,
best case upside = permanent raise or promotion)
 Start a blog (worst case downside = waste some of your time, best
case upside = change your life and the world for the better)
 Join a new club (worst case downside = waste some of your time
and quit, best case upside = lifelong friendships plus a lot of other
benefits)
 Take a cooking class (worst case downside = waste a little time and
money, best case upside = become a permanently better chef)

Most of us are pretty good at avoiding dumb risks, unless you happen to
be reading this from a jail cell. But we’re exceptionally lousy at taking
intelligent risks. The stupidest mistakes we make are errors of omission.

The key to intelligent risk-taking is to look far enough ahead. When

thinking about personal growth, I don’t just think a year ahead or five
years ahead. I think across the span of my whole lifetime (sometimes
even thinking beyond the grave… seriously). I ask myself, “What
difference might this make over the span of the next several
decades?” Over that time span even small changes you might make
today can create huge long-term payoffs. And the decisions to do
nothing today means you are automatically denying yourself any long-
term benefits. Doing nothing isn’t neutral. Doing nothing is way, way
negative.

This is one of the reasons it’s so important to install good habits. In the
short-term, it’s a struggle, often a painful one. We have to deal with
disappointment again and again. We fall flat on our faces, dust
ourselves off, and throw ourselves into the ring anew, only to be
pummeled once again. And we use that same tired mantra, “This time it
will be different!” — a mantra that fails 19 times out of 20.

What keeps me from getting discouraged when my failures outnumber

my successes is to keep thinking long-term. I often must endure a lot of
failures to hit the next big breakthrough. So I just plow through those
failures as fast as possible. It’s like a conveyor belt — there’s a new

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success on that belt somewhere ahead, and the faster the belt moves, the
sooner it will arrive.

It’s amazing how much long-term difference just a small change you
make today can make. Just a little more self-discipline, a little more
courage, a little more persistence, a little more enthusiasm — these can
produce huge gains in the long run.

Do not give up during the flat period!

The flat period is the hardest because you’re working hard and getting
very little to show for it. Maybe you keep working on your social skills
but can’t seem to get a date to save your life. Maybe you keep working
on your internet skills but still can’t figure out how to make your own
web site. Maybe you start a new business and just can’t seem to get
anything going.

That’s life. Give yourself permission to work hard and have little to show
for it, as long as you intelligently hold a positive long-term outlook.

Short-term thinking and risk aversion dominate this planet. A person

like me who embraces intelligent risk and thinks decades ahead
doesn’t fit in very well here. That was a bit of a problem for me when I
was younger, but now I just embrace it. It’s simply who I am. I get all
the support I need from my connection to my purpose and from feeling a
sense that I’m working to serve the highest good of all. The whole world
could turn against me, and it wouldn’t make me want to give up. It
would probably just inflame me more. I never get discouraged because I
believe my approach to life will produce some amazing results in the long
run. It’s only a matter of time.

Love is more powerful than fear. I overcome fear of risk by tapping ever
more deeply into what I love most. The thought of taking a risk produces
excitement instead of anxiety.

Find an intelligent risk you can take today. Most likely it won’t pan
out. But what if it does? Celebrate either way because no matter what
the outcome, you’ll gain courage just by making the attempt.

5b. GOAL SETTING

The car is packed and you're ready to go, your first ever cross-country
trip. From the Garden City of Port Harcourt to the rolling hills of Jos
through Benin, Akure, Lokoja, Abuja, you're going to see it all. You put

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the car in gear and off you go. First stop, the ancient city of Benin of
Fame and on .. and on till you reach destination.

A little while into the trip you need to check the map because you've
reached an intersection you're not familiar with. You panic for a moment
because you realize you've forgotten your map.

But you say the heck with it because you know where you're going. You
take a right, change the radio station and keep on going. Unfortunately,
you never reach your destination.

Too many of us treat goal setting the same way. We dream about where
we want to go, but we don't have a map to get there.

What is a map? In essence, where is the guide in written word for getting
to the destination from where we are now?

What is the difference between a dream and a goal? Once again, the
written word.

Goal setting however is more than simply scribbling down some ideas on
a piece of paper. Our goals need to be complete and focused, much like a
road map, and that is the purpose behind the rest of this article.

If you follow the 7 goal setting steps I've outlined in this article you will
be well on your way to becoming an expert in building the road maps to
your goals.

1. Make sure the goal you are working for is something you really want,
not just something that sounds good.

When setting goals it is very important to remember that your goals must
be consistent with your values.

2. A goal can not contradict any of your other goals.

For example, you can't buy a =N=7,500,000.00 house if your income goal
is only =N=500,000.00 per year. This is called non-integrated thinking
and will sabotage all of the hard work you put into your goals. Non-
integrated thinking can also hamper your everyday thoughts as well. We
should continually strive to eliminate contradictory ideas from our
thinking

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3. Develop goals in the 6 areas of life:

Family and Home Financial and Career

Spiritual and Ethical Physical and Health
Social and Cultural Mental and Educational

Setting goals in each area of life will ensure a more balanced life as you
begin to examine and change the fundamentals of everyday living.
Setting goals in each area of life also helps in eliminating the non-
integrated thinking we talked about in the 2nd step.

4. Write your goal in the positive instead of the negative.

Work for what you want, not for what you want to leave behind. Part of
the reason why we write down and examine our goals is to create a set of
instructions for our subconscious mind to carry out. Your subconscious
mind is a very efficient tool, it can not determine right from wrong and it
does not judge. It's only function is to carry out its instructions. The
more positive instructions you give it, the more positive results you will
get.

Thinking positively in everyday life will also help in your growth as a

human being. Don't limit it to goal setting.

5. Write your goal out in complete detail.

Instead of writing "A new home," write "A 4,000 square foot contemporary
with 4 bedrooms and 3 baths and a view of the mountain on 20 acres of
land.

Once again we are giving the subconscious mind a detailed set of

instructions to work on. The more information you give it, the more clear
the final outcome becomes. The more precise the outcome, the more
efficient the subconscious mind can become.

