I

MTRDUCTI
ONTOENTREPRENEURSHI
PEDUCATI
ON

I
ntr
oduct
ion
Ent
repr
eneur
shi
pist
hecapaci
tyandwi
l
li
ngnesst
odev
elop,
organi
zeand
manageabusi
nessv
ent
ureal
ongwi
thanyofi
tsr
isksi
nor
dert
omakeapr
ofi
t.
Themostobv
iousexampl
eofent
repr
eneur
shi
pist
hest
art
ingofnew
busi
nesses.or

Ent
repr
eneur
shi
pcanal
sobet
akent
omeant
hecapaci
tyorabi
l
ityof
i
dent
if
yingbusi
nessoppor
tuni
ti
esf
rom t
heenv
ironment
,gat
her
ing/
organi
zi
ng
t
henecessar
yresour
cesandusi
ngt
hem t
ost
artupanent
erpr
iseandor
gani
ze
pr
oduct
ionofgoodsandser
vices,
andmar
ket
ingt
hem,
cov
eri
ngr
iskswi
than
ai
m ofmaki
ngpr
ofi
ts.

Soci
aleconomi
cor
igi
nofent
repr
eneur
shi
p

Theemer
genceofent
repr
eneur
ial
act
ivi
tyi
nanypl
aceandatanyt
imei
s
det
ermi
nedbyanumberofsoci
o-economi
c,psy
chol
ogi
cal
andot
herf
act
ors.
Thedi
ff
erentenv
ironment
alf
act
orssuchasf
ami
l
ybackgr
ound,
rel
i
gious
backgr
ound,
educat
ionandt
echni
cal
know-
how,
occupat
ional
thebackgr
ound;
amongot
her
sfact
orsdoi
nfl
uencet
hedev
elopmentofent
repr
eneur
shi
p.
For
mal
educat
ionf
ori
nst
ance,
hel
psonet
odev
elopent
repr
eneur
ial
ski
l
lsl
i
ke
r
esour
cef
ulness,
ini
ti
ati
veandcr
eat
ivi
ty.St
ruct
ureandeconomi
cst
atusoft
he
f
ami
l
yar
eal
soi
mpor
tantbecauset
hesedet
ermi
net
hesuppor
twhi
chan
ent
repr
eneur
shi
pget
sfr
om hi
sfami
l
y.Member
shi
pofar
esour
cef
ulf
ami
l
yor
communi
tyf
aci
l
itat
esent
repr
eneur
shi
p.

Ther
efor
e,i
mpr
ovedeconomi
cst
atusoft
hef
ami
l
yhasaposi
ti
vei
mpacton
ent
repr
eneur
s’act
ivi
ti
es.Thef
inanci
alsoundnessoft
hepastgener
ati
onal
so
cr
eat
esasenseofsecur
it
yandt
her
ebyencour
agest
hespr
eadof
ent
repr
eneur
shi
pact
ivi
ti
es.

Ent
repr
eneur
shi
peducat
ionr
efer
stoast
udyt
hati
sconcer
nedwi
thpr
ovi
ding
l
ear
ningst
udent
swi
thbasi
cknowl
edgeandski
l
lsofcr
eat
ingandoper
ati
ng
t
hei
rownbusi
nessorent
repr
eneur
ssuccessf
ull
yusi
ngt
heav
ail
abl
eresour
ces
t
odev
elopt
hemsel
vesandt
hecount
ryatl
arge

Whywest udyent repreneur shipeducat ion

1.Itenabl esstudent st ol earnhowt ouset heav ail
abl er esourcei nthe
economymor eef fici
ent l
y .
2.Thest udyhelpst hey out htodev el
opposi ti
veatti
t udeandcul turetowar ds
wor k,business, self -
empl oy ment,creativenesset c.
3.Ithelpst oteachi ndi vidual skil
lsofstartingandr unni ngsmal land
medi um ent erpri
sesandcar ryonanyot hercommer cialbusiness.
4.Ithelpsi nequippi ngy oungent repreneur swithknowl edgeandski ll
sof
scanni ngtheenv i
r onment ,identi
fyi
ngr elevantbusi nessoppor tunit
iest hat
canbeexpl oitedf ort hebenef i
tofindividualandt hesoci etyasawhol e.
5.Ithelpst oteachent r
epr eneurskill
ssuchassour cemobi l
izati
on,
mar ket i
ng,leadershi pt hatar eusedf orgr owthofbusi nessandt he
economyatl arge.
6.Ithelpst oinstil
lint othest udent sself-
conf i
dence, self-
awar enesswhi ch
enabl esthem per cei vet heirneedsandmakeanal y sisinrelati
ont ot heir
future.

Whoisanentr
epreneur
?
Var
iouswr
it
ershavedefi
nedanent
repr
eneurdi
ff
erent
lyamongt
hesei
ncl
ude:

I
. Accor dingt oJosephSchumpet er ,anent r
epr eneuri sani nnov at or
, one
whousesnewi nnov ationst ocr eat eanewcommer cialproductandt o
createanewdemandf orthenewpr oduct .
II
. Anent r
epr eneurisahumanagentneededt omobi zecapi tal,addv aluet o
nat ur
al resour ces( land, wat er,f orest)topr oducet henecessar ygoods
andser vices, cr
eat eempl oy mentanddev elopt hemeansbywhi cht rade
iscar ri
edon.
III
. Accor dingt oPeterDr uka( 1964)anent repreneuri sonewhol ooksf or
change, respondsandexpl oitsoppor tunit
iesusi ngi nnovationasat ool
thatturnsasour cei nt oresour ce.
IV. Accor dingt oRichar dCani ti
lli
on( 1979)descr ibesanent repr eneurasan
ent er
prisingi ndividual whobui ldscapi t
althroughr isksandi nitiati
ve
innov ati
ons.
Ther oleofent repreneur si ndev el opment
Ingrowingeconomi eslikeUgandaent r
epr eneursar econt ri
butinggr eatlyt othe
economi cdevel opmentgi vent hef actt hatt hecount ryi semphasi zingt he
pri
vatesect orasanengi nef orgr owt ht her ol
esincl ude:
(i
) Cr eati
onofempl oy mentoppor tuni ti
es,entrepr eneur sestabl ishbusi ness
ent er
prisest hatneedpeopl etowor kinthedi ff erentdepar tment se. g.
account ant s,manager set c.
(i
i) Cr eati
onofweal th,t hisisdonet hr oughmobi lizingcapi t
al andt urning
 capital i
ntobusi nesspr ov i
desanaccumul ativeresour cebasewhi ch
helpst hecount rytoaddv aluet othegr owt hdomest icproducts.
(
ii
i) Theypr ovidel i
nkagebet weensect orsi.e.ent repreneur sestabl
ish
businesse. g.industri
est hatuser awmat erial
sf r
om t heagr i
cultur
al
sectorandatt hesamet i
me, agri
cultural sectorpr ovidemar ketfor
i
ndust rialout put.
(
iv) Theyar easour ceofgov ernmentt axrev enuee. g.t heypayincomet ax,
corpor atet ax,amongot herswhi chhelpt hecount r
yt oreali
zether evenue
requiredf ordev elopment .
(
v) Pr ovisionofi nfr
astructures, beforeanyv ent ureisest abli
shed,therei s
needf orgoodr oads,telecommuni cati
onser v
icesandut i
li
ti
eset c.these
areest ablishedbyent repreneur swhi chhel ptoser v eevensur r
oundi ng
communi t
ies.

(
vi) Pr omot esBal ancedRegi onal Dev elopment :Ent repr eneur shel pt o
remov er egi onal dispar iti
est hr oughset ti
ngupofi ndust ri
esi nless
dev elopedandbackwar dar eas.Thegr owt hofi ndust riesandbusi nessi n
thesear easl eadt oal argenumberofpubl i
cbenef it
sl iker oadt ranspor t,
heal th, educat ion, entertainment ,et c.
(
vii
) I ncr easi ngGr ossNat ional Pr oductandPerCapi taI ncome:
Ent repr eneur sar eal way sont hel ookoutf oroppor tunities.Theyexpl ore
andexpl oi toppor tuniti
esandencour ageef f ectiver esour cemobi l
izat i
on
ofcapi tal andski ll,bri
ngi nnewpr oduct sandser v i
cesanddev elop
mar ket sf orgr owt hoft heeconomywhi chl eadt oeconomi cgr owt h
(
vii
i
)Pr omot esCount r
y '
sExpor tTr ade: Ent repreneur shel pi npr omot i
nga
count ry'sexpor t-trade.Theypr oducegoodsandser v i
cesonl ar gescal e
fort hepur poseofear ni nghugeamountoff oreignexchangef r
om expor t
i
nor dert ocombatt hei mpor tduesr equi rement .
(
ix) Impr ov ementi nt heSt andar dofLi ving: Entrepr eneur spl ayakeyr ol ein
i
ncr easi ngt hest andar dofl i
v i
ngoft hepeopl ebyadopt i
ngl at est
i
nnov at ionsi nt hepr oduct ionofwi dev arietyofgoodsandser v i
cesi n
l
ar gescal et hatt ooatal owercost .Thi senabl est hepeopl et obeav ail
ed
wi thbet terqual itygoodsatl owerpr i
ceswhi chr esul tsi nthei mpr ov ement
oft hei rst andar dofl i
v i
ng.
(
x) Communi tyDev elopment :Economi cdev elopmentdoesn’ tal way s
transl atei nt ocommuni tydev elopment .Communi tydev elopmentr equires
i
nf rast ruct ur ef oreducat i
onandt raini ng,heal thcar e, andot herpubl i
c
ser v i
ces.Forex ampl e, therei sneedf orhi ghl yeducat edandski ll
ed
wor ker si nacommuni tyt oat tractnewbusi nesses.I ft herear e
educat ional inst ituti
ons, t
echni cal trai ningschool sandi nter nshi p
oppor tuni ties, thatwi l
l helpbui ldthepool ofeducat edandski ll
edwor kers.
(
xi) Eff ect iveUt i
li
zat i
onofResour ces: Ent repreneur shipi sal laboutput tingto
bet teruset her esour ceswhi char econsi der edt obeofl owv aluewi than
aim ofear ni ngi ncome.Ent repr eneur scomeupwi thi deasofhowt ouse
whatot her smayconsi derwast e.Thi si mpr ov est heeconomyofacount r
y
 thr
oughtaxesandcr eat
ionofj
obswhi
chi
mpr
ovest
hest
andar
dofl
i
ving
ofthebenefi
ciar
ies
Fact or saf fect ingent r
epr eneur ship
Factorswhi chaf fectent repreneur shipar easdi scussedbel ow;
1.Economi cf act ors: theeconomi cfactorsl i
kedemandandsuppl ywi l
l
deter mi net hesi zeoft hebusi nesst obesetup.Besi dest heheal t
hoft he
economywi ll
al sodet ermi net hev ariousmeansoff inanci ngt hebusi ness.
2.Financi al fact or s: thecapi t
al requi redbyt heent repr eneur st ost ar
ta
businessv ent uredependsont heav ail
abi l
ityoff inanci al instituti
onsl ike
banksbesi desot hersour cesoff undingandt hepol i
ci esgui dingtheir
oper ations.
3.Legal f
act or s:thepr ocessesofst art
inganent erpr isei nv olvesf ulfi
ll
mentof
variousl egal requi rement s.Ther efor
el egal factor spl ayasi gni f
icantr olein
asf arast heest ablishmentofanent erprisei sconcer ned.
4.Pol i
tical fact or s; variousgov ernmentpol i
ciespr ev aili
ngi nt hesoci etywi llin
onewayoranot heraf f
ectt heset t
ingupofabusi nessv ent ure.Ther efore,an
entrepr eneurneedst oputi nt oconsi der ationt hepol itical fact or
sbef or e
settingupanent erpr i
se.
5.Instituti
onal fact ors: t
heinst i
tut i
onal fr
amewor kbot ht hegov ernmentand
non-gov ernment al affectsent repreneur shi pact iviti
esbot hdi r
ectlyand
indirectly .Inst itutional fact orscanbeasour ceofencour agementand
guidancet oent repr eneur s.
Charact eri
st icsofent repr eneur s
Li
keanyot herpr of essi on, ent repr eneurshav ecer tai nf eat ureswhi ch
di
stinguisht hem f rom anyot heri ndi vi
dual int hesoci etyt hesei ncl
ude;

1.Theysetcl eargoals.Ev erypassionat eent r

epreneurhascl eargoal s/vi
si
on.
Byset tingcleargoalsi tkeepst hem f ocusedev enwhent hingsgett ough.
Theysetshor tterm, mi dt
erm andl ongt er
m goal swhi chpr ovideroomsf or
planningoft heact i
vit
iesoft heday s,weeks, mont hswi thunmat chedfocus,
knowi ngexact lywhathe/ shewant st oachi evewi thoutbei ngder ail
edalong
theway .
2.Theypl antheirdayinadv ance; unst oppableent r
epr eneur spl antheirdayi n
adv ancet oav oi
dwast i
ngt i
meanddoi nguncoor dinatedact i
v i
ti
ese.g.
meet ings.
3.Entrepr eneursareuniquei nnat ure.Thati st osayt heypossescer tai
nt r
aits
andbehav iourwhichar erar
ei notherpeopl e.Traitslikedi scipli
ne,passion
anddedi cati
ont otheirbusinessf orm par toftheirbehav iourwhi chis
unmat ched.
4.Entrepr eneurstakecal cul
atedr i
sks.Si nceev erybusi nessv entureinvolves
ri
sks, asuccessf ulentrepreneurunder takesbusi nesswi thmoder ate
calculableandmanageabl eriskst opr eventormi nimizel ossesi nbusiness.
5.Theyknowt heirst
rengt handweaknesses; successf ul entrepreneursare
honestwi ththemselves.Theyknowt heirownst rengt hsandweaknesses
 andt aket hem i ntoaccountwi t
hev er ybusi nessdeci sion.
6.Theyhi reat eam ofpl ay ers; successf ul ent repr eneur shi r
et hebest
empl oy eest owor kwi th.Theyf ocusont hosewhof itinwhat ev ergapst hat
hav ebeeni dent ifi
edt ocr eat et hef or mi dabl et eam t hati sneededf or
success.
7.Theyar econst ant l
yl ear ners; successf ul ent repr eneur sknowt hatt heydon’ t
knowi tal l.Becauseoft hi s,theynev erst opl ear ning.Theynev ergetsobusy
tost opi nv estingi nt hemsel v es, andt heknowl edget hatbenef i
tst hei r
businesses.Keepi ngup- to-dat ei sv eryessent ial ifonei st obesuccessf ul i
n
business.
8.Theyar eal way sl ooki ngf oroppor tuni t
ies; successf ul entr epr eneur sdonot
restont hei rcur rentsuccess.Theyr eal izet hatl i
fechangesqui ckl yandt hat
businessmov esataf ast erpace.Oneneedst oal way sbeont hel ookoutf or
thenextoppor t
uni ty.
9.Theyev aluat et hei ract ionsandpr ior iti
eseachday .Successf ul
entrepr eneur sknowt hatwi thev er yday ,theyar ebui l
dingt hei rf utur e.When
your ev iewy ouraccompl i
shmentatt heendofeachday ,y ouwi ll beabl et o
celebr atet hesuccess, aswel l asaddr esst heshor tfallsiti sagr eatpr act i
ce
tobei ngwi thr ightaway .
10. Sy stemat icpl anni ngandmoni t or i
ng, thisi st heabi litytodev el oppl ans
thatar er eusedt omoni torandev aluat eper for manceoft hebusi ness,
wor ker sandcust omer s`sat i
sf act ion
11. Theyar eaccount abl e, t
hisi nv olv epr operbookkeepi ngwher eev er y
shil
lingr ecei vedandspenti spr oper lyaccount edf orsoast omeett heset
profitabi li
tyst andar ds.
12. Theyal way sexpl oreoppor tuni ties; t
hi si st heabi l
i
tyt hatenabl esan
entrepr eneurseeandi dent ifi
esnewbusi nessoppor tuni ti
es, ev aluat et hem
andconv ertt hem i nt oachi ev abl egoal s.
13. Theyar eal way scommi ttedt ot hei rwor k–t hi sist heabi l
ityt oaccess
fi
nanci al responsi biliti
esf orcompl et ingt hej obf orcust omer si .e.an
entrepr eneurcombi nesbot hef for tsandwor ker st ogetwor kdonewi thina
statedper iodoft i
me.
14. Theyar ePer sistentt owor k; thi si st hequal i
tywhi chenabl esent repr eneur
todev elopdet er minat iont odot hej obwel latanycosti nt ermsofper sonal
sacr i
fice.
15. Theyal way sDemandf oref fi
ci encyandqual ity, t
hisi st heabi lityf oran
entrepr eneurt odot hingst hatar emor eexcel l
entori mpr ov ingt he
perfor mancebyst arv i
ngt odot hi ngsf ast er, bet terandcheapl yt hant he
compet i
t ors.
16. Theyar eSel f
-conf idence, thisr ef er st ot heabi l
itytohav east rongbel i
efin
one’ssel fandt heabi litytocompl et edi ff i
cul ttasksormeetachal lengeat
whatcost .
17. Theyar ei nnov ative, thisi st heabi lityofanent repreneurt ot argett he
unknownanddot hingsi nanewandbet terwaysoast ochanget heol d
i
deasi nt onewi deas.
18. Theyar eprofitoriented, t
hisveryclearthattheincomeear nedhelpsthem
runtheaf f
airsoft hebusi nessandatsamet imebeabl epayoffexpenses
suchasi nterestonl oans
19. Theysett heirownst andards;thisi
si nregardtoper f
ormanceoft he
business,wor kers.Thisensur esthatt heyareablet odothi
ngsbetterand
fast
erwi t
houtwast ingr esources.
20. Theyalway shav et heabi li
tytocopewi thfail
ure;thi
sisbecauseall
businessv enturescont aindisappointment sandf ai
lur
esaswel las
successes.Theyr ecogni zethefail
uresandl earnf r
om them
Rewardsofbei nganent r
epr eneur
1.Selfact ual
izati
onorpersonalfulfi
l
lment
2.Feelingoff reedom andindependence
3.Providingjobsandbenef it
stoot herssuchasi
nvest
ors,
suppl
i
ers
4.Creat i
ngeconomi cval
ueorpr oduct
5.Gettingf i
nancialsecur
it
y
6.Wor kingwi thfl
exibl
eschedules

Costsofbei nganent r
epreneur
1.Wor kingforlonghour s
2.St ress,thisisbecauseofconst antl
ythinkingaboutbusi
ness
3.Needsmor eenergy
4.Sacr ifi
cesot herimportantaspectsofli
fe
5.Li mitedsoci all
if
e
6.Li mitedt i
mewi ththefami l
yandf r
iends
7.Hav i
ngmor eneedsf orinvest
mentt hanliquidcashtocat
erfordai
l
y
expenses
8.Reducel if
espan, becauseoft oomuchwor k
9.Hav i
ngmor eresponsibil
it
iesi
nsoci et
y

Isanentrepreneuramanager
?
Tobeabl etounderst
andwhetheranent
repr
eneurisamanagerornot
,iti
svery
i
mpor t
antifoneunderst
andstherol
e,t
hefunct
ionsofamanagerandthatofan
entr
epreneur.