Can you close your eyes and visualize the home I described above? Walk
around the house. Stand on the porch off the master bedroom and see
the mountain. Look down at the garden full of tomatoes, green beans and
cucumbers. And off to the right is the other garden full of a sunflower,
carnations and roses. Can you see it? So can your subconscious mind.

6. By all means, make sure your goal is high enough.

Shoot for the moon; if you miss you'll still be in the stars. If I never make
it, everything I do to reach that goal will make me a better person. If I

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make it, but don't go as high as planned, then I am still among the top in
my field in the nation. Shoot for the moon!

7. This is the most important, write down your goals.

Writing down your goals creates the roadmap to your success. Although
just the act of writing them down can set the process in motion, it is also
extremely important to review your goals frequently. Remember, the
more focused you are on your goals the more likely you are to accomplish
them.

Sometimes we realize we have to revise a goal as circumstances and

other goals change. If you need to change a goal do not consider it a
failure, consider it a victory as you had the insight to realize something
was different.

So your goals are written down. Now what?

First of all, unless someone is critical to helping you achieve your goal(s),
do not freely share your goals with others. The negative attitude from
friends, family and neighbours can drag you down quickly. It's very
important that your self-talk (the thoughts in your head) are positive.

Reviewing your goals daily is a crucial part of your success and must
become part of your routine. Each morning when you wake up read your
list of goals that are written in the positive. Visualize the completed goal,
see the new home, smell the leather seats in your new car, feel the cold
hard cash in your hands. Then each night, right before you go to bed,
repeat the process. This process will start both your subconscious and
conscious mind on working towards the goal. This will also begin to
replace any of the negative self-talk you may have and replace it with
positive self-talk.

Every time you make a decision during the day, ask yourself this
question, "Does it take me closer to, or further from my goal." If the
answer is "closer to," then you've made the right decision. If the answer
is "further from," well, you know what to do. Remember the ‘straight line
law – the shortest distance between two pints’.

If you follow this process everyday you will be on your way to achieving
unlimited success in every aspect of your life.

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5c. LEARNING FROM FEEDBACK

We are all inundated with feedback continually. We could all be learning

from everything that happens. Most of us only acknowledge delivered
feedback and fail to discover the abundance of other useful feedback. We
don't see what we're missing or how to grow, change and learn from our
latest experience.

Delivered feedback comes in two flavors: objective and subjective. We

cannot argue with objective feedback. Formal systems of evaluation are
based on this. All the statistics in professional sports, scores in computer
games and grades on college transcripts -- deliver objective feedback.

We can argue with subjective feedback. It's not based on fact. It's subject
to interpretation and frames of reference. Informal learning and
relationships are based on delivering this feedback. Referees, juries and
critics all make judgment calls about our conduct. We get told we are out
of bounds, guilty or breaking the rules. We also receive word that we are
exceptional, valuable or likeable. It depends on who says it, how they see
us, which mood they are in at the moment and what we've done to our
relationship with them.

Discovered feedback also includes objective and subjective varieties. We

cannot argue with what happens, what works or how things turn out.
Outcomes provide objective feedback if we discover the results that
occur, the effect of our actions or the fallout from our efforts. We fail to
discover objective feedback if we rely on fragile or fortressed cognitive
structures. We then talk ourselves out of considering the bigger picture
and long range consequences.

When we discover subjective feedback, we are interpreting our selective

perceptions. We are aware we are framing the evidence, skewing the data
and biasing the diagnosis. We discover how we are focusing, spinning or
storying the evidence. We use a post modern outlook and appreciate the
subjective nature of everything we perceive. We adopt a worldview where
"we reap what we sow" and "what goes around, comes around". We look
at the outside world as a reflection of our inner psychological condition.
We discover countless ways to grow from adversity, change our outlooks
and learn from the evidence of our state of mind.

Discovery systems support the use of discovered feedback. Where a

delivery system is saying: "now hear this!", a discovery system asks: "how
is this useful?". Without being told what to think, learners think for
themselves and serve as the best judge of their experience. They learn

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from how they are treated, framed and allowed to deviate the norm. They
discover feedback in everything.

5d. PERSONAL RESPONSIBILITY

Responsibility is not a burden, it's a blessing

When we take responsibility, we admit we are the ones responsible for

the choices we make. We, not other people or events, are responsible for
the way we think and feel. It is our life, and we are in charge of it. We are
free to enjoy it or disdain it. No, we are not responsible for all that
happens to us, but we are responsible for how we think, feel, and act
when they happen.

Why did God make us so fleet-footed? Some would argue it is to allow us

to dodge, duck, and run from responsibility! Why would anyone want to
do that? Well, many people associate responsibility with duty and
obligations, which, in turn, are thought of as burdens. But personal
responsibility is not a burden, it is a blessing. This becomes clear when
we understand that personal responsibility is nothing other than the
freedom to create our own lives. Yes, responsibility is equated with
freedom and power. Once we awaken to this fact, we become liberated
and empowered. Once we become aware of this truth, we shed our victim
mentality and gain the power to transform ourselves.

Let's get personal and talk about you for a moment. Are you perfectly
happy with the way things are at this time, or do you wish things were
better? Chances are you are neither perfectly happy nor completely
unhappy, for most of us lie somewhere between both extremes. However,
if you're not totally satisfied, what are you doing about it? If you continue
to do the same things, everything will remain the same. Nothing will
change until you do.

If a change in your life is warranted, why not begin by recognizing that

your present situation is not the result of your genes, parents, education,
job, luck, timing, health, or environment. Rather, it is the choices you
have made and the actions you have taken that have brought you where
you are today. Change your choices and actions and you will change the
results that follow. This understanding is the first step in personal
transformation. The second step is the action that follows, for as Dietrich
Bonhoffer (1906 ~ 1945) wrote, "Action springs not from thought, but
from a readiness for responsibility."