Whoisamanager ?
Amanagerisapersonwhodi r
ectsandcont
rol
stheaffai
rsofthebusinessso
astoensur
ethatthebusiness`settar
get
sareachiev
ed.Therefor
eamanager
maynotbeanentrepreneurasmuchasent r
epreneur
saremanager s.Manager
car
ri
esoutthefol
l
owingf uncti
ons.

FUNCTIONSOFAMANAGER
1.Pl
anning,Thisi
nvol
vessetti
ngofgoalsandobject
ivesanddet
ermini
ngt
he
waysinwhichtheyaretobeachieved.
2.Organi
zing,Thi
sinv
olvestheident
if
icat
ionofwhatacti
vi
ti
esaret
obedone,
 groupi ngoft heseact i
viti
esi ntodepar t
mentanddel egati
ngt hem t o
parti
cul ari ndividuals.
3.Staffing, Thi sreferst ot hepr ocessr ecruit
ing, t
raininganddev el
oping
empl oy eeswhoact ual l
ycar ryoutt het asksoft hebusi ness.
4.Coor dinat ion,Manager sal way scoor di
natedi ff
er entact i
viti
eswi thi
nan
enterpr i
set oensur et hatev eryact ivitygetst henecessar ysuppor tas
requiredandper f
or medasexpect ed.
5.Leadi ng, Thi sinvolv esgui dingt heempl oyeesaboutpr ocedur esandwor k
met hodsi nt heent er prise.
6.Cont rollingandmai ntaining, Ensur ingt hatev eryact ivi
tyinanent erpri
seis
doneasexpect edsoast opr oducedesi redr esul t
saspert het imeset .
7.Mot ivation, Thisr efer st ot hepr ocessofencour agingempl oyeest ogivein
thei
rbestt owar dst heachi ev ement soft hedesi redt argets.
8.Communi cat i
on, Thi sinv olvespassi ngov erinfor mat i
onf rom oneper sonto
anothersoast ohav eamov i
ngor gani zati
on.
9.Budget ing, Thisref erst ot hepr ocessofaccount i
ngf orresour cesreceived
andest imat ingwhati sneededi nt hebusi nessatagi venper i
odoft ime.
10. Ev al uation, Thisi nv olvesmaki nganal ysisoft heper formanceoft he
businessagai nstt hesett argets.

FUNCTI ONOFANENTREPRENEUR
Theroleofanent r
epr eneurinmanagementi ncludesthefol
lowing:
1.Ini
ti
at i
ngandident if
y i
ngbusinessoppor tuniti
es,Thi
sissomet hi
ngof
moneyv al
uethatanent r
epreneurexploit
sf orthebenefi
tofhimselfandof
thesociety.
2.Decisionmaking, Thisisthepr ocessofchoosi ngbetweenthebest
alt
ernativeamongot heralt
ernati
vesav ai
lablesoastoachiev et
hebusiness
setgoalsandobj ectives.

3.Providingl eader ship, He/Shedi rectot her swi t

hr espectt ocommi tmentand
dedicationt ot hewor k.Thi sencour agesot herempl oy eestoper for mthe
activi
ti
esoft hebusi nessaspert hest andar ds.
4.Informat ionpr ocessi ng, Anent r
epr eneurasamanagerconst antlymoni tor
s
theenv ironment , collectsandst udiest heenv ir
onmentconcer ningt he
enterpriseandout si
deenv i
ronmentt hatmayaf fectt heent erpr i
se.
5.He/ Shei sanet wor kof fi
cer,He/ Shehast oobt ainanet workofout si
de
contactst hroughr egul arcommuni cat ionandcooper at i
on.Thi shel psto
assesst hecompet i
tors`busi ness, soci alchanges, changesi ngov ernment
ruleandr egul ati
onset c.thisisachi ev edt hroughat tendi ngmeet i
ng,
professional conf erence, readi ngjour nal s,internetet c.
6.He/Shei sar olement or ,anent repr eneurment orsot herindividualsashe
takesonbusi nesswi thal otofconf idence.
7.Her esol vesconf l
icts,Anent repreneurnor mal l
ysol v esdi ff
erencescaused
byot herbusi nesswhencompet i
ngf orcust omer sandamongempl oyees
duet omi sunder st andings, differentbehav i
our sandf ai l
uretoaccompl i
sha
 giv
ent asks.
8.Resour ceallocati
on,Anent r
epr
eneuralsomakesdecisi
onstoall
ocatethe
businessr esourcese.g.f
indsequi
pment ,
timeandmachiner
ytodiff
erent
acti
vit
ies.
9.Negot i
ations,she/hesomet i
mesnegotiatescontr
act
swithsuppl
ier
sin
ter
msofpr i
ces,wit
hmaj orcust
omer,vendorsetc.
10. Ther eforeanent r
epreneurpl
aysbothfuncti
ons.

TYPESOFENTREPRENEURS
Anumberofschol
arshav
eident
if
iedmanydi
ff
erentt
ypesofent
repr
eneur
s.
Themaj
oronesi
ncl
ude;
 Lar
gescal
eent
repr
eneur
s:Thesear
eent
repr
eneur
swhoi
nit
iat
eandoper
ate
busi
nesses/
ent
erpr
isesonl
argescal
ebesi
despossessi
ngt
hef
inanci
al
abi
l
ityandnecessar
yski
l
lst
oini
ti
ateandi
ntr
oducenewt
echni
cal
changes.
 Smal
lscal
eent
repr
eneur
s:Theseent
repr
eneur
soper
atesmal
lbusi
nessand
l
acknecessar
ytal
ent
sorski
l
lsandr
esour
cest
oini
ti
atel
argescal
e
pr
oduct
ionandappl
i
cat
ionofappr
opr
iat
etechnol
ogi
cal
changes.

I
nnov
ati
veent
repr
eneur
s:Thesear
ecr
eat
iveent
repr
eneur
swhoi
ntr
oduce
newpr
oduct
sonmar
ket
sandnewpr
oduct
iont
echni
quest
hrough
assembl
i
ngandsy
nthesi
zi
ngt
heav
ail
abl
einf
ormat
ionandexper
iment
ing
newcombi
nat
ionoft
hef
act
orsofpr
oduct
ion.Suchent
repr
eneur
sal
way
s
seeandexpl
oitoppor
tuni
ti
esf
ori
ntr
oduci
ngsomet
hingnewornewmar
ket
s.
Suchent
repr
eneur
sar
ecommoni
ndev
elopedcount
ri
es.

I
nit
iat
iveoradopt
iveent
repr
eneur
s:Theseent
repr
eneur
sinst
eadof
i
nnov
ati
ngchangesf
ort
hemsel
ves,
theysi
mpl
ycopyandadoptsuccessf
ul
i
nnov
ati
onsf
rom ot
herpeopl
e/i
nnov
ator
s.Sucht
ypesofent
repr
eneur
sar
e
commonl
yfoundi
ndev
elopi
ngcount
ri
eswher
etheyi
mit
iat
etechnol
ogyand
t
echni
queswhi
chhav
eal
readybeencr
eat
edi
nthedev
elopedcount
ri
es.

 Oppor
tuni
sti
cent
repr
eneur
s:Thesear
eent
repr
eneur
swhoconst
ant
lyl
ook
f
orpr
ofi
tabl
ebusi
nessoppor
tuni
ti
esandexpl
oitasmanyoft
hem ast
hei
r
r
esour
cescanal
l
ow,
usi
ngt
hei
rwi
deexper
ience,
knowl
edgeandski
l
ls
 acqui
redt
hrougheducat
ionandexposur
e.

 Vi
sionar
yent
repr
eneur
s:Thesear
eent
repr
eneur
swhoconst
ant
lyl
ookf
or
pr
ofi
tabl
ebusi
nessoppor
tuni
ti
esbutconcent
rat
eononemaj
orandmost
pr
ofi
tabl
eoppor
tuni
tyusi
ngt
hei
rwi
deexper
ience,
knowl
edgeandski
l
ls
acqui
redt
hrougheducat
ionandexposur
e.

 Cr
aftmanent
repr
eneur
s:Thesear
eent
repr
eneur
swhosebusi
nessact
ivi
ti
es
ar
eli
mit
edt
othei
rnar
rowexper
ienceandknowl
edgeacqui
redt
hrough
nar
roweducat
ional
backgr
ound,
exper
ienceandexposur
e.Theyusual
l
yli
mit
t
hei
rbusi
nesst
oasmal
lsi
zewhi
cht
heycanmanage.

 Fabi
anent
repr
eneur
s:Thesear
echar
act
eri
zedbygr
eatcaut
ionand
skept
ici
sm i
nexper
iment
ingchangei
nthei
rent
erpr
ises.Theyi
nit
iat
eonl
y
wheni
tbecomesper
fect
lycl
eart
hatf
ail
uret
odosowoul
dresul
tinal
ossof
t
her
elat
iveposi
ti
oni
ntheent
erpr
ises.

 Pr
ivat
eent
repr
eneur
:Apr
ivat
eent
repr
eneuri
sonewhoasani
ndi
vi
dual
set
s
upabusi
nessent
erpr
ise.He/
shei
sthesol
eowneroft
heent
erpr
iseand
bear
stheent
ir
eri
ski
nvol
vedi
nit
.

 St
ate/
publ
i
cent
repr
eneur
:Whent
hebusi
nessv
ent
urei
sunder
takenbyt
he
st
ateorgov
ernment
.Iti
scal
l
edst
ateent
repr
eneur
.

 Joi
ntent
repr
eneur
s:Whent
hegov
ernmentandpr
ivat
eent
repr
eneur
sjoi
ntl
y
r
unabusi
nessent
erpr
ise,
iti
scal
l
edj
ointent
repr
eneur
s.

profi
tsasar ewardtoanentrepreneur
Anentrepreneurisrewardedbyprofit
sorlosestoappr
eci
atehi
m orherf
or
havi
ngt akenther i
sk.
Aprofi
ti nbusinesster
mr ef
erstothediff
erencebet
weenthesal
esandthe
costofsales.

Typesofprofi
ts
(i
) Netpr ofit
,Thisr
eferst
othenetearningst
oanentrepr
eneuraf
teral
l
operati
ngexpenseshavebeenmet .
(i
i) Normalpr of
it
s,Theseareear
ningsforanent
repr
eneurwhichi
sjust
 enoughtocaterf
ortheexpensesandnotcapableofat
tract
ingot
her
entr
epreneurt
ojoi
nthebusinessort
heindustr
y.

THEROLEOFPROFI TSTOANENTREPRENEUR
1.Iti
sasour ceofgov ernmentt axr evenuei .
e.entrepreneur spayt axessuchas
corporat etax,companyt axet c.togov er nment.
2.Iti
sar ewar dtoanent r
epr eneurf orr i
sksanduncer t
aintiesi .e.thet ime
takenwhi l
ewai t
ingf orthebusi nessact ivi
ti
estoy iel
di ncome.
3.It’
susedasani ndicatorf orresour ceal locati
oni.e.anent r
epr eneural locates
mor eresour cestoact ivi
tieswher ehe/ shedr ivesal otofpr of i
ts.
4.Theyar eusedbyanent repreneurt oexpandori mpr oveont heexi sting
enterprisei.e.t
heyar eusedt opur chasei t
emst hatar eneededi nt he
business.
5.Iti
sasour ceofr ewar dtoot herfact orsofpr oductioni nanent erprisee.g.
outofpr of
itsanent repreneuri sabl et opaywagesandsal ariespayi nterest
oncapi taletc.
6.Iti
susedt omot i
vatewor kersi nanent erpri
se.Itiswher et heent repr eneur
drivesincomet oincreasewor kers’salar i
es,i
mpr ov etheirwel fareof
assistanceet c.

ENTREPRENEUR, INTRAPRENEURANDANENTERPRI SINGPERSON

Int
raprenuer
Isapersonwhof ocusesoni nnov ati
ons, cr
eativ
ityandt ransformsadr eam or
anideai ntoapr ofi
tabl
ev enturebyoper ati
ngwithintheexi sti
ngor ganizat
ion,
anIntr
apr enueri dentif
iesoppor tunit
ieswi t
hinanexi st
ingbusi ness.
CharacteristicsofanI nt r
aprenuer
 Hewor ksi nanexi stingbusiness.
 Hei shi redt omanaget hebusi ness.
 Hei dent if
iesnewpr oductsorser vicesoroppor tuni
tiesf orexi
stingbusiness.
 Hei scr eativeanduseshi sabi l
it
yt omar ketorproduceapr oduct .
 Heor ganizesandcont rol
sr esourcest oensureapr of i
tfortheexi st
ing
business.
 Hepr efersbenef it
sofanexi sti
ngbusi nesssuchasasal aryandot her
availabler esources.

I
ntrapr
eneur sar edifferentfrom entr
epreneurbecausei tistheInt
rapreneur
s
whogai nexper ience,knowl edgeandwi sdom bywor kinginabusi nessand
henceusing, theknowl edgeacquiredtostartpersonalbusiness.
Anenterprisingper son
Anenterprisingper soni ssomeonewhot akesoni magi nati
veandr i
skyproj
ect
s.
Heisambi tiousandener geti
c.
Character
isticsofent erpri
singpersons
1.Hekeepshi seyesopenandmi ndact i
ve.
2.Hei sconf identenought otakeonanyr iskyventure.
3.Hei sdisciplinedenought oseizeopportunit
iesthatpresentthemselvesas
 beingpr ofi
table.
4.Hehasposi tiveatt
it
udei nwhat everhedoes.
5.Heal waysseest hefuturenotpr esent.
6.Heal waysfindsawayt otakeadv antageofasituati
onanditisnotburdened
byit.
7.Theyar enotl azyi.
e.theydonotwai tforopport
uniti
estocomet othem
insteadtheygoaf t
ertheoppor tuniti
es.
8.Theyal waysf indawayt okeept hemselvesacti
velyworki
ngtowardstheir
goal s.
Thereforeoneneedscr eati
vit
yt oseewhati soutandt oshapeitt
oone’s
advantageandal sotolookatt hewor l
ddiffer
entl
yandt akedi
ff
erentapproach.

ENTREPRENEURI ALCULTURE
Entr
epr eneur ialcultureisdef inedasacul turet hatencour agest hewhol e
populat i
ont ot akeadv antageoft heabundantoppor tuni ti
esi ntheenv ir
onment .
Entr
epr eneur ialculturerelatest othev aluest heent repr eneurbr ingsintothe
business.I tisami xofnor ms, v al
uesandbel iefst hatar eshar edbybot ht he
entr
epr eneurandempl oyeesi nabusi nessv ent ure.
Cult
urei si mpor tantf oranent repreneur i
al v ent urebecausei tist hemeansby
whicht hev aluesofi tsfounder sar einsti
tut ional i
zed.I naddi ti
on, cult
ureser ves
tosocial i
zenewempl oyees, hel pst hem under standhowt heyshoul dtreatt he
customer s, howt heyshoul dt reateachot her ,howt heyshoul dacti nthei
rj obs
andhowt ogener all
yf i
tinandbesuccessf ulwi thint hebusi ness.
Benefitsofent repr eneurialcult ure
1.Ithel pst obui l
dcapaci tyforl iv
ingwi thuncer tainty
2.Ithel pst omakei ndivi
dualsgetf amili
ar izedwi thbusi nesst asks
3.It’
sabasi sfort hedev elopmentofent repr eneur ial popul ati
on
4.Itshel psi ndivi
dual soft hesoci etytogetmanager ialskill
s
5.Itpr ovidemanpowerneededf ordev elopmentofbusi nessesand
infrastruct ure

MAJORCOMPETENCI ESREQUI REDFORSUCCESSFULENTREPRENEURSHI P

Therear et
hreemaj orcompetenciesf orsuccessfulent
repreneur
shipwhi ch
i
nclude:
Abodyofknowl edge,
Asetofski ll
s, and
Aclusteroftraits
Abodyofknowl edge
Thisisdefi
nedasasetorbodyofi nformationstoredwhichmayber ecall
edat
anappr opr
iat
et ime.Knowledgei nbusi nessmaybemani festedi
ni nfor
mat i
on
onehav eont hev ari
ousaspectsoft hebusi nesse.g.pr
ocessesbusi ness
managementet c.
Knowledgeofbusi nesshoweverisnotenoughf orsuccessi nset
tingupand
runni
ngabusi ness.
Asetofski l
ls
Aski l
lisdef i
nedast heabi
li
tyt oappl yknowledgeinbusiness.theycanbe
dist
inguishedi nto.
(i
) Techni calskil
ls–thesei ncludeengineeri
ng, computer
,carpentry,
cat er
inget c.
(i
i) Manager ial–thesei
ncludemar keti
ng,ti
memanagement , fi
nancial
management ,or
gani
zation,planning,l
eadershipetc.
Inmanysoci eti
es,womenandmenwhoar edirectedtowardsacquiringonly
somet echnicalandmanagerial skil
lswhichareconsi der
edappr opri
atefort
hei
r
gender ,t
hisiswhymenandwomenof t
enconcent rateonspeci
f i
cbusiness
sectors.