What action should we take? Start by taking a personal inventory. That

is, examine your life to learn the extent that you are either already taking
responsibility or evading it. This is best done by asking yourself a series

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of questions and writing the answers for later study. Here's what I mean.
Do you ever say to yourself or others any of the following? Life is so
unfair. I'm unlucky. No one wants to help me. It's not my fault that I'm
the way I am. Life is an endless struggle; there are too many burdens to
bear. Terrible things are always happening to me. My parents (spouse,
friends, co-workers, boss, health, the weather, or the political situation)
make me depressed (angry or frustrated). I feel overwhelmed and
helpless. Some people get all the breaks; I'm just unfortunate. I'm sick
and tired of being sick and tired. There's nothing I can do; it's just the
way the world is. I'm unsuccessful because of the prejudice (age
discrimination, sexism, jealousy, hatred, stupidity) of others. I would be
successful if it weren't for the idiots holding me back. Self-help books,
positive thinking, or the advice of others can't help me.

Can you see where I'm going with this? All the above thoughts express
the mindset of a self made victim. Instead of taking personal
responsibility and taking charge of one's life, that kind of thinking is
used to blame others or life for one's own failures. That type of thinking
is dead-end thinking; and self-defeating thinking. With these thoughts in
mind, and tongue in cheek, Ambrose Bierce (1842 ~ 1914) defines
responsibility in his "The Devil's Dictionary" as follows:

"RESPONSIBILITY, n. A detachable burden easily shifted to the shoulders

of God, Fate, Fortune, Luck or one's neighbor. In the days of astrology it
was customary to unload it upon a star."

Yes, it's easy to shift the responsibility and blame others or events. But
what good is that? All it does is keep us in a rut. We cannot make any
real progress until we admit to ourselves, "Only I can hold myself back.
Only I can stand in my own way. Only I can help myself. Only I can take
personal responsibility. Only I can transform myself from a victim of
circumstances to a reasoning, choice-making, action oriented person.
Only I can make the decision to stop acting like a victim and start taking
charge of my life."

Let me end by saying, all this emphasis on making the right choices and
accepting personal responsibility is for your benefit only. That is, use
these ideas to improve yourself, but not to judge others. You can never
enter the mind, heart, and body of another, so you are unaware of the
reasons for their failures. Not everyone is as ready as you are to change.
That's why it is written in the Talmud (Rabbinical writings of the 1 ~ 6
centuries AD), "A man may not be responsible for his actions in an hour
of tribulation and pain." You have enough problems already; don't add to
them by endlessly complaining, for that only entrenches them deeper
into your life. Rather, look for the good, appreciate it, and take
responsibility by making the most of what you have. Happiness is a

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choice, just like misery is; we all have the responsibility to make the right
choices. We owe it to ourselves to do so.

5e. DEVELOPING CONFIDENCE AND SELF RELIANCE IN A CHILD

It’s so easy. We all do it from time to time. We love them so much. We

just want to protect our children from anything that might harm them.
So we reach out our arm and gather them in. We do their chores for
them so they can enjoy a few more moments of play. But these choices
carry consequences. When you shelter your children or do what they can
do for themselves they become overly dependent. Worse, they don’t
challenge themselves or develop self-confidence.

Learning self-reliance and independence comes early. But it doesn’t

happen without your help. You need to support your children by
teaching them to be independent. In this article you’ll learn how to
encourage your children’s independence; how and when to let them do
things on their own; what to do when they need help; and what to do
when things go wrong.

Let’s Meet Julie

Julie is six years old. She’s shy and indecisive and doesn’t have any close
friends. Julie’s teacher, Mrs. Sterling, often keeps Julie company at
school and gives her extra help. Mrs. Sterling doesn’t mind. Julie is such
a quiet and well-behaved girl.

Then, at a parent-teacher meeting, Mrs. Sterling mentions Julie’s

behavior to her parents. She wasn’t always that way, they say. Julie was
a wild baby and got into everything. At the time, Julie’s parents were
concerned for her safety so they kept Julie in her playpen, put up gates
throughout the house and even put her on a leash at times. For her
safety, they added.

Eventually, Julie grew out of her wanderlust and became a polite little
girl. But maybe we overdid it, say Julie’s parents. Now she isn’t
interested in doing anything on her own. She just waits for us to advise
her.

Mrs. Sterling suggests that they give Julie a light chore—something she
could easily accomplish. Maybe that will help Julie feel like she’s in
charge and already has permission to do a good job on her own. Julie’s
parents agree.

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In a few weeks, Mrs. Sterling notices that Julie is seeking less help and
spending longer periods with the other children. Then one day in a burst
of pride Julie tells Mrs. Sterling the proper way to empty a dishwasher
and put away the dishes. Mrs. Sterling thanks Julie for the lesson and
smiles as Julie runs off to play with her new friends.

Now let’s take a look at how you can teach your children independence,
self-reliance and the joy of confidence.

Encouragement
Parents need to support their children in their natural quest for
independence. A great way to do this is with chores. Most kids are in a
hurry to grow up; helping out around the house teaches them
responsibilities and shows them they can make a difference through
their actions.

But be careful. Your child can sense if you’re concerned about their
abilities. Let them know that it’s a big help to have them involved and
give them jobs they can accomplish. If you’re apprehensive about their
safety or performance give them another job.

Allowance
Children who are allowed to do things on their own develop self-reliance.
Early on, leave your child alone for small periods. They’ll learn that
they’re safe and can do things without you in the same room. Later,
friendships teach them to cope in different situations. Chores, hobbies
and homework develop independence, too. Here are some methods to
help your children succeed on their own.
• Model self-reliance in your own behavior.
• Show them step-by-step how a project is done.
• Make sure they know the goal so they go in the right direction.
• Make the project fun! Time it. Do it backwards. Dance. Make a game
out of it.
• Set timelines for a project, but let your children complete it their own
way.
• Let them do the job in parts so they succeed each time they work on it.
• Let them fail. Let your children try things their way and learn from
failure.
• When they forget to do a chore, show them the consequences, but don’t
do the job for them.