TRAI TS
Traitsaredef i
nedast heaggr egateofpeculiarquali
ti
esorcharacterist
icst hat
const i
tutepersonal i
ndivi
dual i
ty.Trai
tstaket i
met odevelopandar enoteasi ly
changed.Ther efore;
I ti
smor eli
kel
yt hataper sonwhodoesnothav eallt
hethreecompet enci es
i
nhi sorherbusi nesswi llencounterdiffi
cult
iesinoperati
ngthev enture
successfull
y.
 Ani ndi v
idualwithonlyknowl edgeandski ll
sisunli
kelytosurvi
vef oreveni f
he/shemanagest ostartabusi ness.
 Aper sonwi t
honl yknowl edgeandper sonaltrai
tsmightfi
ndnot hingofv alue
towhi chtheseskillsmightbeappl i
edt o.
 Apot enti
alentrepreneurwi thskill
sandt rai
tsbutlacki
ngknowl edgemi ght
beabl etostartabusi nessbutmi ghtnotbesocompet it
ive.

ENTREPRENEURI ALSKILLS
(a)copy
ingwit
hchange
Changeistogi
veacompl et
elydi
ffer
entfor
m orappear
ancet
oanobj
ect
.
Changeinanorgani
zat
ionisnecessary
.

TYPESOFCHANGE
1.Dev elopment alchange
Thi soccur swhenacompanymakesani mpr
ov ementtothecurr
ent
busi nessst atus.
Char acteristi
csofdev elopment alchange
 Thecompanyi mprovesoni t
spr ocesses,methodsorperformance
standar ds.
 Dev elopmentappear sgr aduall
ywi thli
tt
lest
ress.
 Empl oyeesacqui r
enewski ll
sinor dertomanaget hedevelopments.
I tdoesnotmeannecessar ythecompanychangi ngi
tsgoalsbuttoimprove
ont hepr ocessessoast oachiev ethem.
2.Tr ansiti
onal change
Thi sisachangewher eprocessesar edismantledorrepl
acedwithnewones.
Her eacompanymaymer georcr eatenewpr oductsorservi
ceandt akeon
 thei mpl ement ati
onofnewt echnol ogy.
Char act eristicsofTr ansi t
ionalchange
 Theol dpr ocessesar ecompl et elyrepl acedwi thnewones.
 Ther ei sasi gnif i
cantshi ftint hebehav ioroft heempl oyees.
 Thecompanydev elopsnewpr oduct sandser v ices.
 Thecompanydest i
nyorf ut urei sunknown.
 Empl oy ee’sl evel ofengagementi nt henewpr ocedur esisi ncreased.
3.Transf or mat ionalchange
Thisi st hechanget hati nv olvesbot hdev elopment al andt ransi ti
onal change.
herecompani esar ef acedwi tht heemer gencyofdi f
fer entt echnol ogiesand
asi gnifi
cantchangei nsuppl yanddemand.
Char act eristicsoft ransf or mat i
onalchange
 Topmanagementi spr epar edt oi nv olveempl oy eesi nt ransition.
 Ther ei scompl etechangei nt hemet hodsofpr oduct ion.
 Ther ei sacompl et echangei nt hev ision, mi ssionandobj ecti
v esoft he
company .
 Compani esar ef acedwi thanexpect antcompet iti
onar i
si ngfrom exi sti
ng
compani es.
 Empl oy eesl ookf orani deal situat i
onf orplaci ngt hemsel v esinanew
changei .
e.under takingt r
aini ng.
I
mpor tanceofchange
1.I thelpst heent erpr i
set oadoptnewt echnol ogy ;thisi ncreasest heabi li
ty
oft heent er pri
set oincr easepr oduct ivi
tyandgr owt h.
2.I thelpst heor gani zationt or espondt ocust omer ’
sneeds, assat isfied
cust omer sar eabl etobr i
ngi nmor ei ncomeandatt hesamet i
mei t
cont ributest ot hegr owt hofanent er pr i
se.
3.I thelpsempl oy eest ogetnewski ll
sandknowl edgei .e.forchanget o
occurempl oy eesmustadopti tbyl ear ningnewski llsandexpl oit
ingnew
oppor tunitiest oexer cisecr eat ivit
yi nt henewway .
4.I tdet ermi nest hedi rect i
onoft heor gani zation.Thati stosaywi th
i
ncr easi ngdemandf orpr oduct sandser vi
ces; i
tmeant hatacompany
mustconsi derexpansi ont hatmi ghti nvolveaddi ti
onofnewst affandnew
facili
ties.
5.I tisusedt ochanget hest atusquoi .e.changei susedt odev elopnew
i
deasandi nnov ationst hatdi rect l
yimpactandbenef ittheent erpri
se.
6.Changehel pst heor gani zat i
ont oachi ev epr oduct ionofnewgoodsand
serv i
cese. g.t het ransf or mat i
onal changewhi chl eadst ocompl ete
dismant l
eoft heol dpr ocesseswhi char eineff i
ci entandr eplacedwi th
effi
ci entmoder nmet hodofpr oduct ion.
7.Changei susedasat ool tooutcompet eot herbusi nesse. g.changei nthe
productl ine, changei nt hemar ket i
ngst rategies, changei ncust omercar e
etc.

WHYSOMEPEOPLERESI
TCHANGE
I
tisr
aret hatchangei st otallyacceptedbyev eryoneinv ol vedpar t
lybecauseof
t
hefol
lowi ng:
1.Changebenef itssomepeopl ewhi l
eithur tsother s.Thati swhypeopl e
resistitespeci all
ywhenchangei sseenasdamagi ngi nsomeway .
2.Changesomet imesi sv eryexpensi vei .
e.manychangesr equirefi
nanci al
i
nv estmenti nt heshor trunori tmaybei nthebesti nterestoft hef ew.
3.Somepeopl er esistchangebecauset heyf eeltheyar enotcapabl eof
handl i
ngi t
,thismaybet heresul tofthegener al l
ackofsel f-
confidence.
4.Somepeopl er esistchangebecauset heyf eeltheyar enotsecur e,e. g.
whenasmal lbusi nessseemst ober unni ngsmoot hly, anychangemay
representat hreatofi nsecurity.
5.Somepeopl et akepr ideofbei ngst ubbor nandi ndependent ;hencet hey
resistchangenomat terhowconv i
ncingev idencei sinf avorofit.
6.Somei ndivi
dual sr esistchangebecauset heywer enotconsul tedbef ore;
hencet heylookati tasbei ngunder miningt heiref forts.
7.Iti
sbecausesomepeopl emayl oset hei rstatusinanor ganizati
on, e.g.a
changet hatinv ol
v esmer gi
ngdepar tmentmayber esist edbecausesome
peopl eloset heirst atusasbei ngheadsofdepar t
ment s.
8.Somepeopl er esistchangebecauset heyf eartaki ngonnew
responsi bi
li
ties, t
her eforetheyr esistittosat i
sfyt hei rper sonal i
nterest.

TECHNI QUESFORCOPYI NGWI THCHANGE

Bykeepi ngr easonsf orr esi stingchangewecanbet terunder standwhat
alt
itudescancount eractt hisr esi
stanceandhel pent repreneurscopewi th
changemor eef f
ectively .Todot hisaref ourbasi cdeci sionmaki ngtechniques
thatappl iedt ocopeupwi thchange.
1.Under st andingt hesi tuat i
on:Thi sist heabi l
itytot akeanal ysisforfi
nding
outt hef orcest hatr esi stchangeandsi tuati
onst hatcanbechangedi na
wayofi dent i
fyingapr obl em orsi t
uat i
on.
2.I dentifyingt hepr obl em:apr oblem i sdef i
nedasaneedt ot akesomeki ndof
acti
onnowt hatwi llhav eonewi thf ourdi f
ferentef fectsi
.e.
(i
) Pr ev entthenewmar ketareaf rom bei ngdest roy ed.
(i
i
) Reduci ngt henegat ivei mpactoft hemar ketar ea.
(i
i
i) Taki ngposi ti
veact i
ont odirectl
yencount erchal lengesi nnewmar ket
ar ea.
(i
v) Taket headv ant ageoft henewmar ketar ea.
3.Fi ndingt healternat ives:Thi siswher etheent repreneurt akesmor ethanone
acti
ont oencount erapr obl em befor etheact ion.
4.Sel ect i
ngt healternat iv esonceal lalternati
vehav ebeent riedoutt he
entrepr eneuri sabl et osel ectthebestone.

FACTORSTHATI NFLUENCEDECI SI
ONMAKI NG
1.Natur
eofsit
uati
on:Thesi
tuat
ionsthatr
equi
readecisiont
obetakenaf
fect
theki
ndofdeci
sionanent
repr
eneurcanmake, e.
g.br
eakdownofmachi
nes
mayrequi
requi
ckadecisi
oninordertomeetthecustomerdemand.
2.Availabili
tyofr esour ces:Whenr esour cesr equiredtoi mplementdeci si
on
arealreadyav ailabl ethepr ocessofdeci sionmaki ngi seasyandf asteras
opposedt owhent her esourcer equiredar enotav ail
able.
3.Env i
ronment alf act ors:Environmenti nwhi chthebusi nessi slocatedaff ect
s
anydeci siont obemadee. g.thedeci si ononwhet hert omanuf act
urepl asti
c
wil
l havet obet akenaf tertakingi ntoconsi derati
on,theimpacti twil
lhav eon
thenat uralenv ironmentandt hepeopl eoft hecommuni t
y.
4.Theexpect edbenef i
tsfrom adeci sion:Foranydeci si
ont obemadeand
i
mpl ement edbenef it
sar eassessedi .e.oncemor ebenef i
ts,areexpect ed,
quickdeci sioni st akent hant hatl ose.
5.Thecosti nvol ved:Ther eareambi t
ionst hatr equireheavyi nvestmentbef or
e
anybenef i
tisr ealizedi nsuchasi tuation,adeci sionisdelay ed.
6.Timepr essur e:Whent hedeci siont obet akenr equiresti
mel i
ttlet
ime, i
ti s
under t
akenf astert hanwhent hesi tuationi srelaxed,aslowandcar efulpace
i
sunder taken.
7.Thepastexper ience

CRITICALCHANGEAREAs:
Duet othechangi ngcust omer s`demand, changi ngeconomi csituations, and
behaviorofpeopl ef ol l
owi ngar eas, needchange:
1.Capi tal:Capi t albecomi ngv eryexpensi vetoobt ainov ert
imebymanysmal l
businesses.
2.Rawmat eri
als:Thi si sbecomi ngi ncreasinglyexpensi veanddi f
ficultto
obtainduet odi fficul t
iesi nt r
anspor tandmi suseoft heav ail
abler aw
mat erial samongot her s; theref ore,smal lfir
msr esor ttoholdingl arge
quant itiesofr awmat er ial
s.
3.Labour :Labouri sabundantt osmal lf
irmsbutski llsinbusi ness
managementi sl acki ng; hencemanyf i
rmsopt ingt ousecapi talthenl abour.
4.Technol ogy:ev eryf irmi sahav ingaf uturei ntechnol ogy ,
howev er,itis
becomi ngexpensi ve; thisi sduet ochangesi ntast eofcust omer s.
5.Mar ket s:mar ketsar ebasedonpr oductswhi chcust omer sdemand.Hence
therei sneedt ochangeent erprise`smar ketsascompet it
iongr owsst if
f.
6.Gov er nmentr egul ationsofbusi nessact i
vity:Duet otheincr easingdemand
foreconomi cdev elopmentandsel fsustenance, offi
cialsarest rugglingt o
keept hecount ryi nt heeconomi cpr ocess.
7.Behav iorofent repr eneur s, Wi ththechangi ngdemandf orgoodsand
servicesent repr eneur sar est rugglingtoof f
erqual itygoodsandser vi
ces
withemphasi zeofpr of essi onalism.
8.Lifest yles, consumer s`l i
fest y l
eischangi ngt owar dsqual it
yatl esscostas
manycopyt hewest ernwayofl iving,forci
ngent repreneur stogowest ern
thanl ocal .

FACTORSTHATBRI NGCHANGE
1.Effi
ciency:Thi
sistheabi
li
tyofthebusinesst
oachiev
eitsobj
ect
iveswit
hin
theshortestti
mepossibl
ewithoutl
osingquali
tyandwasti
nganyotherr
aw
 mat eri
als.Asuccessf ul managerwoul dt her efor edev el opbusi nessmet hods
thatareef fi
cienti nut il
izingt heav ai labler esour ces.
2.Environment alchange:Wi thincreasi ngpol lut i
onr esultingf rom
i
ndust ri
ali
zationandexcessi veexpl oitationofnat ural resour ces, managers
andacademi ciansar enowshowi nggr eati nt eresti nthear eaofchange.
3.Socialchanges:Thesear ebehav ior al changest hatcanbebr oughtaboutby
growt hinpopul ationwhi chr esultsi nt ochangeofneedsoft hecommuni ty
andv ari
ousdev elopmentaspect s; henceanent repreneurmustmake
changest hatsat isf ythegr owi ngneedsoft hesoci ety.
4.Compet ition:Thisi ncl udest hosebusi nessest hatsel lsi milarpr oduct
sor
givesimi l
arser vi
cesaswel landt heycompet ef ort hesamecust omers,
therefor
ecompani esmustbeconsi der edascompet itor sbecauset he
productspr oducedandputonmar ketar esi mi larandt argett hesame
customer s.
5.Changeoft echnol ogy :Technol ogyi sconst ant lychangi ngt hedemandof
consumer shencebusi nessesneednewt echnol ogical dev elopment sto
producenewpr oduct sandser vi
ces.
6.ChangeofDesi res:Ent repr eneursuset hei ral t
itudest ocont rolcondit
ions
henceopposi tement alal t
itudehel pst of ocusondesi redact i
vi
tiesand
eventsthatr esulti ntobet teruseofav ailabl er esour ces.
7.Gov ernmentdi rect ives:Somet imegov ernment si ssuepol i
cyst atements
whichcauseent repr eneur st odev el opent erpr i
sest hatmeett hei dent
ifi
ed
needsoft heeconomye. g.gov ernmentofUgandadi rect ingschool sand
studentst akeall sciencescompul sor y.

EFFECTSOFCHANGEONBUSI NESS
Inther ecenty ear schangehasl edt oradicalconsequencei nal l
partsof
commer ce, i
ndust ryandthepubl icservicesuchas:
1.Increasedcompl exi
tyofmet hodsofpr oduction.
2.Jobchangesl eadi
ngt omanywor ker stobeunempl oy ed.
3.Increasedcompl exi
tyofmet hodsofpr oduction.
4.Increasescostofacqui r
ingnewski l
lswor kers
5.Geogr aphi cal l
ocati
onofi ndustri
esandwor ker sincreasingthepossi bi
li
tyof
unempl oyment .
6.Increasedchangei ninputs,reduci
ngont hepr ofitmarginofcompani es,
leadi ngt osl owgr owth.
7.Resul tingi nst if
fcompet i
tionamongstcompani esforcust omer sandraw
mat erial leadingt othesethatcannotcompet efav or
abl etocollapse.
8.Increasedpr icesofgoodsandser v i
cest hatentrepreneur sproduce.Thisis
duet ot heneedt oacquirequal i
tyrawmat eri
alsatahi ghcostaf fect
ingthe
prof itabi l
ity.
9.Ov erdependenceonasi nglesupplierforinputs

(
b)CREATI
VITY
Cr
eati
vi
tyi
stheabi
li
tyt
obr
ingi
ngsomet
hingnewi
ntoexi
stencel
i
keanewi
dea,
newt echni
queofproducti
on,newstylet
omeett heidenti
fi
edneedofasociet
y
.or
Cr eat
ivi
tyi
stotheactofturni
ngnewandi maginati
veideasint
oreali
ty.I
t
requir
espassionandcommi tmentandtoactoutofcreativ
eabil
it
iesas
expressedbysomebody `
simaginati
on.I
tinv
olvesdevelopi
nginnovat
ive
soluti
onsoftheneedsorsocietyandmarket
ingthem.

I
MPORTANCEOFCREATI VITY
1.Creativityhelpst heent repreneurt osetapl atformf orcompet iti
on.This
i
mpr ov est hebusi nessper f
ormancei nt hemar ket.
2.I
thel psonet oper ceivet hewor ldinthenewor deri.
e.f indingt hehidden
part
ner sandmaki ngconnect i
onssoast ogener atef reshsol uti
onsand
newpr oduct sforchange.
3.I
thel pst hebusi nesst ocr eatenewpr oductsbr and.Thi si ncreasest he
profi
tabi l
ityofthebusi ness.
4.I
thel psmanager st odesi gnpolicythatdon’ thurtempl oy ees.This
i
mpr ov est herelationshipbet weent hemanagerandt hewor kers.
5.I
tincr easesawar eness.Thi shel pstoopent heent repreneur s`mindt o
newt hinki ng.
6.I
thel pst heent r
epr eneurt osolvepr oblem e.g.howt opr omot epr oduct
s
orser vices,howt omakeuseoft heav ai
lablelimitedr esour ce.
7.I
thel pst heent r
epr eneurt oshar penthebusi nessideas.Thi smakesi t
moreat tracti
veandi ncreasedt hepossi bil
it
iesofdev elopi ngitintoa
businessoppor tunity .