Support
Knowing when to step in and help your child with a project can be
challenging. Here are some guidelines, but observe how your children
solve problems and support them appropriately.

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• Step in to support your children when their approach is unsafe,
unhealthy or disruptive.
• In general, make yourself available to help, but encourage them to work
through any snags they hit on their own.
• If you do step in, emphasize what’s working and then suggest ways to
do the job better, or consider doing the job together.
• If the job is done well enough… leave well enough alone. Perfection is
not the aim. Unless the work needs to be corrected for very good reasons
congratulate your children on their efforts. And praise them often.

Learn from Mistakes

Part of self-reliance means learning from mistakes. Here are some tips to
help your children keep going when things go wrong.
• Tell them everyone makes mistakes.
• Tell them it’s the effort that counts.
• Tell them you love them no matter what.
• Point out what they did right.
• Ask them how they could do it differently.
• Encourage them to do the job using their new approach.

Protecting your children from harm is vital, but it’s also important to
allow them to explore, to engage in life and even to fail. That’s how they
learn self-reliance. In the long run, if children aren’t taught
independence they lack self-confidence—and that’s very difficult to learn
later on.

Encourage your children’s independence. Teach them how to do things

on their own and support them as they learn. Perhaps one of the greatest
gifts you can teach your children is to learn from their mistakes and to
fill their lives with the confidence and self-reliance necessary to succeed.

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 TOPIC 7:

KNOW THE MOTIVATIONAL PATTERN OF ENTREPRENEURS

INTRODUCTION:
Motivation and the role it plays in the conduct of entrepreneurship and
how it positively affect the entrepreneur is very significant to the study
and practice of entrepreneurship. In this section efforts is made to
highlight the assessment of these motivational patterns in relation to the
process of entrepreneurial practice. Students should be able to explain
motivation, objectives, merits and demerits as well as carryout analysis
on the motive strength from Thematic Appreciation Test (TAT) scores.
Also they should be able to explain the spirit of Achievement Motivation
Test, (AMT)

SPECIFIC LEARNING OUTCOMES:

1. Define motivation;
2. List the objectives of motivation;
3. Identify barriers to motivation and achievement;
4. Explain Thematic Appreciation Test (TAT) scores;
5. Explain how to analyze motive strength from TAT score;
6. Explain the spirit of Achievement Motivation Test (AMT).

CONTENT:

1. MOTIVATION

Motivation starts with the desire to be free, to be free from dependency

on others, freedom to live the lifestyle we dream of, freedom to explore
our ideas. Total freedom is not possible or desirable, but the struggle to
achieve that ideal is the basis for motivation.

Motivation is built on three basic elements:

1. Motivation starts with a need, vision, dream or desire to achieve the

seemingly impossible. Creativity is associated with ideas, projects
and goals, which can be considered a path to freedom.

2. Developing a love-to-learn lifestyle, become involved with risky

ventures and continually seek new opportunities. Success is the
result of learning what works and what does not work.

3. Develop the ability to overcome barriers and to bounce back from

discouragement or failure. Achievers learn to tolerate the agony of
failure. In any worthwhile endeavor, barriers and failure will be
there. Bouncing back requires creative thinking as it is a learning

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 process. In addition, bouncing back requires starting again at
square one.

A loss of any one part and motivation is on the rocks. For example:

• If you like to be creative and love to learn but cannot face up to

failure, you will not go back and try again. Persistence is
associated with bouncing back.

• If you have a unique idea but don’t like taking risks, idea is all you
will ever have.

• There must be something in your life that turns you on. You can
start by analyzing the lifestyle of your dreams. Remember, money
is not a goal; it is a reward for achieving a goal.

7 Rules of Motivation

1 Set a major goal, but follow a path. The path has mini goals that go
in many directions. When you learn to succeed at mini goals, you
will be motivated to challenge grand goals.

2 Finish what you start. A half finished project is of no use to anyone.

Quitting is a habit. Develop the habit of finishing self-motivated
projects.

3 Socialize with others of similar interest. Mutual support is

motivating. We will develop the attitudes of our five best friends. If
they are losers, we will be a loser. If they are winners, we will be a
winner. To be a cowboy we must associate with cowboys.

4 Learn how to learn. Dependency on others for knowledge supports

the habit of procrastination. Man has the ability to learn without
instructors. In fact, when we learn the art of self-education we will
find, if not create, opportunity to find success beyond our wildest
dreams.

5 Harmonize natural talent with interest that motivates. Natural

talent creates motivation, motivation creates persistence and
persistence gets the job done.

6 Increase knowledge on subjects that inspires. The more we know

about a subject, the more we want to learn about it. A self-
propelled upward spiral develops.

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 7 Take risk. Failure and bouncing back are elements of motivation.
Failure is a learning tool. No one has ever succeeded at anything
worthwhile without a string of failures.

Creating a Vision

When you begin the process of strategic planning, visioning comes first.
When visioning the change, ask yourself, "What is our preferred future?"
and be sure to:

 Draw on the beliefs, mission, and environment of the organization.

 Describe what you want to see in the future.
 Be specific to each organization.
 Be positive and inspiring.
 Do not assume that the system will have the same framework as it
does today.
 Be open to dramatic modifications to current organization,
methodology, teaching techniques, facilities, etc.

Key Components for Your Vision

Incorporate Your Beliefs

Your vision must be encompassed by your beliefs. i.e.

 Your beliefs must meet your organizational goals as well as

community goals.
 Your beliefs are a statement of your values.
 Your beliefs are a public/visible declaration of your expected
outcomes.
 Your beliefs must be precise and practical.
 Your beliefs will guide the actions of all involved.
 Your beliefs reflect the knowledge, philosophy, and actions of all.
 Your beliefs are a key component of strategic planning.

Create a Mission Statement

Once you have clarified your beliefs, build on them to define your
mission statement which is a statement of purpose and function.

 Your mission statement draws on your belief statements.

 Your mission statement must be future oriented and portray your
organization as it will be, as if it already exists.
 Your mission statement must focus on one common purpose.
 Your mission statement must be specific to the organization, not
generic.

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  Your mission statement must be a short statement, not more than
one or two sentences.

Here is an example mission statement: "By providing quality education,

we empower individuals to become caring, competent, responsible
citizens who value education as a lifelong process."

Benefits of Visioning
The process and outcomes of visioning may seem vague and superfluous.
The long-term benefits are substantial, however. Visioning:

 Breaks you out of boundary thinking.

 Provides continuity and avoids the stutter effect of planning fits
and starts.
 Identifies direction and purpose.
 Alerts stakeholders to needed change.
 Promotes interest and commitment.
 Promotes laser-like focus.
 Encourages openness to unique and creative solutions.
 Encourages and builds confidence.
 Builds loyalty through involvement (ownership).
 Results in efficiency and productivity.

Vision Killers
As you engage in the visioning process, be alert to the following vision
killers:

 Tradition
 Fear of ridicule
 Stereotypes of people, conditions, roles and governing councils
 Complacency of some stakeholders
 Fatigued leaders
 Short-term thinking
 "Nay-Sayers"

Exercise in Creating a Vision

Take the time to assimilate this information, use the following example to
exercise your planning techniques:

It is five years from today’s date and you have, marvelously enough,
created your most desirable district. Now it is your job, as a team, to
describe it - as if you were able to see it, realistically around you.

Respond to the following questions:

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  How has the job market changed?
 What have we done to prepare our students for success in this
world?
 What do we (including teachers, parents, and local government
administrators) spend most of our time doing?
 How are our meetings structured?

Intrinsic motivation is when people engage in an activity, without obvious

external incentives, such as a hobby.
Intrinsic motivation has been studied by educational psychologists and
found it to be associated with high achievement and enjoyment.
There is currently no universal theory to explain the origin or elements of
intrinsic motivation, thus it is thought that people are more likely to be
intrinsically motivated if they:
 Attribute their results to internal factors that they can control (e.g.
the amount of effort they put in an act),
 Believe they can be effective agents in reaching desired goals (i.e.
the results are not determined by dumb luck),
 Are interested in mastering a task, rather than mindless acts to
achieve good results.
Note that the idea of reward for achievement is absent; since rewards are
an extrinsic factor.

In knowledge-sharing communities and organizations, people often cite

altruistic reasons for their participation, including contributing to a
common good, a moral obligation to the group, mentorship or 'giving
back'. In work environments, money may provide a more powerful
extrinsic factor than the intrinsic motivation provided by an enjoyable
workplace.

The most obvious form of motivation is coercion, where the avoidance of

pain or other negative consequences has an immediate effect. While
coercion is considered morally reprehensible in many philosophies, it is
widely practiced on lots of emploees by their employers. Critics of modern
capitalism charge that without social safety networks, non-living wages
are inevitable. Successful coercion sometimes can take priority over
other types of motivation. Self-coercion is rarely substantially negative
(typically only negative in the sense that it avoids a positive, such as
forgoing an expensive dinner or a period of relaxation), however it is
interesting in that it illustrates how lower levels of motivation may be
sometimes tweaked to satisfy higher ones.

The self-control of motivation is increasingly understood as a subset of

emotional intelligence; a person may be highly intelligent according to a

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more conservative definition, as measured by standard intelligence tests,
yet unmotivated to dedicate this intelligence to certain tasks.
Drives and desires can be described as a deficiency or need that activates
behaviour that is aimed at a goal or an incentive. These are thought to
originate within the individual and may not require external stimuli to
encourage the behaviour. Basic drives could be sparked by deficiencies
such as hunger, which motivates a person to seek food; whereas more
subtle drives might be the desire for praise and approval, which
motivates a person to behave in a manner pleasing to others.
By contrast, the role of extrinsic rewards and stimuli can be seen in the
example of training animals by giving them treats when they perform a
trick correctly. The treat motivates the animals to perform the trick
consistently, even later when the treat is removed from the process.

Drive Reduction Theories

There are a number of drive theories. The Drive Reduction Theory grows
out of the concept that we have certain biological needs, such as hunger.
As time passes the strength of the drive increases as it is not satisfied.
Then as we satisfy that drive by fulfilling its desire, such as eating, the
drive's strength is reduced. It is based on the theories of Freud and the
idea of feedback control systems, such as a thermostat.
There are several problems, however, that leave the validity of the Drive
Reduction Theory open for debate. The first problem is that it does not
explain how Secondary Reinforcers reduce drive. For example, money
and the desire to succeed in the business sense does not satisfy any
biological need. Secondly, if the drive reduction theory held true we
would not be able to explain how a hungry human being can prepare a
meal without eating the food before they finished cooking it.

Achievement Theory
David McClelland’s achievement motivation theory envisages that a
person has need for three things but people differ in degree in which the
various needs influence their behavior: Need for achievement, Need for
power, and Need for affiliation.
Entrepreneurs are usually highly motivated individuals who seem to
enjoy work regardless of what they do. Most people are able to
accomplish goals which are similar to what they want to do. However,
entrepreneurs are able to motivate themselves to produce high output in
the work they have to do.

Thematic Appreciation Test (TAT) scores;

The Thematic Appreciation Test (TAT) is similar to the Rorschach inkblot
test. Subjects are shown pictures and asked to tell a story based on what
they see. Both these projective assessment tools elicit important
information about underlying psychological fears and needs. The TAT

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was developed in 1935 by Morgan and Murray. Ironically, it was initially
used in a study of normal personalities done at Harvard Psychological
Clinic.

The test comprises 31 cards. One card is blank and the other thirty
include blurred but emotionally powerful (or even disturbing)
photographs and drawings. Originally, Murray came up with only 20
cards which he divided to three groups: B (to be shown to Boys Only), G
(Girls Only) and M-or-F (both sexes).