MethodsorTechni quesf ordev elopingt hecr eativeabili

tyamongt he
employ ees
Tobecr eativ e,ani ndivi
dual shoul d;
1.Thi nkbey ondt heinv isibleframewor k,thatsur r
oundspr oblem orsoluti
on.
2.Recogni zingassumpt ionswhenar ebeingmadeandchal l
engest hem.
3.Spot t
ingnar rowmi ndedt hinker sandwi deningt hefi
eldsofv isiontodraw
ont heexper iencesofot heri ndividuals.
4.Dev el
opi ngi deasf rom mor et hanonesour ceforasi t
uation.
5.Pr act icingf ortunei .e.f i
ndingv aluableandagr eeabl
et hi
ngswhennot
pract i
cal lyseeki ngf ort hem.
6.Tr ansf erknowl edgef rom onef ieldtoanot her.
7.Bepr epar edt ouseunpr edictableev entst oone` sadvantage.
8.Expl oret houghtpr ocessesandkeyel ementoft hemindofwor ki
n
anal yzingandsol vingofaf act .
9.Not ingdowni deast hatappar entlydropi ntothemi ndsot hatt heyarenot
forgot ten.
10. Usei magi nati
v et hinkingt of i
ndsol utioninnatureinot her
organi zat i
onorser v ices.
11. Tr yingsomet hingnewwhi chmaybest r
ong.
12. Maki ngconnect i
onwi thpoi ntsthatar eapparentlyrelevantornot
 easi l
yaccessi ble.
13. Suspendi ngj udgmentt oencour aget hecr eativepr ocessand
avoi dingpr imi tivecr it
icism.
14. Knowi ngwhent oleav et hepr oblem, I.enotunt ilsolutionhav ebeen
discov ered
Obst aclesorbar r
ier st ocr eat i
v i
ty
1.Negat iv et hinkingofani ndiv i
dual ,Mani fest edi nindividualsnott osee
anythinggoodi nwhat everi sbei ngdone.
2.Li mitedr esear chont hei ssuest hatneedpossi blesolution, t
hiscr eat esa
sit
uat ionwher eani ndi vidual mayt akeawr ongsol utiont oapr oblem.
3.Fai l
ur e/Fearofanent r
epr eneuroraper son, thisleadst osuchani ndi vi
dual
tofail tot ryoutsomet hingoranumberofsol uti
onsi nor dert ogett he
possibl esol ution.
4.Li mitedf inancef orf inanci ngcr eativeact iviti
es, thi
sl i
mi tani ndividual oran
entrepr eneurt oengagei nact i
v i
tiessuchasconduct ingmar ketr esear ch
andpr ov i
di ngmul tiplesol utionst oapr obl em.
5.Lackofqual i
tyt i
me, thismakesi thar df oronet odev elopcr eativeideasand
solutionsf orbusi nessuse.
6.Appl yi
ngt omuchl ogi ct oapr obl em, t
hissl owsdowncr eativit
yast he
mindsgetf ixedt oonesol ution.
7.Maki ngassumpt ionst hathi ndercr eativity ,suchassumpt ionsi nclude
assumi ngt hatf ai l
ur eoft hebusi nessi sduet owhi chcr af t
s,inher i
tedbad
l
ackf r om t hepar ent samongot her s.
8.Ext remedel aysi ndeci sionmaki ng; thisi smani f
estedi nconcent rating
muchonpastact iont oaddr essapr obl em athand.
9.Poorwor kingcondi tions, t
hisl imitst hef reedom ofwor kerst ot hi
nkbey ond
aboutt hepr obl em andpr ov i
di ngpossi blesol ut i
on.
10. Bei ngst ricttof ollowi ngofr ulesandr egul ations,thismakesaper sonnot
tothinkbey ondt hepr obl emsathand.
Character isticsofnoncr eat i
v eper son
1.Notabl et ot hinkposi tivelyaboutapr obl em
2.Toobusyorst ressest ot hinkobj ect i
vel y
3.Ver ysel fcr i
tical
4.Ti mi di nput tingf orwar danewi dea
5.Pr onet oappl yl ogi casaf irstandl astr esor t
6.Unabl et ot hinkl ater all
y
7.Al way sgoeswi thwhatot her ssay

CREATI VEPROCESS
Thi
sr efer
st othepurposeful,or
ganizedrisktaki
ngchangei ntroducedf orthe
purposeofmaxi mizingeconomi coppor t
uniti
es.I
tmayt akethef orm oflower
pri
cesneworbet t
erpr oductsorimprovementi ndesign.Thest agesinclude:
1.Ideager minati
on, Exact
lyhowani deai sgerminatedisamy ster
y;i
tisnot
somet hingthatcanbeexami nedundert hemicroscope.Formost
entrepreneurs,
ideasbegi nwithi
nterestinasubjectorcuriosityabout
 findi ngasol utiont oapar ti
cularpr obl em
2.Pr epar at ion, Thisi nvolvesal lstepsofgat her i
ngi nformat i
onanal yzingi tand
expl oi tingpossi blesolut i
onst ot hepr obl ems.
3.I ncubat ion, Thisist hesi t
uat i
onwhi chi nv olveal lowingt hemi ndt ocont i
nue
thinki ngov erandov ert hepr oblem andt hepossi blesol utionst ot hepr oblem.
4.I l
lumi nat ion, Thisr eferstoasi tuat ionofbui l
dingi nspi rati
onoft aking
act ionsbyhav i
ngsomer elaxat ionoft askbei nghandl ed.
5.Ver ificat i
on, Thisi swher et hei deai st ast ed, alternati
v esol utionsar e
pr ov i
dedandpossi bili
tyoft heirappl icabi litybef orepi ckingt hemostsui tabl
e
sol ution.
Individual cr eat i
v i
ty:
Forani ndi v idualt obecr eativeneedst hef ol l
owi ngaspect s
1.Knowl edge: TheT- shapemi ndwi t
habr eadt hofunder standingacr oss
mul tipledi sciplinesandoneort woar easofi n-depthexper tise.
2.Thi nki ng: ast rongabi l
itytogener atenov el i
deasbycombi ningpr ev iously
dispar at eel ement s.Thet hi
nki ngf orcemustbecombi nedwi t
hanal y t
ical
andpr act ical t
hinking.
3.Per sonal mot ivation:theappr opr iatel ev elsofi ntri
nsicmot i
vat i
onand
passi onf orone’ swor kcombi nedwi thappr opr i
atet eam f orcemot i
v ators
andsel f-conf idence.
4.Env ironment :anon- threatening, non- cont r oll
ingcl imat econduci vet oi deal
combi nat ionandr ecombi nationsuchas‘ i
nt ersect i
onmakesani ndiv i
dual to
becomecr eativ
e’.
5.Anexpl icitdeci siont obecr eativ eal ongwi thamet a-cogni ti
v eawar enessof
thecr eat ivepr ocesscangoal ongwayi nenhanci ngl ong-ter m creat ive
resul ts.

(c)INNOVATI ON
Innovationisdef inedast hepr ocessofut i
li
zingcr eat i
veabili
tyt omakeor
i
nt r
oducesomet hingnewornewr esour cesandweal t
h.OrInnov ati
oni saway
oftransfor mingther esour cesofanent er pr
iset hrought hecr eativ
ityofpeopl e
i
nt onewr esourcesandweal th.
TypesofI nnov ati
on
Everybusi nesscanbenef itfr
om i nnov ation.Av arietyofinnov ati
veappr oaches
areseenasbel ow:
(a)BusinessModal Innov at i
on: Thisinv olvest hewaybusi nessesar eoper at
ed
i
nt ermsofcapt ur ingv aluee. g.tel
ecommuni cat i
oncompani esmake
changesi ndel iveringt heirser vi
cessoast obeabl etocompet ewi t
hot her
fi
rms.
(b)Organizational I
nnov ation:Thi sinvolvest hecr eat i
onoral t
er ati
onof
businessst ructur alpract i
cesandmodel s.Thi si ncl
udespr ocess, mar ket
ing
andbusi nessi nnov ati
ons.
(c)ProcessI nnov ation: Thisinv olvesthei mpl ement ati
onofanewor
si
gnificantlyimpr ov edf lowofbusi nessact ivi
tiesordel i
verymet hod.
(d)ProductI nnovation: Thisreferst othei nnov ati
ont hatinvol
v esthe
 i
ntroduct ionofagoodoraser vi
cet hati snewandsi gnifi
cantlyimpr oved.
Thesenewchangesmayi nclude: impr ovement si nt hefunctional
charact eristi
csoft hepr oduct ,technical abil
ities, easyt ouseoft heitem
amongot hers.
(
e)ServiceI nnov ation: Thisinvolvest hei ntroduct ionofanewser v i
cethatis
i
mpr ov ed.
(
f)Suppl ychai ninnov ation:Thisr eferstoi nnov ationst hatoccuri nthesour ci
ng
ofinputi temsf rom t hesuppl iersandt hedel iver yofout putpr oductst othe
customer s.
(
g)Technol ogi calinnov at i
on,thi
spr imarilycompr isesofr esearchand
engineer ingef fortsai medatdev elopingnewpr oduct sandpr ocesses.
(
h)Product s-mar keti nnov aton,
i t hisconsi stsofmar ketresearch, products
design, ani nnov ationsi nadv ertisi
ngandpr omot i
on.
(
i)Admi nistrativeinnov ati
oni sconcer nedwi thnov elt
yi nmanagementsy stems,
control Techni quesandor gani zational str
uct ure.

CharacteristicsofI nnov ator

1.Ani nnov atorhasacompi lingv i
sion, he/ shei sablet of orecastorseeahead
tohav echangest hatmayoccuroraf fectthebusi ness.
2.Ani nnov atorisoppor tunityor i
entedi .e.he/ shebel ievest hattherecanbea
newwayofsol vinganypr oblem thatmi ghtaffectthebusi ness.
3.Ani nnov atorissel f
-discipl i
nedhe/ sheusessel f
-disciplinetoachieveresul
ts
byput ti
ngpr i
orityofusi ngt i
mewel l
.
4.Ani nnov atorisabl etoi dent i
fysomet hingnewandr elatesitsimpactonthe
socialenv ironment .
5.He/Shei ssur roundedbyposi ti
v ethinker si.e.peopl ewhohav eposi
tiv
e
atti
tudet owar dscr eat i
ngsomet hingnew.
6.Ani nnov atorisex tr
aor dinaril
yper sistent ;heorshei sabl et okeepgoing
whilefight i
ngal lobst aclesont hewayt hatmayt ryt ohi nderhim orherfr
om
creati
ngsomet hingnewaspert hesetgoal s.
7.Ani nnov atorisinnerdi r
ect edi.e.he/ shehasav i
si
ont oachi evewhich
mot iv
at eshi m/hert odosomet hingi tt akest oreacht hev i
sion.
8.Ani nnov atorisagoodl ear neri.e.he/ shehast heabi l
i
t ytolearnfast
erand
betterconcept st hathel pshi m orhert ocr eatesomet hi ngnew.

Adv
ant agesofi nnov ation
1.Itreducesr awmat er i
alwast agee.g.innovationofnewmachi nest hatare
mor eef f
ici
ent.
2.ItAssi stinpackagingandr eposi t
ioningofpr oduct
sf orglobaldistr
ibut
ion
e.g.mar ket
inginnov ati
on.
3.Ithel psi ndistr
ibutionofgoodsandser vi
ces.
4.Itincr easest hemar ketf
ort heent erpri
ses`productsandser vi
cese. g.use
ofi nter netmarket i
ng.
5.Itpr ov idesanewwaySeeki ngf inancing,e.g.joi
ntventurepartnershipi
n
busi ness.
6.Producti nnovati
oni ncr easessal esandpr ofi
tsofanent er
prise,asmor e
customer sar eatt
ract ed
7.Itgivesanent repreneuranoppor tuni t
ytointegratet hebusinessforgl obal
economyt hroughal l
iance.
8.Helpst oat t
ractnewcust omer stot hebusiness.e.g.innovati
onsin
promot ionandadv ert
isi ngnewpr oduct s
9.Ithelpsabusi nesst oachi eveefficiencyinpr oducti
on, e.
g.innovationi n
techniquesofpr oduct ion; thi
sincr easesout putandsal esoft heent erpri
se.
10. Ithelpstoi mprov epr oductionofgoodsandser vicesinanent erprise.e.g.
processi nnovati
on
11. Oper ati
ngexpensesar eminimi zed
12. It’
susedasacompet iti
veadv ant age,provideabasi sforfir
m` sgr owth
13. Innov at
ivefir
msdev elopstrong, posi
ti
vemar ketreputat
ions.

WAYSOFENCOURAGI NGI NNOVATONI NSMALLBUSI NESSES

1.Expect i
ngchangeatal l t
imes: Thishel pst heent repreneurt oalway sbe
readyt ocomeupwi thnewt hingst hatensur est hatbusi nessescopeupwi th
change.
2.Dev elopi ngi nnov ativest rat egi es:e.g.try i
ngoutnewt echnol ogythrough
resear ch.
3.Impl ement ingnewr ules: i.
e.anent repr eneurneedst ol earntogobey ondt he
existingi ndi cat orsofcompet i
tionint hebusi nessenv ir
onmentbyl ooki ngfor
newway sofdoi ngt hings.
4.Thinki nggl obal ly:thisenabl esanent r
epr eneurt ol ookf ornewmar ketf orits
product sabr oad, lookf ornewt echnol ogyabr oadamongot hers.
5.Av oidingbar rier sthatl imi tinnov ators: i
.e.ent repreneur sneedt oputi npl ace
measur est hatensur egoodi nternal co-oper ationamongdepar tment st o
promot egoodr elationswi t heachot herandot herout sidepar ti
essoast o
creat eagoodenv i
ronmentf ori nnov ations.
6.Act i
ngf astt ot akeadv ant ageofanynewbusi nessoppor tunit
y:i.
e.by
comi ngupwi thnewt hi ngst hatut ili
zet hei dent i
fiedoppor tuni
ty.
7.Beingal way sal earner :throughl i
steningt oot herpeopl e.
8.Measur ingper f ormancei ndi cat or:theent r
epr eneurneedst oconcent rateon
keyst rat egicandpr ofitablei ndicatorsbyf ocusi ngener giesonnewt hings
thatdr ivet hef uturesuccessoft hebusi ness.
9.Doi ngt hingswel l f
orot her s: forexampl eforcust omer s,suppl i
ersetc.t his
helpsmal lbusi nesst ost ayaheadofcompet itors.
10. Al way st hinki ngl i
keent repr eneur :t
hi shelpsonet oal way shav eideasand
evengoaheadt oimpr oveont hem incaseoff ail
uret ost art.

WHYSMALLENTERPRI SESAREABLETOTAKEONI NNOVATI ONSTHAN

BI
GGERENTERPRI SES
I
nnovati
onmeanst omakesomet hi
ngnew, ortodothingsinaneworder
.
Smallbusi
nessesarether
efor
eabletoadoptinnov
ationsthanbi
gger
busi
nessesbecauseofthefol
lowi
ng:
1.Mostsmal l
businessowner sar ewi l
li
ngt otrynewappr oachest omaket heir
busi nessesmor esuccessf ul t
hanbi ggerones.
2.Smal lbusinessesunder st andcust omer ’
sneed, hencet heyar eabl eto
i
dent i
fynewoppor tunit
iesandf i
xpr obl emsqui ckl yandef fi
cientl
yt han
biggerent erpri
ses.
3.Smal lbusinessescanqui ckl yimpl ementnewbusi nesspr act i
cesandadapt
tochangi ngmar ketcondi t
ionst hanbi ggerbusi nesst hatt akepr ocedures.
4.Manysmal lbusi
nessexper imentev eryi deaandt heyacceptnew
i
nnov ations.
5.Smal lbusinessesst r
ongl yr elyonsoci alnet workst oshar ei nfor
mat i
on
neededf orinnovativethinki ng.e. g.f
riendsr el
ativ
eset c
Sour cesofi nnov at
ions
Innov ationi soccasi onall
yt her esul tofast rokeofgeni us.I toftenoccur sin
responset oapr oblem oroppor tunitythatar i
seeitherinsideorout sideofan
organi zation.Managementexper tPeterDucker( 1909)hasi dentifi
edt hree
external impet usesi nternal prompt sincl
udeanexpect edoccur renceincognitos,
processneedsandi ndustryormar ketchange.

Inter nalf or ces

Unexpect edoccur rencei ncludedmi shaps, suchasaf ail
edpr oducti ntroducti
on.
Itisof tent hr oughsuchunexpect edf ailuresorsuccesst hatnewi nformat ion
broughtt ol ight.Fori nst ancef oldsf ailedEdsel gav et hecompanynew
i
nf or mat ionaboutmar ket i
ngt hatal l
owedi ttoachi ev eSt ell
a, gai nswi t
h
succeedi ngpr oduct s.Unexpect edoccur rencecanal sot aket hef or m of
acci dent , forexampl e, thehugel ysuccessf ulNat ur alsweetar tifi
cial sweet ener
wascr eat edbyanacci dentdur i
ngapr ojectcompl et elyunr elat edt osweet eners.
Incongr uitiesr esul tfrom di fferencei nacompany ’sori ndust ryper ceptionand
realitye. g.al t
hought hedemandf orsteel cont i
nuedt ogr owbet ween1950- 1970,
prof itsi nthest eel indust ryfell.Thiscausedsomei nnov atorst odev elopt he
steel mi l
l al essexpensi v emet hodofmaki ngst eel thatwasal somor e
conduci vet ochangi ngmar ketdemands.
Innov atorsi nspi redbypr ocessneedsar et hosecr eat edt osuppor tot her
product sorpr ocessf orexampl eadv er t
isingwasi nt r
oducedt omakemass
producednewspaper spossi ble.Newspaperpubl isher s’ devisedadv er t
isement s
tocov ertheexpenseofpr inti
ngt henewspaperont henewpr inti
ngequi pment
theyar eacqui red.
Ext ernalf orces
Exter nal i
mpet usesuset oinnov atei ncludedemogr aphi cchangesShi ftsin
per cept ionandnewknowl edge.
Demogr aphi cchangesaf fectal laspect sofbusi nessf orinst anceani nfluxof
AsianandMexi cani mmi gr antsintot heUni tedSt at eshascr ushedanew
mar ketr ichesf orcompani esl ikewi seani ncr easei nt helev el andeducat i
oni n
Ugandahasr esul t
edi nqual i
fiedwor kersgoi ngf orsomel owpay ingj ob.

Changei
nper
cept
ional
soopent
hedoort
oinnov
ati
onexampl
edespi
tet
hef
act
thathealthcareinUgandahascont i
nuallybecomi ngbett
erandmor e
accessible,
peoplehav ebecomei ncreasinglyconcernedaboutt hei
rhealt
hand
needf orbett
erandmor eaccessi blecar e.
Thischangei nperceptionhasgener atedahugemar ketforhealthmagazine,
vit
aminsuppl ementsandexer ciseequi pment .
Final
lyoneoft hestrongestext ernal i
mpet usesfori
nnovationisnewknowl edge
oremer ginginnovat
ivecompani escanmakepr ofi
tbyexploit
ingItsnew
appli
cationandmar ket sforexampl ethei nnovati
onsrangingfrom improved
carsandbul l
etproofv est
s.