The cards expound on universal themes. Card 2, for instance, depicts a

country scene. A man is toiling in the background, tilling the field; a
woman partly obscures him, carrying books; an old woman stands idly
by and watches them both. Card 3BM is dominated by a couch against
which is propped a little boy, his head resting on his right arm, a revolver
by his side, on the floor.

Card 6GF again features a sofa. A young woman occupies it. Her
attention is riveted by a pipe-smoking older man who is talking to her.
She is looking back at him over her shoulder, so we don't have a clear
view of her face. Another generic young woman appears in card 12F. But
this time, she is juxtaposed against a mildly menacing, grimacing old
woman, whose head is covered with a shawl. Men and boys seem to be
permanently stressed and dysphoric in the TAT. Card 13MF, for
instance, shows a young lad, his lowered head buried in his arm. A
woman is bedridden across the room.

With the advent of objective tests, such as the MMPI and the MCMI,
projective tests such as the TAT have lost their clout and luster. Today,
the TAT is administered infrequently. Modern examiners use 20 cards or
less and select them according to their "intuition" as to the patient's
problem areas. In other words, the diagnostician first decides what may
be wrong with the patient and only then chooses which cards will be
shown in the test! Administered this way, the TAT tends to become a self-
fulfilling prophecy and of little diagnostic value.

The patient's reactions (in the form of brief narratives) are recorded by
the tester verbatim. Some examiners prompt the patient to describe the
aftermath or outcomes of the stories, but this is a controversial practice.
The TAT is scored and interpreted simultaneously. Murray suggested to
identify the hero of each narrative (the figure representing the patient);
the inner states and needs of the patient, derived from his or her choices
of activities or gratifications; what Murray calls the "press", the hero's
environment which imposes constraints on the hero's needs and
operations; and the thema, or the motivations developed by the hero in
response to all of the above.

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Clearly, the TAT is open to almost any interpretative system which
emphasizes inner states, motivations, and needs. Indeed, many schools
of psychology have their own TAT exegetic schemes. Thus, the TAT may
be teaching us more about psychology and psychologists than it does
about their patients!

How to analyze motive strength from TAT score;

Thematic Apperception Test is quite similar to Story Sequence Analysis.
The subject is shown a series of 31 ambiguous photographs and asked to
write a story for each photograph describing what happened, how the
photographed people feel, and how things will end. The story is analyzed
for recurrent motivational themes that are thought to reflect the
motivation of the author (McClelland and Alschuler, 1971; Rossini and
Moretti, 1997).

Survey
Most Achievement Motivation surveys are constructed in the same
manner. They ask a number of questions designed to explore certain
behavioral characteristics. The surveys have related groups (or
components) of questions that are scattered throughout the
questionnaire. The questions may ask the respondents their likes and
dislikes of various topics. Other questions may ask respondents to rate
themselves or their abilities. By having related groups of questions, the
survey can ask the respondent the same question in different
manners and compare how the student answered each time. In this
manner the consistency of the respondents answers can be checked. The
answers to the questions are presented as a Likert – type scale. Typically,
there are between five and seven answers the respondent can select
(Chiu, 1997; Jagacinski & Duda, 2001; Sagie, 1993; Wagner, Powers &
Irwin, 1985).

Summary

Some individuals have a need to achieve. They want to be successful at

whatever they attempt. They have a high attitude toward success and
work hard to ensure they are successful. If they are intrinsically
motivated, they participate in the activity for the sake of learning that
activity or improving their ability at that activity. If they are extrinsically
motivated, they participate in the activity with the expectation of reward
(Eskeles-Gottfried, Fleming, and Gottfried, 1998).
Other individuals have a fear of failure. They will avoid failure at all
costs. Usually the individual will not even attempt the task. In this
manner they save face with their pears. If the task is not attempted, it
cannot be failed (Atkinson and Feather, 1966; Atkinson, 1974).

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The probability of success also has bearing on an individual’s
achievement motivation. An individual may not need to put forth much
effort to accomplish an easy task. A difficult task may be thought to take
too much effort. Tasks of moderate difficulty seem to be preferred by
individuals with high achievement motivation. An individual’s perception
of the outcome also affects their achievement motivation. If the outcome
of a task is not viewed as unimportant, little or no effort may be made in
attempting the task.

Achievement Motivation on the Job: Key Factor in Professional Success.

The professional motivation test (Achievement motivation test – AMT) is a

written test enabling the differentiated measurement of professional
achievement motivation, one of the most important aspects of
professional success. With this instrument, a diagnostic profile is drawn
up dealing with 17 different aspects of achievement motivation, including
confidence, perseverance and goal orientation. An evaluation in the form
of a standardized total value is also performed.

The diagnostic results of the test can be used for personnel selection
purposes as well as for identifying individual training needs as part of
personnel development. AMT can be successfully applied where a large
number of applicants are concerned, for example for the selection of
managerial staff, industrial workers, and for the founders of new
businesses.

AMT has been developed in many years. It consists of 51 career-related

questions with excellent statistical values guaranteeing psychometric
quality. The level of acceptance among participants is high. And, taking
just 10 minutes (approx.) to complete, AMT is very economical in terms
of time requirement. The test can be carried out either in paper-and-
pencil format, or on the internet.

As well the graphic presentation of results in a net chart, also a text

feedback especially for individual assessment is available. AMT has a
broad norm basis of people from a wide cross-section of professions.
Ongoing renorming processes and the creation of customer-specific
norms enable broader application to meet individual needs.

AMT-B is a target group-specific further development of AMT for

measuring the achievement motivation of trainees and professionally
inexperienced employees. The item format and the content are
specifically intended for applicant groups which have no previous work
experience. Brief descriptions of situations illustrated by photographs
make it easier for applicants to work through the test, creating an
appealing and readily accepted test. Validation work has shown that

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using AMT-B significantly increases the predictive validity of classical
test batteries for trainees. Norms specific to trainees in industrial and
commercial branches are available.