ENTREPRENEURSHI PASACAREEROPTI ON
Acar eeri saj obofpr of essi ont hatsomeonedoesf oral ongper iodoft imei n
hisl i
fef orsur v ival whi chenabl eshi mt oachi ev ehi sobjecti
ve.E. g.Account ant,
Cashi er , Dr i
v er, Jour nal i
st ,Mi dwi fe,
Choi ceofcar eer
Choi ceofacar eeri sv eryimpor t
antt oev eryper sonitrequiresser ious
consi der ation.Choi ceofcar eerdet ermi neswhatwi lloneevent uallybecomei n
future, whatwedo, howmuchweear nandoutl ifestyle.Teacher sandpar ents
helpust ochooseourcar eer .
Fact or st hati nf luencechoi ceofaper son’ scar eer
1.Par ent ,somepar ent sar eencour agi ngt hei rchi l
drent odocer tainjoband
leav eoutot her si ndi rectlybecausechi ldr enspendmor etimewi ththeir
par ent s.Aper sonwhoi samedi cal doct ort endst ohel phischi ldtodo
Biol ogybyassi stingi nBi ol ogy .
2.Peer -Pr essur e, Fr i
endscani nfluenceaper son’ schoiceofcar eer.Thisis
becausesomepeopl eal way swhatt of itint hei rpeergroupssot heyendup
opt ingf ort hesamecar eerast heirpeer s.
3.School sandi nst itut i
onsat tended, Di ffer entschool sandi nst i
tutions
influencechoi cecar eerofst udent st hatgot hrought hem ei t
hert hrought he
subj ect s,t heyemphasi ze.
4.Academi cper f ormance, St udentt endst ochoosecar eersbasedonhowt hey
per for m academi cal lyincer tainsubj ect s.Inf actmostpeopl ej ustselect
car eer sbasedont hesubj ect stheyhav edonewel l.
5.Rol emodel andment or, Dif ferentpeopl ehav ecer tainpeopl etheyadmi re
andwantt oemul at e.Theyendupt aki ngt hei rcareer.
6.Phy sical andment al abili
ty ,somecar eer sr equi resomemi ni
mum l evelof
phy sical fi
tnessandt her ef oreonl yt hosewhoar ement al
lycapabl ecan
sel ectt hatcar eer .Forexampl e, disabl edper soncannoteasi lybecomea
sol dierorbl i
ndper sonbecomi ngadr iver .
7.Per sonal Int er est s, Aper sonmaychooseacar eerbasedonhi sorher
inter est .Peopl et her eforet akeupcar eer sinf i
eldstheyenj oymost .
8.Fi nanci alexpect at ions, t
hati st osaywhenoneobser vest hatpeopl ein
cer taincar eer sar ev eryr ich, t
heyt endt opr ef ersuchcar eer sexpect i
ngt o
ear nhi ghl y.
9.Gov er nmentpol icy ,Gov ernmentmayal soi nfluencet hecar eerst hatpeopl e
 takee.g.whengover
nmentgi vesschol
arshipst
ostudentsdoi
ngpart
icul
ar
course.
10. Talentsandnatur
alabil
i
ties,Mostpeoplechoosecareer
sbasedonthei
r
tal
entsandabil
it
iesmusici
ansar t
hri
ti
cs.

Car eeropt i
ons
Onecandeci dewhet hert oi npai dempl oy mentorsel fempl oy ed
Paidempl oy ment
Thisiswher esomeonet akesupaj obi nwhi chhe/ shei spai dauni for m wage
orsal aryei theronadai l
y ,weekl yormont hlybasi sf oraspeci ficassi gnment
gi
v enbyt heempl oy erforaspeci fiedper i
odoft i
me.
ADVANTAGESOFPAI DEMPLOYMENT
1.St eadyI ncome, Apai dempl oy eei sassur edofar egularpay mentatt heend
ofaspeci fiedper iodoft i
me.
2.Onei sgi venaspeci ficr esponsi bilit
yt oper formance, e. g.thewor kofacook
i
naschool ist opr epar emeal sf orstudent swhi l
et het eachert ot each.
3.Awor keri satt i
mesgi venf ri
ngebenef it
sl i
ket r
anspor t,sickl eav e,
accommodat ion, meal satt hewor kpl ace.Thi sreducesper sonal home
expensesandi mpr ov eshi slivingst andar ds.
4.Ther eismi nimal fluctuat ioni nt heempl oy eeear ni ngs; thisi sbecause
empl oy eesar eassur edoft heirpayatal l ti
mes, regar dlessoft hewor kdone.
5.Ther eisr educedf atigueoft heempl oy ees; thisisbecauseempl oy eeswor k
forf i
xedandf av orabl ehour s.
6.Empl oy eeski llsisi mpr ov ed,thi sisbecauset rainingsandwor kshopsar e
alway sor gani zedt oi mpr ov et hewor kers`ef f
ici
ency .
7.I ti
seasyf orgov ernmentt ocol lectt axesf rom pai dempl oy eese. g.NSSF,
PAYE.
8.Empl oy eesar egui dedbyr ulesandgui del i
nes, thismi nimi zesr i
sksandt he
wor kst ationi sundercont r
ol oft heowner .
DISADVANTAGESOFPAI DEMPLOYMENT
1.Ther ei sat endencyf orempl oy eesf ollowi ngst rictr ul
esandr egul ationsor
stri
ctor der s.Thi sr educest hei rcr eativit
y .
2.Ther eisaf ixedr at eofpaywhi chcanhar dlybei ncr easedev eni fout put
i
ncr eases.Thi smayaf fectl ivingcondi ti
onsdur ingi nflat i
ont imes
3.Responsi bi li
tiesofawor kerar ef i
xed.Thi sl i
mi t
sawor kerf rom acqui ri
ng
otherski l
ls.
4.Ther ei sl imi tedr oom f ori niti
at ingnewi deasbyempl oy ees.Thi sbecause
wor kersf ollowst ri
cti nst ructions
5.Wor kersmaybedi smi ssedduet opoorper formanceorduet ot hebi asof
theempl oy er.
6.I ncasesomeempl oy eesar eabsent ,wor kcomest oast andst illsince
ever yoneconcent r
at esonhi s/herwor k.

SELFEMPLOYMENT
Thi
siswher
eanindi
vi
dual
star
tshi
sorherowni
ncomegener
ati
ngact
ivi
tyand
getsempl oymenti ni t.
ADVANTAGES
1.Thei ncomeoneear nsi spot ent
iall
yunl imited, sincei tcanbei ncreasedin
caseofi ncr easei npr ofi
t s/output .
2.Ther ei snoi nter ferencef rom any one, sincet heownerhasf r
eedom t odo
whathe/ sheassumescor rectfort hesuccessoft hev enture.
3.I tpromot eswor khar d;thi sisbecauseoft heur get omaket hebusi ness
succeed.
4.Thewor kst at i
oni sent irelyundert hecont roloft heowner ,astherei s
nobodyt ot akecar eapar tfrom theowner .
5.Theownerhel psot her swi thent repreneur i
al skills; thi
sisbywayofgui di
ng
them towar dsst artingt heirownbusi nesses.
6.Onebecomesboss, dir
ect sinsteadofbei ngdi r ect ed.
7.I tPromot essel f-
est eem andconf i
dence, thisisbecauset hereisno
possibili
tyofdi smi ssal.
8.Ther ei sroom f orcr eativityandper sonal init
iativ et owar dsdev elopmentof
thebusi ness.
9.I tpromot ef inanci alindependence, thisisbecauset heownerear ner s
unli
mi tedi ncomes
10. Pr omot esi ndependencei ndecisionmaki ng, sincet her eisnobodyt o
consultandmostact i
vit
iesar esuper visedbyt heowner .
Disadv antagesofsel f
-empl oy ment
1.Theownersacr if
icesper sonal f
reedom, thisisbecauset hev enturerequir
es
stri
ctsuper vision.
2.I ncaseofbusi nessf ail
ur e,hugel ossesar eincur red.

ENTREPRENEURMOTI VATI ON
Entrepr eneur ialmot i
vationi sast rongdesi rei
mpul se, determi nati
onanddr i
ve
ofindi vidualst oaccompl ishapar ticulargoal inbusi ness.Ent r epr
eneur
mot ivat i
onsomet i
mesr esul t
sf rom t hedesi retoaccompl i
shsome
phy siological needsofr ecogni tion, responsi bil
iti
es,est eem andpar t
icipation.
Or
Entrepr eneur ialmot i
vationi st hepr ocesst hatactivatesandi nduces( mot ivates)
theent repreneurt oexer thi gherl ev elofef fortsfortheachi ev ementofhi s/her
entrepr eneur ialgoals.
Entrepr eneur ialmot i
vationcanal sobet akent omeant hefor cesordr i
v ewi thi
n
anent repreneurt hataffect st hedi rect ions, i
ntensityandper sev er
anceof
his/herv ol
unt arybehav iourasent repr eneur .
Inthi sregar d, amot i
vatedent repr eneurwi llhavet heur getoexer tapar ti
cular
l
ev el ofef f
or t(int
ensity)foracer tainper i
odoft ime( per sever ance)t
owar ds
realizingacer taingoal (direction) .
Entrepr eneur ialmot iv
at i
ngf act ors
Anumberoff actorsmot i
v ateent repr eneur ialacti
viti
esandt hesehav ebeen
categor i
zedi ntot wo–t hei nter nal andext ernalfactors.
Int
ernalf act ors
1.Desi ret odosomet hingnewt hr oughcr eat i
v ityandi nnov at
ion.Successf ul
ent r
epr eneur sar ecr eat i
v ethinker s.Socomi ngupwi thnewi deas, new
product sorpr oduct iont echniqueswoul dwel lservet heirpur pose.
2.Needt obecomei ndependent ; entrepreneur sal way senj oyt heoppor t
unityof
beingsel f-r
eliantanddependentast hisat tractssoci alrespectand
recogni tionbesi desensur i
ngj obsecur it
yandi ndependencei ndeci si
on
maki ng.
3.Achi evewhatonewant sinlife; successf ul ent r
epr eneur sar edr i
v enbyt he
desiret oachi ev et hei rdreams.Theyar ev isionar yandf ocusedt or eali
zing
theirdr eamsnomat terwhat .
4.Ber ecogni zedf orone’ scont ribut i
on; Entrepr eneur sar eal way shi ghl y
respect edandsoci allyrecogni zedbecauseoft hegoodsandser v i
cest hey
prov i
det osoci et ybesi desempl oymentcr eat i
on.
5.One’ seducat ional backgr oundespeci all
ywhensuchent repr eneur i
al skil
lsof
creat i
vityandi nnov at i
veness, risktaking, l
eader shipanddeci sionmaki ngare
involved.
6.One’ soccupat ional backgr oundandexper i
encei nt her elevantf ieldsl i
kein
businessmanagement .
Exter
nalf act ors
1.Av ail
abi l
ityofgov ernmentassi stanceandsuppor tinf orm off av orabl e
investmentcl i
mat el iket axhol iday s,givi
ngofsubsi dies, prov isionoff ree
landf ort hebusi nessent erpr i
seet ccanmot i
veent r
epr eneur s.
2.Thepr esenceofcheapabundantl abourf or ceandr awmat erials.
3.Thepr omi singdemand/ largemar ketf ort hepr oductorser v ice.
4.Encour agementf rom t heal readyexi st i
ngandexpandi ngbusi nesses.

Classi calconcept sofent r epreneurmot ivation

Thisr eferst othealtit
udewhi chst r
onglyi nfl
uencedbyandt heycannotber eall
y
account ed.
Powermot ives
Istheabi l
it
yt oacqui r
eot her stobehav einawayt hatsuit
sot herse.g.ani nfant
agr eatdeal ofpower .
Compet encemot i
ve
Thisist heinterestingettingt oknowwhatt hewor l
disli
ket obeabl et omake
thi
ngshappent ocreateev enr atherthanmer elywai t
ingforthepossi blee.g.in
adultst hecompet encemot i
veisadesi ref orjobmost l
yandpr ofessional
endur ancef oraf fi
li
ati
onmot i
ves.
Affi
liationmot i
v es
Thisisadesi r
et obewi thot herpeopl eregar dlessofwhet hernothingt hatthe
count ryhasagai nstpeopleseekst ogai nsomeki ndofinter
personal reward
whichot hersmetoutsuchasmoneyf av our.
Entrepr eneurisact i
onor i
ent edhi ghl
ymot ivatedindivi
dualswhot akerisksto
achiev egoal sthatar erefer r
edt oasbeingachi ev
ement smot iv
ate.They
assumer esponsi bili
tiesf orwor k; t
her efor et hegov ernmentmot ivat est hem i n
achiev ementmot ivated.Theyassumer esponsi bilityf orwor kt her ef ore
gover nmentmot ivatet hem i nachi ev i
ngt hei rgoal st hr ough;
1.Pr ov idinggoodi nfrast ruct ur es.
2.Apr ov i
di ngconduci veenv ironmentt hatf aci l
itat eent r
epr eneur ialact ivi
ti
es.
3.Rel iabl eut il
itysuppl ysuchaswat er .
4.Recogni tionoft heut ility.
5.Pr ov idingi nv est able
6.Put t
ingofl awst hatpr ot ectt hem.
Achiev ementMot i
v ation
Thisi st hei ntensi v eur get oexcel anddosomet hinguni que.
Thepeopl ewi thst rongneedt oachi evehav eani nt ensi vedesi ref orsuccess.
Theywantt obechal l
engedsot heysetmoder at elydi f
f i
cultbutnoti mpossi ble
goesf ort hemsel vest aker eal i
st icrisksandpr efert oassumeper sonal
responsi bilityt ogett hej obdone.
Char act er i
st icsofachi ev ementmot i
v ati
on
1.For mul at i
ngofaconcer tgoal t
obeachi ev ed.Goal st hatar ef ormul at edisin
suchawayt hatst retchesone’ sabi l
it
yandef for t
s.
2.Goal ssetar enoti mpossi bl eort oodi fficul tbutar enott ooeasyt obe
achi ev ed.
3.Dev elopast rongi nter nal commi tmentori nv olv ementwi t
hagoal .
4.Taki ngper sonal r
esponsi bilityfort heout come.
5.Anal yzi ngt heenv ironmentt ocr eat eoppor tunit i
esf orachi ev ementr ather
thanpassi vel ywai tingf orchancest ocomeoneway .Thati sonei sabl eto
seepossi bili
t i
esandoppor tunitiesi naddi tiont ot hepr obl em.
6.Exper iment ingwi thnov elsact i
vityt or eacht hegoal .Thi sist hrough
ant icipat ingpossi bili
tiesofsuccessr athert hanf ailureanddoi ngsomet hing
aboutobst ancl eswhi chcancausef ailur e.
7. Seeki nghel pf rom exper tsr athert hanf rom f riendsi .e.ov ercomebot h
ext er nal blocksandi nt ernal orper sonal limi tation.
8.Del iver ingmaxi mum sat i
sf act i
onf rom achi ev ementi .
e.sel fandl essf r
om
ot herf act or sl i
ker ecogni t
ionandmoney .
9.Exper ienci ngposi t i
v ef eelingsofj oyandsat i
sf act i
oni nachi ev i
ng
moder at elychal l
engi nggoal sanddi sappoi nt mentbutnotsel f-
condemnat ioni nf ailur e.
10. Lear ni ngf rom f eedbackt hroughanal y zingwhet hert her ightmet hods
wer eempl oy edorchangesshoul dbecar ri
edout .
Benef itsofMot ivation( adv ant agesofachi ev ementmot ivation)
Anent repr eneurwhohasahi ghl evel ofachi ev ementmot i
v ationhasagr eater
chanceofsuccessi thast hef ol l
owi ngadv ant ages:
1.Incr easi ngsel f-conf idenceofaper son, whohasachi ev edsuccess, hencei s
abl et osetmor echal lenginggoal s.
2.Pr oduci nghi ghper for manceorr esul tsi .e.per sonwhohasobt ained
successuset hesameexper iencet odeal wi thanyf utur echal lenge.
3.Itenabl est heent repr eneurt ouseofenv ironmentpr ofit
abl y ,andpl anhow
 toat tainmor esuccess.
4.Mot ivatesent repreneur st otakecaref ul
lycal culater i
sks;thisr educes
wast ageandpr oducehi ghchancesofsuccess.
5.Itcr eat esmuchi nteresti ntothepersont odev elopconcr etemeasur esof
howhe/ shei sperforming.
6.Itleadst obet terutil
i
zat ionoft heav ail
abl eresour cesi nordert oachi eve
great ersuccess.
ChallengesofMot ivati
on
Achiev ementmot i
vati
oni sanur getoexcel , t
ocompet eanddoessomet hi
ng
uniquet hati tmustbeassoci atedwi t
hconst antpr essur eandst r
esswhi chmay
l
eadt ohi ghanxi etyregar di
ngper formancer esulti
ngi nf earorf ai
lurehencet he
chall
engesi nclude:
1.Set tinggoal sthataret ool owt oensur esuccess.
2.Itisassoci at
edwi thconst antpressureandst r
ess; thisisbecause
achi ev ementmot i
vationar guesaper sont odosomet hinguni que.
3.Itleadst ohi ghleveloff earf orfail
urewhi chinmostcasesmakesonenot
ev ent odoany thi
ng.
4.Set tinggoal sthataret oohi ghwhi chmi ghtfaili.e.someent repr eneurshav
e
theur get oexcelortosetgoal sthatar enoteasi lyachievable.
5.Thi nki ngofweaknessandpr oblemsi nt heenv ironmentonl yi.e.onedoes
nott hinkoft heav ail
abl est r
engthandoppor tunity .
6.Thechal lengesofobt ainingther i
ghti nputt owor kwi t
ht oensur esuccess.

Factorswhi chhi nderent repr eneurmot iv ation

Entr
epr eneur ial mot ivationcanbedev elopedandi tcanbebl ockedbycer tain
social
,pol i
tical andeconomi ccul tural ci rcumst ances.Henceent repreneur
achievementcanbehi nder edbyt hef ol l
owi ngf actor s:
1.Theconser vativenat ur eoft hesoci et y :Thesoci etywhi chdoesnot
encour ageent repr eneur ialspi ri
tandar guet oexcel amongi ndividuals
hinder sent r
epr eneurmot ivati
on.
2.Negat i
vesoci al cultur albel i
ev esint hesoci ety:Somebel iefshinder
entrepr eneurmot ivati
one. g.cer tainj obscanbestbeper formedbyf emal e
andot her sar ef i
tf ormal e, thatmaki ngpr of i
tinI slam isbad.
3.Unf avor ablepol i
tical syst em:Thi sdi scour agesi ndi v
idual’
spr i
vateowner shi
p
ofpr oper t
yandt hislimi tscr eat i
vityofani ndividual henceent repreneurial
mot ivationi saf fect ede. g.att imesgov ernmentpol i
cydiscourages
individual ’
si niti
at i
ve.
4.Unf avor ableeconomi cenv ironment :t hisisdescr ibedi ntermsofpol i
cy,
unregul at edl endi ngact ivitieswhi chmayber i
gidandhencedi scour aging
entrepr eneur ialmot i
vation.
5.Psy chol ogical fact ors:Likeor ientat ion, i
nsecur ityet c.t
hisli
mi ts
entrepr eneur ialmot i
vation.
6.Inadequat epr ovisionofphy si
cal inf rast ructuree. g.unr el
iablesupplyof
power ,poorst ateofi nfrast ructures, inadequat ewat ersuppl yamongot hers
thisl i
mi tsent repr eneur ial mot ivation
7.Pooreducat ional orient at ion, li
mi t
edent repreneur i
al exper ienceandmar ket
oppor t
uni t i
es
8.Li mi tedent repr eneur s.
Char act eristicsassoci at edwi thst r
ongneedf orachi ev ement .
Successf ul ent repr eneur shav eaposi t
ivement al alt
it
udewhi chmot i
v atest hem
tofocusondesi r edact i
v ities, ev entsandr esultst heyhopet oachi eve.
Mot ivationcomesf r
om hav i
ngaposi tiveal tit
ude.Ent repr eneur sl ear nf rom
ever yexper iencet heyhav e.Thef oll
owi ngf actorshel pedt hepot ential to
dev elopaposi ti
v eal t
itude:
1.Maki ngeachexper ienceal ear ningoppor tunity,thati st osaywhat ev ert akes
placeoneneedt olear nf rom i t.
2.Get ti
ngi nv olvedi nposi tiveact ivi
ties, whi char epr oduct iveand
dev elopment al i
nnat ur e.
3.Set ti
ngwor kobj ect i
v est obeachi ev ed, thisist hroughset tingr eal i
st icand
achi evabl eobj ect i
veswhi chhel ponet ohav east r
ongneedf or
achi evement s.
4.4Net wor kingwi t
hsuccessf ul ent r
epr eneur s, t
hi shel pst oacqui rethei r
thinkingmanner isms.
5.Hav ingaposi tivement al attitude
6.Ident if
yingsuccessf ul ent repr eneur st obeusedr olemodel sandment ors.
Thi shel psonet ogetgui dance, learnf r
om t hem andf ollowt hei rfoot stepsto
achi evet oachi eveper sonal goals.
7.Av oidingnegat ivethought sandi deas.
8.Taki ngadv ant ageofoppor tuni t
ytoi mpr ov eony oursi t uation.egper sonal
l
ife, wor kl ifeorl ifei nt hecommuni ty
9.Hav ingf aithinwhat ev erbei ngdone
10. Bei ngr esul tor i
ent ed, e.g.ensur ingt hatanyt askassi gnedt oy oui sdone
asexpect edt ocauser esul t
Way sofdev elopi ngent repr eneur i
alhabi ts
1.St ar ti
ngwor kear li
ert hananyi ndividual
2.Changi ngper sonal habi tst hatmayaf fectani ndivi
dual
3.Pl anni ngday `sact i
v i
tiesbef or egoi ngt osl eep
4.Maki ngdai lypr act i
ceofanact ivit
yf orsamet i
mei nor dert ogai nexper ience
5.Rev iewi ngcur renthabi tsi nr elati
ont ot hef uturegoal sanddi scussi ngt hem
wi t
hani ndi vi
dual thatmi ghtchanget hecur r
entst at us.

RISKTAKI NG
Riskist hepossi bi
li
tyofsufferi
ngharm, lossordanger.
Businessr iskreferstothefactorsthatmayhav eanegat i
veimpactont he
profi
tabilit
yorsuccessofacompany .I
tcanstem from ext
ernal
fact
orst hata
businessmayhav elit
tl
econt r
oloverorissueswi t
hinthecompanyitsel
f .
Ar i
sksi tuati
onoccur swhenachoi cei srequir
edbetweentwoormor e
al
ternativeswhosepot enti
aloutcomesar enotknownandmustbesubj ecti
vel
y
evaluated.Itinvolv
espot ent
ialsuccessandpot enti
all
oss.
Typesofri
sks
1.Lowr i
sks,
thesear eri
skt hatyi
eldl
owprofit
stot hebusiness.e.g.star
ti
ng
thesamebusi ness
2.Moderateri
sks, t
hesear eri
sksthatcanbeforecasted,cal
culatedand
managedbyt heent r
epreneur
3.Highri
sks,theseareriskswhosechancesofhappeni ngar everyhighandyet
theentr
epreneurhasv eryli
ttl
econtr
olovert
hem andt heiroccurrence
causesseri
ousdamaget othebusi
ness.

Procedur esf oranal yzingar i

skysi tuation
Mostent repr eneur ial t
rait
sar ei nterrelated.Ri skt akingbehav iouri srelatedto
creativi
t yandi nnov ation,andi tisanessent i
al par toft urningideasi nr eali
tyfor
selfconf i
dence.Taki ngcal culatedr isksi saski l
l andt heent repreneurusest he
foll
owi ngpr ocedur es:
1.Assessi ngt her i
sk:Thi si sasi tuationwher eanent repreneuri sablet o
establ ishwhet hert herei sapot ent i
al r
iskornoti nchoosi ngapar t
icular
alt
er nat i
v eorcauseofact ion.
2.Det er mi ningt hegoal sandobj ect ives:Theent repreneurgoal sand
object ivesf orriskt akingmustbeconsi stentwi tht hebusi nessi nterestin
termsofr i
skmanagement .
3.Sur v ey i
ngonv ariousal ternat i
vesav ail
able: Asur v eyi scarri
edoutt oeach
alt
er nat i
v et houghtofanddet ailsshoul dpr ov idedofeachal ternativesso
thatcost si nv olvedcanbeassessedi ntermsoft hef i
nancialimpl i
cationof
theal ternat iv etot aken
4.Gat her i
ngi nformat i
onandwei ghingt heal ternat i
ves:t heinfor mat i
on
gather edi susedt oassesst hev ariousal ternat i
vesi ntermsoff uture
demand, Compet it
ivereact ionsandt heef fect soft hoser eact i
onscal culated.
5.Mi nimi zingt her i
sk: Thisi sthest ept hatinv olvesr eal i
sti
cassessmentof
howbestt omi nimi zet her i
skswhi l
emaxi mi zingt hebenef i
tsusi ngoneor
mor eoft hest r
at egiessuchasusi ngcr eat i
vity,ent repreneur`sabi l
ityamong
other s.
6.Pl anni ngandi mpl ement ingt hebestal t
ernat i
v es,onceanal t
er nati
v eis
select ed, apl anismadef ort hei mpl ement ationoft heal t
ernativet his
i
ncludepr epar i
ngat imet able, definingcleargoal sandobj ectivesand
feedbackpl anset csot hatchangescanbemadewher epossi ble.

Fact
orsusedwhenanal yzi
ngorassessi ngr i
sks
1.Theflexibi
lit
yoft hebusi ness
2.Avai
labili
tyofmar ketforgoodsandser vicesresul
ti
ngfrom al
ter
nat
ivet
aken
3.Thepr i
cingpolicyoft hebusi ness
4.Theexper ienceoft hebusi ness
5.Honest l
yorr el
iabili
tyofall t
heparti
esthatthebusinessdealwit
h.
6.Thepr ofi
tabil
it
yoft hebusi nessidea.
Commonexampl esofr i
sksencount eredbybusiness
 Lossofgoodsi nt hetransit.
 Acci dentsatwor kplace.
 Thef tofthegoodsandbusi nessproperty
.
 Ri
skofdeci si
onmaki ng.
 Changeoft heconsumert asteagainstenterpr
ise`pr
oduct
,
 Fireoutbr eaks.
 Embezzl ementofbusi nesscashbywor kers.
 Baddebt s.
 Breakdownofmachi nery.
 Nat uraldisaster
sl i
ker ain.
 Af allindemandf orent erprisepr
oducts.

MEANINGOFDELEGATI ONOFAUTHORI TY
Del
egati
onofauthor
it
yisonevi
tal
organizat
ionalprocess.I
tisi
nevi
tabl
eal
ong
wit
htheexpansi
onandgrowthofabusinessenterprse.Del
i egati
onmeans
assi
gningofcer
tai
nresponsi
bil
i
tiesal
ongwiththenecessar
yaut
hor
it
ybya
super
iortohi
ssubordi
natemanagers.Del
egati
ondoesnotmeansurr
enderof
author itybyt hehi gherl ev elmanager .Itonl ymeanst ransferofcer tain
responsi bili
tiest osubor dinatesandgi v ingt hem t henecessar yaut hority,which
i
snecessar yt odi schar get heresponsi bili
typr oper ly
.Del egat ioni squi t e
commoni nal laspect sofl i
feincl udingbusi ness.
i
ndel egat ion, anat tempti sbeingmadet ohav emeani ngful par ti
cipat i
onand
cooper at ionf rom t hesubor di
nat esf orachi ev ingcer tainwel l-
def inedr esult
s.
Duet odel egat ion, ther out i
ner esponsi bi l
i
t i
esoft hesuper iorar er educed.Asa
result,heconcent ratesonmor eur gentandi mpor tantmat ters.
Secondl y,duet odel egat ion,subor dinat ebecomesr esponsi bl ef orcer tain
functionst r
ansf erredt ohi m.Del egat i
oni sat ool ,whi chasuper iormanager
usesf orshar inghi swor kwi ththesubor dinat esandt herebyr ai singhi s
effi
ciency .
It
’simpor tantt odel egat edut i
essoast omi nimi zet hepossi bilityofr i
sk
occur rences
Delegat i
oni nvol vest hef ol l
owingt hreebasi cel ement s:
a.Assi gnmentofdut i
est osubor dinat es,
b.Gr ant ingofaut hor ityt oenabl ethesubor dinat est oper formt hedut ies
assi gned, and
c.Cr eat ionofobl i
gat i
onont hepar tofsubor dinat etoper for m dut i
esi nan
order lymanner .
Object ivesofDel egat i
onofAut hor i
ty
1.Tor educet heexcessi vebur denont hesuper iorsi.e.,execut ivesand
manager sf unct ioningatdi f
f erentl ev els.
2.Topr ov ideoppor tunitiesofgr owt handsel fdev elopmentt oj uni orexecut ives.
3.Tocr eat eat eam ofexper i
encedandmat uredmanager sf ort heOr ganization.
I
tact sasat echni queofmanagementandhumanr esour cedev elopment .
4.Toi mpr ov ei ndiv idual aswel l asov erall efficiencyoft heOr gani zat i
on
Advantages/I mpor tanceofDel egat ionofAut hority
1.Reliev esmanagerf ormor echal lengi ngj obs: Del egat ionmakesi tpossible
forthemanager st odi stribut et heirwor kloadt oot hers.Thus, manager sar e
rel
iev edofr out inewor kandt heycanconcent rat eonhi gherf uncti
onsof
managementl i
kepl anni ng, or gani zing, cont rolli
ng, etc.
2.Leadst omot ivationofsubor dinat es: Subor dinat esar eencour agedt ogi v
e
theirbestatwor kwhent heyhav eaut horitywi thr esponsi bili
ty.Theytake
mor ei ni ti
ativeandi nter esti nt hewor kandar eal socar efulandcaut iousi n
theirwor k.
3.Facili
t atesef f i
ciencyandqui ckact i
ons: Del egat ionsav est i
meenabl i
ngt il
e
subor di natest odeal witht hepr obl emspr ompt ly.Theycant akethe
decisionsqui cklywi thint heiraut horit
y .Itisnotnecessar ytogot othe
super ior sforr out inemat ters.
4.Impr ov esempl oy eemor ale: Del egat ionr aisest hemor aleofsubor di
natesas
theyar egi vendut iesandsuppor t i
ngaut hor ity.Theyf eel thattheyar e
responsi bleempl oy ees.Theat titudeandout lookofsubor dinatestowar ds
wor kassi gnedbecomesmor econst r
uct ive.
5.Dev elopst eam spi rit:Duet odel egat i
on, ef f
ect ivecommuni cat i
ondev el
ops
betweent hesuper ior sandsubor dinates.Thesubor dinat esar eanswer able
tosuper i
orsandt hesuper ior sar eresponsi bl ef ort heper formanceof
subor di nates.
6.Mai ntai nscor dialrel ationshi ps: Thesuper iorst rustsubor di
nat esandgi ve
them necessar yaut hor ity.Thesubor dinat esacceptt hei raccount abil
it
yand
thisdev elopscor di al super ior-subor dinat er elationshi ps.
7.Itactsasat raininggr oundf ormanagementdev elopment .Itgives
oppor t unitytosubor dinat est ol ear n,togr owandt odev elopnewqual i
ties
andski lls.Itbui l
dsupar eser voi rofexecut ives, whi chcanbeusedasand
whenr equired.

MANAGI NGRI SKSI NBUSI NESS

Riskmanagementi nv olvesthev ar i
ousway sinwhi cht hebusi nessisableto
prev entwhatmaycauseapot ential l
oss.Theway sincl ude:
1.Empl oy i
ngexper i
encedper sonal i.
e.t hoset hatcanpr edictariskysit
uation
2.Mai ntainingandupgr adingt echnol ogysoast ochangewi thchangein
customert aste.
3.Ext ensiv etraini
ngofwor ker s,mor eespeci all
yonr iskcausi ngf act
orsthis
helpst heent erprisetomi nimi zer i
sks.
4.Mai ntainingadequat esecur i
tye. g.byempl oy i
ngsecur i
tyguar ds,
5.I nstall
ationoff ireext i
nguisher s,
6.Usi ngst r
ongpadl ocks,fences, strongdoor setc.
7.Taki ngi nsur ancepol icytocov eragai nstvar i
ousriskse. g.accidents,
diseases, f
ir
eet c.
8.Acqui ri
ngemer gencyequi pmente. g.st andbygener ator
9.Put t
ingswi t
chesi nv isi
blepl aceset c.
10. Pr ov i
dingwr iti
ng( war nings)t oev erycor neroftheent erpri
see.g.along
 t
hewal kway s,buil
ding
Questi
on:
Youarei nvol
vedi nabusi nesst
hati
sdealinginproduci ngandexpor t
ingof
meatproduct sandi thascomet oyournoticet
hatt hereisincreasinglosesi n
thebusiness:
(a)Dev
elopsecur it
yguidel i
nest
obeobserv edbyall worker
si nyourent erpri
se.
(b)Dev
elopsaf etyguideli
nestobefol
loweddr i
versoft heenterprisevehicles.
NB: Whenpr ovi
dinggui deli
nes,
oneshouldmaintain,orusesi mplet enseoruse
thewordshal l
.

PERRYBEATPROCESSI NGI DNUSTRY

P.O.Box78KAMPALA
SECURI TYGUI DELI NES
1.Al lwor kersshal lbetrainedonhowt ousefireext
inguishers.
2.Ev eryv isi
torshal lbethoroughl ycheckedatt heentr
ybyt hecompany
secur i
typersonnel .
3.Al lwor kersshal larri
veat8. 00a.m.anddepar t
ureisat5:p.m.ever
yday.
4.Nowor kershal lbeal l
owedt ocarryhisorherbagbey ondr estr
oom et
c.
5.Al lwor kers`activit
iesshallbeassi gnedbyt hesupervisorandever
yworker
i
st or eporttohi s/hersuper vi
sor.
6.Wor kersshal lbet rai
nedandr etr
ainedonsecur i
tyguideli
nessuchasuseof
protectivegear s.
7.Al lwor kersshal lwearbusi nessuni f
ormt hathavetheirnamesandwor kt
it
le.

PERRYBEEFPROCESSI NGI NDUSTRY

P.
O.Box78KAMPALA
SAFETYGUI DELINESFORDRI VERS
1.Nocompanydr iv
ershallbeal l
owedt odr i
vecompanycarundert heinfl
uence
ofalcohol.
2.Nodr ivershal
l beall
owedt ouseacompanycarunl essauthori
zedbyt he
personi nchargeoft r
anspor t
.
3.Nodr ivershal
l beall
owedt odr iveov ertherecommendedspeedl i
mits.
4.Everydr i
vershallbeencour agedt ouset heseatbel t swheneverhe/sheis
dri
ving.
5.Beforet hecompanyv anisont her oad,itshallfi
rstbeser vi
ced.
6.Allcompanyv ehicl
esshallalway sbei nspectedfrom t i
metot i
met oensure
thattheyareingoodcondi ti
on.
7.Everydr i
vershallobservether oadsignsandi nstruction,wheneverhe/sheis
dri
ving.

PERRYBEEFPROCESSINGPROJECT
P.
O.Box622KAMPALA
SAFETYGUIDELI
NESFORBUSINESSFUNDS
1.Keepi
ngmoneyint
hebank.
2.Keepi
ngdocument
saboutt
hebusi
nessensur
ingpr
opersecur
it
yint
he
 business.
3.Onlyauthori
zedper
sonsar
eal
l
owedt
ouset
hebusi
nessf
unds.