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 NATIONAL BOARD FOR TECHNICAL EDUCATION
ENTREPRENEURSHIP EDUCATION

The Simple Science of Entrepreneurship

The 5 Laws:
1. The Law of Straight Lines
2. The Law of ‘Clear End Vision’
3. The Law of Focused Attention
4. The Law of Focused Energy
5. The Inescapability of Action/Reaction

The Scientific Formula for Success:

 See your Target Clearly
 Keep it in Your Sight
 Hit it (Until You Make the Desired Mark)

The 3 Sources of Power:

1. Time
2. Energy
3. Money
All sources can be increased exponentially through Leverage

The 2 Most Important Decisions of an Entrepreneur:

1. Will I choose to take action that brings me closer to or further
away from my desired Target?
2. Will I make decisions that strengthen my Power or weaken
my Power?

Begin and end each day by reflecting on the day’s activities. Then
you will get twice as much done, increase your Power, and hit your
targets faster. Always take the straight path to your Target. Always
make the Strengthening Decision.

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 DAILY TARGET SETTING

TO DO LIST

DO IT DELIBERATE
DUMP IT
(Focused Attention) (Mental Box)

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 NATIONAL BOARD FOR TECHNICAL EDUCATION

ENTREPRENEURSHIP EDUCATION
Motivational Quotes for your meditation:

"Energy is the essence of life. Every day you decide how you're going
to use it by knowing what you want and what it takes to reach that
goal, and by maintaining focus."

"What this power is I cannot say; all I know is that it exists and it
becomes available only when a man is in that state of mind in which
he knows exactly what he wants and is fully determined not to quit
until he finds it."

"The most successful men in the end are those whose success is the
result of steady accretion... It is the man who carefully advances step
by step, with his mind becoming wider and wider - and progressively
better able to grasp any theme or situation - persevering in what he
knows to be practical, and concentrating his thought upon it, who is
bound to succeed in the greatest degree."

"The achievement of one goal should be the starting point of

another."

“Sloth makes all things difficult; but industry, all things easy. He that
rises late must trot all day, and shall scarce overtake his business at
night; while laziness travels so slowly that poverty soon overtakes
him.”

“Dost thou love life? Then do not squander time; for that is the stuff
life is made of.”

"Energy and persistence conquer all things."

"We are what we repeatedly do. Excellence then, is not an act, but a
habit."

"It concerns us to know the purposes we seek in life, for then, like
archers aiming at a definite mark, we shall be more likely to attain
what we want."

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"First, have a definite, clear practical ideal; a goal, an objective.
Second, have the necessary means to achieve your ends: wisdom,
money, materials, and methods. Third, adjust all your means to that
end."

"For what is the best choice, for each individual is the highest it is
possible for him to achieve."

“Men often become what they believe themselves to be. If I believe I

cannot do something, it makes me incapable of doing it. But when I
believe I can, then I acquire the ability to do it even if I didn’t have it
in the beginning.”

“The difference between what we do and what we are capable of doing

would suffice to solve most of the world’s problems.”

“You may never know what result comes of your action, but if you do
nothing there will be no result.”

“The victory of success is half won when one gains the habit of setting
goals and achieving them. Even the most tedious chore will become
endurable as you parade through each day convinced that every task,
no matter how menial or boring, brings you closer to fulfilling your
dreams.”

"It is those who concentrate on but one thing at a time who advance
in this world. The great man or woman is the one who never steps
outside his or her specialty or foolishly dissipates his or her
individuality."

“Action will destroy your procrastination.”

“A day merely survived is no cause for celebration. You are not here to
fritter away your precious hours when you have the ability to
accomplish so much by making a slight change in your routine.”

"It is always your next move."

"Create a definite plan for carrying out your desire and begin at once,
whether you're ready or not, to put this plan into action."

"Effort only fully releases its reward after a person refuses to quit."

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"I do not know anyone who has got to the top without hard work.
That is the recipe. It will not always get you to the top, but should get
you pretty near."

"Look at a day when you are supremely satisfied at the end. It's not a
day when you lounge around doing nothing; it's when you've had
everything to do and you've done it."

"What is success? I think it is a mixture of having a flair for the thing

that you are doing; knowing that it is not enough, that you have got to
have hard work and a certain sense of purpose."

"Success follows doing what you want to do. There is no other way to
be successful."

"If you expect nothing, you're apt to be surprised. You'll get it."

"The best vision is insight."

"Thinking well to be wise: planning well, wiser: doing well wisest and
best of all."

"Diamonds are nothing more than chunks of coal that stuck to their
jobs."

"Work is love made visible. And if you cannot work with love but only
with distaste, it is better that you should leave your work and sit at
the gate of the temple and take alms of those who work with joy."

"March on. Do not tarry. To go forward is to move toward perfection.

March on, and fear not the thorns, or the sharp stones on life's path."

"I prefer to be a dreamer among the humblest, with visions to be

realized, than lord among those without dreams and desires."

"To understand the heart and mind of a person, look not at what he
has already achieved, but at what he aspires to."

"The only thing worse than being blind is having sight but no vision"

"I long to accomplish a great and noble task, but it is my chief duty to
accomplish small tasks as if they were great and noble."

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"A little knowledge that acts is worth infinitely more than much
knowledge that is idle."

"One can never consent to creep when one feels an impulse to soar."

"I cannot do everything, but still I can do something; and because I

cannot do everything, I will not refuse to do something that I can do."

"Do not think of today's failures, but of the success that may come
tomorrow. You have set yourself a difficult task, but you will succeed
if you persevere; and you will find a joy in overcoming obstacles."

"Before everything else, getting ready is the secret of success."

"It has been my observation that most people get ahead during the
time that others waste."

"There is joy in work. There is no happiness except in the realization

that we have accomplished something. "

"Failure is simply the opportunity to begin again, this time more

intelligently."

"I am looking for a lot of men who have an infinite capacity to not
know what can't be done."

"If you can dream it, you can do it."

"The way to get started is to quit talking and begin doing."