NEGOTI ATI ON
Entr
epr eneur snegot i
atesoast oachi evewhatt heywantwi thoutf earof
confl
ictsormi sunder standing.I tisapeacef ul wayofaccompl ishingt hi
ngs
wit
houtany onebei ngangr y.
Bydef i
nitionnegot iati
oni st hepr ocessofbar gaini
ngt hatpr oceedsorr esul
ts
i
ntoanagr eement .
Negotiationor igi
natedf rom aLat inexpr essionnegotiat eswhi chmeanst ocar
ry
onwi t
hbusi ness.Ther eforenegot iati
oncanal sobedef inedasapr ocessof
di
scussi onbet weent woormor epar t
ieswhoseekt of indasol utiont oa
commonpr oblem i .
e.onet hatmeet stheirneedsandi nt er ests.
Theneedsf ornegot i
at i
on
Therear er easonst owhyi ndividual snegotiatetheseincl ude;
1.Tor eachanagr eementi .e.normal lypeopl enegoti
at ei nor dert or each
concl usi onsandt hishel pst oav oidbias.
2.Tobeatt heopposi ti
on, whent wopar ti
esnegot i
atet her ei sal way sawinner
whoemer gesthebest .
3.Tocompr omi se,thatisnegot iationhelpspeopl etoappr eciat ewhatt he
other spar tyisupt o.
4.Toset tl
eanagr eement , i
.e.oneoft heway stohelpsomeunder standis
whent het wopar t
iesnegot i
at eandt hent heysettl
eaf t eragr eeingbywr i
ti
ng
anagr eement .
Pri
nciplesofnegot i
ation
Negotiationt obeef fectivet heremustbegui deli
nesthatar eaccept ablebyboth
part
ies.Thesei nclude:

1.Youdon’ thav etober i

ghttoset tleint hepr ocessofnegot iati
on,thati sto
sayemot i
onsar isingf rom thef eeli
ngt hatonei sr i
ghttohav enospace
hencewhenei t
herpar tywant stoheari t
sr ight,obsessedwi ththepr incipl
e
thennegot iat
ioni slikel yt
of ail
.
2.Lookt othef uture,ther eisnoneedt obasemai nlyonwhatt ookpl acei nthe
pastbutl ookingf orhowt hecur renti ssuecanbeset tl
ed.
3.Focusont hegoal i.
e.oneshoul dbev eryspeci fi
conwhathe/ shewant sby
oneaski nghim/ her selfwhati st hepur poseoft hi
snegot i
ations.
4.Setthet oneandl ookt hepar t
,i.
e.ther eforet hereisneedf oronet ocr eate
i
nterestinwhatt heot herpar t
yispr esent ingbybei ngknowl edgeabl eabout
theissuebei ngdi scussed, mai ntainingey econt actandagoodl istener.
5.Bepr eparedanddoy ourresear ch,negot i
at i
onr equir
edal otofknowl edge
andski l
l
saboutwhati sbei ngnegot iat edhencei fonei snotpr eparedf orIt,
will
causet henegot i
at i
ontodel aywhi chi snotgood.
6.Knowwhaty ouwantandwhatt heot hersi dewant sbef or
ey ougoi nto
negotiat
ion, i
tisimpor tanttopl anonwhatt ogi veupandwhatnott ogiveup.
7.Alway shav eplanB, itisalway simpor tantt ohav ethesecondal t
ernat i
veso
 thatnegot iationbecomesf lexibleandt hegoal count edi salway sachieved
easi l
y.
Ski
llsnecessar yforef fectivenegot iation
 Listening
 Wr iti
ng
 Knowl edgebase
 Bei ngagoodcommuni cator
 Cont rollingemot ions
 Occasi onal l
yshowi ngangel .
Factorst hati snecessar yf ort henegot i
at i
ont osucceed
1.Negot i
at ionshoul dcomeoutwi t
hacoi n-wi nsi tuati
oni .e.nopar t
yshoul d
wi nofatt heexpenseoft heeachot her.
2.Bot hpar tiesshoul df eel sat i
sfiedwi tht her esul ts,t
hegoal focusedonby
eachpar tyneedst obeachi evedaf ternegot i
at i
on.
3.Uphol di ngemot ional /feelingi .
e.whenangerov erri
desaper sonin
negot iat i
ont hegoal maynotbeeasi lyr eached.
4.Negot i
at ionshoul df ocusonsol vi
ngt hepr obl em athandi .
e.whatever
happenedi nt hepastshoul dnotsur facewhi lenegot iat
ing.
5.Usi ngt henegot iationst yl
esoft heot herpar tytoachi eveposi ti
veoutcome,
negot iat i
onst ylesneedt obel iket hatoft heot herpar tyinthenegot i
ation
other wisei tmaybedi fficulttoachi ev et hedesi redgoal .
6.Bei ngf lexi bl
ei ndemandi .e.somedemandsneedt obegi venupf orthesake
ofposi tiver esultsot herwi senegot iationmayf ailtoachi eveitsint
endedgoal.
7.Alway sbei ngpr epar edt obecompr omi sedi .e.letnotal l t
hedemands
present edbeachi evedi .e.eachpar tyshoul dbef l
exibleinamannert hat
eachpar tywi ns.
8.Alway saski ngr elev antquest ionandquot ingf rom r elevantsour ceof
informat ion.
Featuresofnegot i
at i
on
 Ther emustbeami ni mum oft wopar ties.
 Ther emustbepr e-det ermi nedgoal si nt henegot i
ati
on.
 Ther emustbeanout comei .
e.ther esul t
s.
 Resol ut i
onsandconsensusi sr eachedi swr i
ttendown.
 Thet wopar ti
esmustbewi lli
ngt omodi fythei rposi ti
ons.

Element sofnegot i
at ion
Negotiati
onhast hr
eebasi celement s:
ThePr ocess:Thi sist hewayi nwhi chindiv
idualsnegotiatewit
heachot her.The
processincl udesvarioust echniquesandst rat
egiesempl oyedtonegoti
atei n
Odertor eachasol ut i
on.
Behaviour :Thisref
er stohowt hetwopar ti
esr espondtoeachot herduri
ngt he
processofnegot i
ationi.e.thewaye. g.int
eractwi t
heachot her,
thewayt hey
communi catewitheachot hertomaket hei
rpoi nt
sdear.
Subsistence:Thi sreferstot hegenderonwhi chindiv
idualsnegoti
atei.
e.a
topicf ornegot i
ation.
Stagesi nvolvedi nnegot iation
Fornegot i
at i
ont obeef fect i
v et hef ollowingst ages/ stepsar einv olved:
1.Pr epar ation: Bef orenegot iationt akespl ace, adeci sionneedst obet aken
whenandwher eameet ingi st ot akepl acet odiscusst hepr oblem andwho
i
st oat tend.I tal soi nv olvesset tingal i
mi tt i
mesoast oav oiddi sagreement .
2.Det erminat i
onoft hev enueandi nv iti
ngmember sfordi scussi on: Thisi s
wher eindi vidual sofeachsi dear ei nv i
tedt ot hesetv enue.Thepur poseof
thisist oensur et hateachmemberi sr eachedandagr eedupont heset
venue.
3.Set tingt heobj ect i
v es: Thegoal s, interestandv iewpoi ntsofbot hsidesar e
reconci l
edsucht hatadearsubst ance( goal)i sdrawn.Thi shel pst olistwhat
i
st obedi scussedi nt heor derofpr i
ority.
4.Real negot iationf orawi n- wi nout come: Thisst epf ocusesonsi tuati
onsof
bothpar ti
es, howt heyhav et ogai nposi tivel
yf rom t henegot iationand
alway sawi n-wi nsi t uationi st hebestout comet houghi tisnotpossi bl e.
5.Wr i
t i
nganagr eement :Thi sisachi ev edonceunder st andingsofbot hsi des
viewpoi nt sandi nter esthav ebeenconsi der ed.Itisessent ialtokeepan
openmi ndt oachi ev et hesol uti
onasanyagr eementneedst obemade
perfectlydearsot hatbot hpar tiesknowwhathasbeendeci ded.
6.Impl ement ingt hecour seofact ion: putti
ngwhathasbeenagr eedi nt
o
pract i
ce

Questi
on:
Youintendtoopenupaf actorydeali
ngintheprocessingofhoneyi
nwhicht
he
demandi si
ncreasing;
(a)
Preparegui
delinesformai ntainagoodwor kplacecondi
ti
on.
(b)
Preparegui
delinesfordev el
opinginnov
at i
veabil
it
iesamongworker
s.
(c)
Explaint
heeconomi cf actorthatmayaffectyourbusi
ness.

Sol
uti
on:
PEPPASHONEYPROCESSINGI NDUSTRY
P.
O.Box120,KAMPALA
Pr
ogram f
ornegot
iat
ion
Act
ivi
ty Personin r
emar
ks
charge
Preparat
ionfornegot i
ati
on Ent
repr
eneur
Decidi
ngont hev enue
Invi
ti
ngnegotiatorstothevenue
Setti
ngobjecti
vesf ornegoti
ati
on
Negotiat
ion
Writi
ngagreement s
Implementi
ngt heresoluti
onoft he
agreement

Pr
epar
edby
: si
gnat
ure………….
name……………….
ti
tl
e…………………….

Appr
ovedby
:si
gnat
ure…………….
name………………t
it
le……………….

NATUREOFNEGOTI ATI ON
1.Negot i
ati
oni sabal ancedpr ocessi.e.bothpartiesareonequal l
evelin
termsofi nformation,factsandappr oacheitherpar t
ycangosof tortough.
2.Negot i
ati
oni snotf i
nite;mov escangoi nall di
recti
on.Thi
smeanst hatthere
i
snodet erminedwi nningst r
ategyespeciall
ywhenv ari
ouselementsoft he
sit
uationarenotknown.
3.Bothlearnerspar t
iesant i
cipatesandr eact,
dur i
ngtheprocessofnegot iati
on
result
ingindoubl emot i
vati
on, di
ff
erentbehav i
ourcouldbepr esent
edi n
diff
erentsituati
onhenceanef fect
ivenegotiati
onmustbeaccommodat ive.

Chall
engesi nNegot i
ation
1.Timepr essur e:Timemaybel i
mitedt ogat heral ldet ai
lsr equi redforinor der
tohav eabal ancednegot iation.
2.Infl
uenceofanot herdeci sionmaker :Anent repr eneurmaydel egateanot her
empl oy eet onegot i
ateonhi sorherbehal f,thismakesi tdi f
ficul tt
oachi eve
anagr eementeasi ly.
3.Thedel ayt act:Bossal way sgi veexcusesorkeeponewor kingf oral ong
timesucht hatashor terdi scussi onisr eali
zedandagr eementi sreached.
4.Lastmi nutewav ering: Towar dscompl eti
onofnegot i
ationonepar tymay
bringanewpoi nt,forcingnegot iatort ochangeonal l
owedagr eedposi t
ion.
5.Anear li
erconcessi on:Somenegot i
atorsshowanear l
ieragr eementand
expectt heot herpar tytobehav eint hesameway .
6.Aggr essi vebehav i
our :Suchbehav iourincludebul l
y i
ng, duat tempt stomake
sarcast iccomment sdur i
ngnegot i
ationwhi chmakesdi fficultt oreachan
agr eement .
7.Negot i
atingt heot herpar typr oblem: Somenegot iatorshav econcer nforonly
theirpr oblemst hereforei trequi r
esunder standingandaddr essi ngpr oblems
oft heot herpar ty.
8.Lett i
ngposi t
ionsov erridei nterests.Despi tet hecl earadv ant ageof
reconci li
ngdeeperi nt erestpeopl ehav eabui l
tinbi ast owar dsf ocusingon
theirownposi ti
onsi nst eadt hisleadst oasi tuationorpr e-det erminedr esult
s.
9.Thel inkingl ogic:Thi sisbasedont heassumpt i
ont hatifaper soniscor rect
 i
nonet hinghe/
shemustbecor rectinanother.Thist
heref
orecompr omi
ses
theoutcomeofthenegotiat
ion.
10. Neglecti
ngtheothersi
de’sprobl
em, negoti
ationcanbeeffect
ivewhen
thetwoparti
esinv
olvedintheprocessdon`ttakeintoaccountofeachot
her
probl
em

Way sofov ercomi ngchal l

engesi nnegot i
ati
on
1.Under t
aki ngt rainingi nnegot i
at ionski ll
sbef or et henegot iati
on
2.Sel ect ingat eam wi thknowl edgeofnegat i
on.
3.Cur r
y i
ngoutr esear chont hemat terthatist obedi scussed.
4.Set tingcl earnegot iationgoal s.
5.Bei ngf lexibl edur ingnegot i
at iont ohav ewi n-wi nsi tuat ion.
Personalat tribut esofgoodnegot iators
1.I ntegr ity ,anhonestnegot iat orbui l
dsmut ual trustandcooper ati
on.
2.Empat hy , thisi st heabi li
tyt ounder standt heot herpar t y`spointofv i
ew
3.Pat ience, thi si st hecal m endur anceoft hepr evailingst ateofaf fai rs.This
make
4.Sel fassur ance, negot iatorsal way shav ebel i
ev eofr eachi nganagr eementi n
what ev erci rcumst ancet hatpr ev ailthatistosayt heyhav eabili
ties
5.Sel fconf idence, af eel i
ngofbei ngabet t
ernegot i
at ort hananyot herper son
6.St ami na
7.Tenaci ty
8.I ngenui ty
Negot iat i
ngt act icswi thcust omer s
Todayent repr eneur sar ef acedwi thcompet i
tionandt her eforetheneedt o
creat eagoodr elat ionshi pwi thcust omer s.Thi scanbedonet hr
ought he
foll
owi ngst rat egi esort act i
cs:
1.Communi cat ingf requent l
ywi thcust omers, thisi si nr elationtot hecompany
product s, changesi nt hecompanyact ivi
ti
eset c.
2.Rewar dingt ol oy al cust omer s, thiscanbei nf orm ofr educedpr icest othe
off er.
3.Hol di ngspeci al ev ent s, t
hisi ncl udesmaki ngpar tiest ocust omer ssoast o
hav ef reei nt er act ionwi tht hem.
4.Pr omot i
ngat wowaycommuni cat i
onwi thcust omer s,thehel pst he
ent erpr iset or et aini tsl oyal cust omer sandhencemai nt aini
ngsal es
5.Pr ov i
di ngser v icest hatsat i
sf ycust omer s`needs, thi smakest hebusi nessto
hav er oom t onegot iatewi thcust omer sov ert hequal ity,quant i
tyandpr i
ce.
6.Launchi ngmul ti
cul tur al progr ams, forexampl eof feringl ocal l
anguage
transl at ors. t hishel pt odev elopgoodr el
ationshi pwi thmi nor
itygr oups.
7.Vi si ti
ngcust omer s, f
orbusi nessest hatdeal i
nt hepr ov i
sionofser vicesand
goods, it’si mpor tantt ogobey ondt hestandar dsal escal l
sandof ferthe
shel fmar ket ingt ool st obui ldr elat i
onshipswi tht opcust omer s.
8.Pr ov i
deav ar iet yofgoodsandser vices;thisr educest hepossi bilityof
cust omerdi sappoi ntment s.
Negot iat i
ngwi thempl oy ees
Thebasicr ulesoft henegot i
ati
onwi thempl oy eesi nclude;
1.Balancebot hst rengt handweakness, i.e.adi r
ectappr oacht oempl oyeesis
i
mpor tant
2.Li
stenact ivelyt owhatempl oy eeshav et osay
3.Alwayshav eaf all
backposi ti
onwhennegot iati
ngwi thempl oy eesov ersalary
i
ncrease
4.Makeconcessi onst ogether
5.Takenot eoft heempl oyeeexpr essionst hati sint ermsf acialexpr essi
ons
phrasesbei ngusedet c.
6.Aim atcr eat ingwi n-
wi nsituati
on, thi
sensur est hatt het wopar tiesar e
sati
sfi
edwi tht heout comef rom t henegot iationpr ocess.
Sal
arynegot iationwi thempl oyees
1.Setceilingwage, thi
shel psanent erpriset onegot iat ewi thi
nt hewagel imi
t .
2.Setaf l
oor , thisr eferst othelowestwageamountt hatanent er priseintendto
spendt oanempl oyee
3.Determi ningt heamountofwageei t
herperhourorperday .
4.Makingsal ar ynegot iati
onat tr
act i
ve,thisi senhancedbydesi gni ngbenef i
t
packagesandal l
owancesatacompet i
tivemar ketl evel.
5.Formul ateempl oy eecont ractst hatarewi t
hi nthecommonempl oy ment
l
awsoft hecount ry,thisensurest hatissuesoft akingt hebusi nesst ocourt
i
sav oided
6.Keepempl oy eeneedsi nthemi ndsbef oreanycompensat i
onpackages

BUSI
NESSETHI
CS
Ethi
csareasetofmoral
pri
ncipl
eswhi
charer
ecogni
zedi
nrespectt
oa
part
icul
arcl
assofhumanact
ionsorgr
oup
Businessethi
cs,t
hesearevi
rt
uesorv aluesornormst hatbusi nessshoul
d
conductthemselv
estowardscustomers,empl oy
ees,society ,gov
ernmentand
fel
l
owbusi nesspart
ner
sorcompet it
ors.Theyarethosev irtuesthatbusi
ness
peoplesapplywhenmakingbusinessdecisi
ons.Thesev aluesgui demembers
ofthegrouptoactinamannerthatisconsistentwi
tht hev aluesandstandar
ds
asestabli
shed.
PRI
NCI
PLESOFGOODBUSI
NESSETHI
CS
Et
hicalpr
inci
plesar
ethev
aluest
hatsett
hegr
oundr
ulesofal
lthatwedo.The
et
hical
princi
plesar
e
 Honesty
.Anentrepr
eneurshoul
dbeopenandfr
eel
yshar
ei nf
ormat
ion.He
shoul
dn’tsayt
hingt
hatarefal
seordel
i
ber
atel
ymisl
eadothers.

 Promi
sekeeping.Onewi
llnotmakepromi
sesthatcannotbekeptandwil
l
notmakepromisesonbehalfoft
hecompanyunlesshehastheauthor
it
yto
doso.
 Fai
rness.Anentr
epreneurshouldcreat
eandfol
lowapr ocessandachiev
e
out
comest hatareasonabl
eper sonwouldj
ustcal
l.E.g.equaltr
eatmentof
workers,
li
kegiv
ingthem afairpaydependi
ngonst i
pulatedcondit
ions

 Respectforot
hers.I
t’
si mport
antforonet
ohonourandv al
uetheabil
i
ties
andcontri
buti
onsofot her
s,embraci
ngtheresponsi
bil
i
tyandaccount
abil
ity
forouracti
onint
her egard

 Compassi
on,oneshoul
dmaintai
nanawar enessoftheneedsofother
sand
actt
omeetthoseneedswheneverpossi
ble.Theyshoul
dmi ni
mizeharmi
n
soci
ety

I
ntegrity,
onewi l
lal
waysliveuptoet
hical pr
incipl
es,
evenwhenconf r
onted
byper sonal
,prof
essi
onalandsocial
risksaswel l
aseconomicpressur
e,e.
g.
thehikingrat
eofinfl
ati
ondoesn’tmeanr educingworker
’ssal
ari
esor
producingpoorquali
typroduct
s.

 Cooperati
onorteam work,
anentr
epreneurshouldbeablet
osuppor
tactsof
otherbusi
nesspart
nersandworktogethertoachi
evethecommongoalsof
theindust
rye.
g.duri
ngstri
keduetohightaxes.