Here's one last quote from Walt Disney: "All our dreams can come
true, if we have the courage to pursue them."

"He who conquers others is strong; He who conquers himself is

mighty."

"At the center of your being you have the answer; you know who you
are and you know what you want."

"Great acts are made up of small deeds."

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"If you do not change direction, you may end up where you are
heading."

Here's one last quote from Lao Tzu: "A journey of a thousand miles
must begin with a single step."

"There are three classes of people: those who see, those who
see when they are shown, those who do not see."

It had long since come to my attention that people of accomplishment

rarely sat back and let things happen to them. They went out and
happened to things."

"Iron rusts from disuse; stagnant water loses its purity and in cold
weather becomes frozen; even so does inaction sap the vigor of the
mind."

"Divide each difficulty into as many parts as is feasible and necessary

to resolve it."

"It is easy to hate and it is difficult to love. This is how the whole
scheme of things works. All good things are difficult to achieve; and
bad things are very easy to get."

"The difference between a successful person and others is not a lack

of strength, not a lack of knowledge, but rather a lack of will."

"We would accomplish many more things if we did not think of them
as impossible."

"Our goals can only be reached through a vehicle of a plan, in which

we must fervently believe, and upon which we must vigorously act.
There is no other route to success."

Here's one last quote from Pablo Picasso: "Action is the foundational
key to all success."

"It is far more important to be able to hit the target than it is to haggle
over who makes a weapon or who pulls a trigger."

"In preparing for battle I have always found that plans are useless,
but planning is indispensable."

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"We succeed only as we identify in life, or in war, or in anything else,
a single overriding objective, and make all other considerations bend
to that one objective."

Here's one last quote from Dwight Eisenhower:

"Pessimism never won any battle; No one can defeat us unless we first
defeat ourselves."

"Nothing is more difficult, and therefore more precious, than to be

able to decide."

"The truest wisdom is a resolute determination."

"Take time to deliberate, but when the time for action has arrived,
stop thinking and go in."

"If you want a thing done well, do it yourself."

"Victory belongs to the most persevering."

"Your goals are the road maps that guide you and show you what is
possible for your life."

"You must remain focused on your journey to greatness."

Here's one last quote from Oprah Winfrey: "Every day brings a
chance for you to draw in a breath, kick off your shoes, and dance. "

"My philosophy is that not only are you responsible for your life, but
doing the best at this moment puts you in the best place for the next
moment."

"Do the one thing you think you cannot do. Fail at it. Try again. Do
better the second time. The only people who never tumble are those
who never mount the high wire."

"The big secret in life is that there is no big secret. Whatever your
goal, you can get there if you're willing to work."

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Here's one last quote from Les Brown: "We must look for ways to be
an active force in our own lives. We must take charge of our own
destinies, design a life of substance and truly begin to live our
dreams."

"I advise you to say your dream is possible and then overcome all
inconveniences, ignore all the hassles and take a running leap
through the hoop, even if it is in flames."

"Wanting something is not enough. You must hunger for it. Your
motivation must be absolutely compelling in order to overcome the
obstacles that will invariably come your way."

“The more I want to get something done, the less I call it work.”

"You are never given a dream without also being given the power to
make it true. You may have to work for it, however."

“Since all the world is but a story, it were well for thee to buy the more
enduring story, rather than the story that is less enduring.” St. Colum
Cille (St. Columba of Scotland)

“In order to win, you must expect to win.”

“In order to live free and happily you must sacrifice boredom. It is not
always an easy sacrifice.” Richard Bach.

"People do not lack strength; they lack will."

"He, who every morning plans the transactions of the day, and follows
that plan, carries a thread that will guide him through a labyrinth of
the most busy life."

"A man is not idle because he is absorbed in thought. There is a

visible labor and there is an invisible labor."

"Perseverance, secret of all triumphs. "

"Have courage for the great sorrows of life and patience for the small
ones; and when you have laboriously accomplished your daily task, go
to sleep in peace." Victor Hugo, a French poet, playwright, and
novelist.

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"My attitude is that if you push me towards something that you think
is a weakness, then I will turn that perceived weakness into a
strength."

"Some people want it to happen, some wish it would happen, others

make it happen."

"I've always believed that if you put in the work, the results will come.
I don't do things half-heartedly. Because I know if I do, then I can
expect half-hearted results."

"I've missed more than 9000 shots in my career. I've lost almost 300
games. I've failed over and over and over again in my life. And that is
why I succeed." Michael Jordan

"Our greatest glory is not in never failing, but in rising up every time
we fail."

"As long as a man stands in his own way, everything seems to be in

his way."

"Write it on your heart that every day is the best day in the year."

"Even the knowledge of my own fallibility cannot keep me from

making mistakes. Only when I fall do I get up again."

"Great things are done by a series of small things brought together."

"If you hear a voice within you say "you cannot paint," then by all
means paint, and that voice will be silenced."

"The fishermen know that the sea is dangerous and the storm terrible,
but they have never found these dangers sufficient reason for
remaining ashore."

"Whoever I am, or whatever I am doing, some kind of excellence is

within my reach."

"It's a job that's never started that takes the longest to finish. "

"True happiness involves the full use of one's power and talents."

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“In my experience, there is no such thing as luck.”

"Either do, or do not, there is no try."

You didn't create your body, nor are you able to control the body's
functions. An intelligence greater than the human mind is at
work. It is the same intelligence that sustains all of nature. You
cannot get any closer to that intelligence than by being aware of your
own inner energy field -- by feeling the aliveness, the animating
presence within the body. - Tolle

"You have to find something that you love enough to be able to take
risks, jump over the hurdles and break through the brick walls that
are always going to be placed in front of you. If you don't have that
kind of feeling for what it is you're doing, you'll stop at the first giant
hurdle."

"Working hard is very important. You're not going to get anywhere

without working extremely hard."

"You simply have to put one foot in front of the other and keep going.
Put blinders on and plow right ahead."

"One must work and dare, if one really wants to live."

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