 Lawabi ding.Et hicalent repreneur sabi debyl aws,r ul

esandr egul at
ions
rel
atingt otheirbusi nessact iviti
es.
 Commi tmentt oexcel l
ence.Et hical entrepreneur spur sueexcel lencei n
perf
or mingt heiract i
viti
es, arewel linformedandpr epar ed, andconst antl
y
endeav ortoincr easet hei rknowl edgei nallar easofr esponsi bili
ty .
 Reput ationandmor ale.Et hical ent repreneur sseekt opr otectandbui ldthei
r
businesses’ goodr eputat i
onandt hemor aleofi t
sempl oy eesbyengagi ngin
noconductt hatmi ghtunder mi ner espectandbyt akingwhat everact i
ons
necessar ytocor rectorpr eventi nappr opriat econductofot hers.
 Account abil
ity.Ethical ent r
epr eneur sacknowl edgeandacceptper sonal
account abil
it
yf ortheet hical qual i
tyoft heirdecisionsandomi ssionst o
themsel ves,theircol l
eagues, thei rcompani es,andt heircommuni t
ies.

PARTI
ESTOBUSI
NESSETHI
CS
 Thecl
i
ent
sorcust
omer
swhodeal
int
hebusi
ness

 Empl
oyeeswhoar
eempl
oyedbyt
hebusi
ness

 Gover
nmentoft
hecount
ryoraut
hor
it
yinwhi
cht
hebusi
nessact
ivi
ti
est
ake
pl
ace

 Busi
nesseswhi
chcompet
eswi
tht
heent
repr
eneur
’sbusi
ness
 Thesoci
etywi
thi
nwhi
cht
hebusi
nessoper
ate

 Thesuppl
i
ersofi
nput
s

BUSI
NESSETHI
CSTOWARDSCUSTOMERS
 Honesty.Anentr
epreneurissupposedt
obehonestt
ohi
s/hercust
omer
s,
thi
swilli
nvolv
echargingfai
rpri
cesfort
hegoods,
goodqual
it
yand
aff
ordablequant
it
iesetc

 Endeavourtoseekandanaly
zetheneedsofcust
omersandmaki ngsur
e
thatgoods/
servi
cesprov
idedconf
ormt ot
hoseident
if
iedneedsof
customers

 Courtesy.Thisinvolvespoli
teness,pat
ienceandsinceri
tywhendeali
ngwit
h
customer s.Anent r
epreneurshouldalwaysputhis/hersel
fincust
omer’
s
shoes,forinstanceonei snotsupposedt osel
lunderweightandexpi
red
goodst ohiscust omers

 Anent r
epreneurshoul
densuret hatthegoodsorservicesprovi
deddonot
haveanynegat i
veimpactont hecustomer s,f
ori
nstanceapr of
essional
doctorornurseshouldnotsellexpi
reddr ugstopat
ientsorhiscli
entsince
theywill
affectt
heirl
ivesi
nsteadoft reat
ingthem

 Genui netocust
omers.Anentrepreneurshoul
dbekind,cheerful
andshoul
d
al
way str
ytocontr
olhis/
hertemper swhendeali
ngwithcli
ents/cust
omers,
shouldnotuseabusivelanguageorshoutatcustomers,he/sheshoul
d
i
nst eadtryt
omaket hem underst
andwhathe/ sheneedsincaseofany
discrepancy

 Provi
sionoftherequi
redinfor
mat i
ontot
hecli
entsorcust
omersontheuse
oftheproducts/
servi
ces.Inst
all
ati
on,
maint
enanceandotherl
i
kelyi
mpacts
ofusingtheproduct

 Responsi
bil
ity
.Anentrepr
eneurshoul
dt r
ytomeethi sobli
gati
onsasagr
eed
on,fori
nstancehe/sheshoul
dfulf
il
lhiscontr
actualobl
igati
onsonagr
eed
ti
me,deli
veryonti
meandf ulf
il
lhi
s/herpartofthedeal/
bargain

BUSI
NESSETHI
CSTOWARDSEMPLOYEES
I
norderforanent
repr
eneurtotr
eatt
heempl
oyeesi
nanet
hical
manner
,the
f
oll
owingshoul
dbehighlyobser
ved
o Throughgi
vi
ngthem af
airpay.Pay
menttoemploy
eesshoul
dbefairi.
e.in
rel
ati
ontohisv
aluei
nbusinessandamountofwor
kdone.Oneshouldalso
 consi
dert
heseni
ori
ty.Exper
ience,
responsi
bil
i
tyet
coft
heempl
oyeewhen
deter
mini
ngt
hepayment

o Shoul
dprovidecl
earandfai
rtermsofempl oy mente.g.employ
eesshoul
dbe
giv
enappointmentl
ett
ersstat
ingwhet hert
heyar eemployedonpermanent,
tempor
aryoronacont r
actbusiness.Thesalaryorwageshouldbespecif
ied
aswellasduti
esandresponsi
bili
ti
es

o Ensuri
ngj obsecur
it
yofanempl oyee.Asi ti
stheri
ghtofanemployeeto
knowt hetermsofempl oyment,forinstance,
itcanbeonapermanentbasis,
temporaryorcontr
actualform ofempl oymentwhichhel
psonempl oyeet
o
planaccordingl
ye.
g.ifiti
sacont ractbased,oneshoul
dprepar
et olookf
or
anotherjobwhenthet erm ofcontr
actisending

o Provisi
onofgoodwor kingcondi t
ions.Si
nceempl oy
eesspendmostoft heir
usefulti
meatt hei
rwor kpl aces,t
hewor kplaceshouldassureahealthyli
fe
duri
ngandaf t
erst ay
ingatt hebusiness,suchcondi
ti
onsmayi nclude
prot
ectiveworkingclothes, hel
met s,
glovesetcgoodtransport
,feedi
ng,
accommodat i
on.Medi cal careandot herall
owances

o Thereshouldbeconstantar
rangementf
orpr
opertrai
ningandeducati
onof
worker
s,thi
swilli
mprov eonthei
rski
l
lsi
noperat
ingtheirbusi
nessact
ivi
ti
es
whichimproveperf
ormance

o Li
steni
ngtoemployee’
sper
sonalprobl
emsandcompl ai
nts,
throughthi
s,an
ent
repr
eneurcanhelpi
nsol
v i
ngorassist
ingthem wherenecessaryt
hrough
gi
vi
ngt hem af
for
dabl
eandrel
evantsupportt
ot hem

o Poli
tenessi.
e.worker
sshouldbetr
eatedi
napolit
ewayinallsi
tuations,t
his
al
soi nvol
vesthosesi
tuat
ionswher
eemployeesgowrong,f
orinstanceleta
si
nglemi st
akemadebyanempl oyeenotmakeanent
repreneurforgetthe
goodt hi
ngsmade/hehasmade

o Creati
ngar oom forcreati
vi
ty.Employeesshouldbetreat
edashuman
beingswhohav ether i
ghttothinkandacti.e.t
heyshouldbegi
venachance
toexerciseact
ivi
ties,
thismayl eadtoimprovedser
vicesandpr
oduct
ivi
tyto
thebusiness

o Respect,t
heentr
epr
eneurshouldrespectt
heemployeesfort
hecont
ri
buti
on
theymaket ot
hebusiness,f
ori
nstancetheent
repr
eneurshoul
dnot
publi
cal
lyabuseemployeesandthenormsofthesociet
yofthear
eashoul
d
berespectedwhenhandli
ngemployees
o pr operr
ecogni
ti
onofhardworki
ngemployees,
appr
eciat
ionand
encouragementofspeci
alski
l
lstocapabi
li
ti
esofworker
s,thi
sincr
eases
theirmoral
eanddevoti
onstothei
rworkinbusi
ness

BUSI
NESSETHI
CSTOWARDSTHESOCI
ETY
o Conservi
ngt
heenvi
ronment.Thebusi
nessshoul
dendeavort
ot akeall
the
necessar
yst
epsneededtoconser
vetheenvi
ronmente.
g.tr
yingallt
he
necessar
ywaysofcont
rol
li
ngpoll
uti
oni.
e.i
nair,
waterandswamps.

o Thebusi
nessshouldendeav
ort oprotectpeopl
e’
shealt
handli
vesdur
ingi
ts
oper
ati
onsli
keavoidi
ngemitti
ngpoisonousandt oxi
csubst
ances,
cont
rol
li
ngmachinerynoi
se,explosi
onet c.

o Abusinessshouldhavestr
ictconsider
ati
onsforthenorms,fori
nst
ance
dur
ingbusinessacti
vit
iesi
nwhati sacceptabl
etothecult
ureorrel
igi
ous
bel
i
efsofthesoci et
yli
keputti
ngupadi sconearasecondaryschool,
sel
li
ng
por
kinaMusl im community.

o Abusinessisalsoexpectedtogeti
nvol
vedandcontri
butetotheneedsof
thesoci
ety,
likecontri
buti
ngtocommunityheal
thcent
res,community
devel
opmentl i
kecleaningorr
oadconst
ructi
on.

o Abusinessisal
soexpectedtopr
ovi
deemploymentopport
uniti
estothe
communi t
ymember si
nsteadofgi
vi
ngthem outt
oforei
gnersi.
e.i
ncase
theyfi
tint
heexist
ingopport
uni
ti
esint
ermsofquali
fi
cati
on,exper
ienceand
skil
l
s.

BUSI
NESSETHI
CSTOWARDSGOVERNMENT
o Complyingwi
ththelawsthatgovernthebusi
nessl
i
ker
egi
str
ati
onl
aws,
l
icensi
nglaws,l
abourlaws,occupat
ional
hygi
ene

o Observ
ingandsett
ingthetaxobl
igat
ionasr
equi
redbylaw,
iti
samustf
or
ent
repreneurt
opaytaxesandtheyshoul
dbepai
dont i
meandinf
ull

o Businessesshouldfoll
owthegov er
nmentpoli
ciesintheiroperat
ionsli
ke
sel
li
ngpr oductsthatar
eacceptablebythegovernment,shouldavoid
engaginginil
legalcommodit
iesli
kef i
rearms,
expiredcommodi t
iesetc

o Thebusinessshouldmeettheproduct
ionst
andardsinter
msofquali
ty,
weightsetc,
dishonest
yactsl
i
kechargi
ngtheweighingscal
esi
norderto
exploi
tconsumersshouldbeavoi
ded

o Thebusi
nessshoul
dal
socompl
ywi
thoccupat
ional
hygi
ene,
env
ironment
al
 r
egul
ati
onset
caspr
escr
ibedbyt
hecent
ral
andl
ocal
gov
ernment

Busi
nesset
hicst
owar
dssuppl
i
ers
 Pay
ingt
hem pr
ompt
ly

 Of
fer
ingt
hem af
airpr
ice

 At
tendi
ngt
othei
rcompl
aint
s

 Respect
ingt
het
ermsandcondi
ti
onsoft
het
ransact
ions

Busi
nesset
hicst
owar
dscompet
it
ors
 Ensur
ingf
airt
radi
ng

 Ant
i-
compet
it
ivepol
i
cies

 Mer
gingwher
epossi
ble

 Gi
vi
ngr
efer
ral
sinf
avourofcompet
it
ors

I
MPORTANCEOFBUSI
NESSETHI
CSTOBUSI
NESS
 Hel
pstheent
repr
eneurt
obetrust
fulbyre-
organi
zi
ngthatacust
omeri
sthe
ki
ng.Thi
shel
pstomaint
ainandatt
ractnewcustomer
s

 Enabl
esbusi
nesspeopl
etomeetobligati
onsoft
hei
rcust
omer
sand
busi
nesspar
tner
sregar
dlessofany
thingelse

I
ncreasesbusi
nessturnoverengagi
nginfai
rtr
adingact
ivi
ti
esl
ike
guarant
eei
ngasaferplaceforyourempl
oyees,f
airpr
ici
ngfory
ourpr
oduct
guarant
eeahighbusinesstur
nov er

I
ncr
easesbusi
nessprof
it
swhenabusi nessthatpr
act
icesbusi
nessethi
cs
t
owardsit
scust
omers,i
tstot
alsal
esincreasesaswel
l asi
tspr
ofi
ts.Thi
s
f
aci
li
tat
esbusi
nessgrowthandexpansion

I
tleadst or
ecogni
ti
onfrom t
hesociety.Bei
ngethi
calasabusi
nessperson
bui
ldst hei
mageofreli
abi
li
tyandestabli
shesr
eputat
ionwit
hbetween
businessandit
scustomers.

I
tleadstoeasyaccesstohumanresour
cesthr
oughgai
ninggood
r
eputati
onwhichenables,
itt
ogethumanresour
cest
owor kfori
t

Itl
eadstoeasyaccesstoinput
sli
keraw-
mat
eri
als.Bypr
acti
ci
ngbusiness
ethi
cstosoci
ety,
thebusinessear
nsagoodr
eputati
onwhichenabl
esitto
gethumanresourcestoworkfori
t.
I
tenabl
esthebusinesst
owingover
nmentsuppor
t.Honestbusi
nessat
tract
t
hegovernmentsupport
sandsympathyi
nter
msofneeds

Dev
elopi
ngabusi
nesscodeofconduct
Al
lempl
oyeesshal
ldr
essdecent
lyi
n……….
Ar
ri
val
anddepar
tur
eti
meshal
lbe……….
.
Wor
ker
sshal
lkeepcompanyi
nfor
mat
ionsecr
et.
Allworker
sshal
lconductt
hemsel
vesinamoral
l
yaccept
abl
eway
sas
descri
bedbythecompanycodeofconduct
.
Wor
ker
sshal
lnotbeal
l
owedt
oengagei
nsexual
har
assment
.
Al
lworker
sshal
lhandl
ebusinessasset
swi t
hcareanyl
ossari
si
ngfrom
mi
shandli
ngoft
hepropri
ety
, t
hepersoninchar
geistopayf
orthedamage.
Workeri
nacompet ingbusi
nessshallnotberecruiti
ntothebusi
nesswor
k
f
orcenotunti
ltheyprovi
deter
mi nat
ionlet
teroranyotherinf
ormthati
ndi
cat
e
t
hattheyar
enol ongeremployeesofthatbusiness.
Noworkershal
lbeal
lowedouseanydr
ugorint
oxi
cat
ingdr
inkt
hatmayi
mpai
r
hi
sorhersenseofj
udgmentwhi
leatwork.
Worker
sshallnotbeal
lowedtousebusi
nessnamef
orper
sonal
act
ivi
ti
est
hat
ar
enotrel
atedtothei
rworkti
tl
e.
Wor
kingday
sshal
lbe…………
Unet
hicalbehav
ior
spr
act
icedbyent
repr
eneur
sinUganda
1.Sel
l
ingt
ocust
omer
sgoodst
hathav
eexpi
red
2.Usi
ngwr
ongmeasur
ement
s
3.Abuseofcust
omer
sint
ermspr
icenegot
iat
ion
4.Fal
sedecl
arat
ionofbusi
nessassetv
alue
5.Usi
ngunqual
i
fiedper
sonnel
6.Pay
ingwor
ker
slowwagesbel
owgov
ernmentwage
7.Expl
oit
ingconsumer
sbychar
ginghi
ghpr
ices
8.Ev
adi
ngt
axes
Dev
elopacodeofconductf
orr
est
aur
antwai
tr
ess

COMMUNI
CATI
ONSKI
LLS
Strongbusi nesscommuni cat
ionskill
sarecr i
ti
caltothesuccessofany
organizati
ondespi t
eitssize,geographicallocati
on,anditsmi ssion.Busi
ness
communi cati
onisintert
winedwi ththeinternalcul
tureandext ernalimageof
anyorgani zati
on;i
tthereforedetermineswhatt ocommuni cate,bywhom, and
whatlev elinanorganizati
on.Hencegoodcommuni cati
onpr acti
cesassistthe
organizati
oni nachi
ev i
ngitsobjectiv
esbyi nforming,persuadingandbui l
ding
goodwi llwithi
nbotht heinter
nal andexternalenvir
onment .
Communicat
ionr
efer
stotheprocessofconveyi
ngortransmi
tt
ingamessage
fr
om oneper
sontoanot
herthr
oughapr operchannel
.
Orcommuni
cat
ionr
efer
stogi
vi
ngandr
ecei
vi
ngi
nfor
mat
ionandf
eedback
El
ement
sofcommuni
cat
ion
1.Sender
,thepr ocessofcommunicati
onbeginswi
ththeper
sonwhom t
he
messageor i
ginates,
whohasani dea,pur
poseori
nfor
mati
onfor
communi cat
ingt hei
deaisi
nfl
uencedbythe;
 Mood
 Fr
ameofr
efer
ence
 Backgr
ound
 Cul
tur
e
 Andphy
sical
makeupoft
hesender
 Thesi
tuat
ioni
nfl
uenci
ngt
hecommuni
cat
ionet
c
2.Encoding,
aftercominguptheidea, t
hesendconv ert
st heideaint
owor dsor
gestur
esthatwillconveymeaning.Inselect
ingsymbols,thesendermustbe
al
erttothereceiv
er`scommunicationskill
s,at
ti
tude,background,exper
ience
andcultur
e.Encodingresul
tint
oamessagewhi chcanbev er
balor
nonverbalt
hiscanbei nt
endedoruni nt
ended.
3.Medium,t
hesendmustappropr
iat
elysel
ectt
hemeansthroughwhichthe
messagei
stodeli
ver
.Thechannelt
hatistobeusedi
sinf
luencedby;
 Thepur
poseoft
hecommuni
cat
ion
 Abi
l
ityoft
heencodert
oef
fect
ivel
yuset
hemedi
um
 Theef
fect
ivenessoft
hemedi
um t
odel
i
vert
hemessage
4.Recei
ver
,therecei
verdecodethemessagethati
stosayt
ransl
ati
ngt
he
messagefrom i
tssymbolformint
omeaning.
5.Feedback,
thi
sisr
esponsetothemessage.I
ttel
l
sthesendert
hatthe
messagehasbeenrecei
vedandunderst
oodandthepurposef
ulf
il
led,
 whet
heri
tist
oper
suadeori
nfor
msort
hegoodwi
l
lreasons.
CHANNELSOFCOMMUNI
CATI
ON
Inf
ormat
ioni
nanent
erpr
isesf
lowst
hroughf
ormal
andi
nfor
mal
communicat
ion.

FORMALCOMMUNI
CATI
ON
Itf
oll
owsor gani
zation’
shier
archyofcommandf l
owingi
nvari
ousdirecti
onsfor
thepurposeofeffecti
vedeli
veryofthei
ntendedinfor
mati
on.Off
ici
al
communi cati
ontypical
lyf
lowsthroughf
or malchannel
sinthr
eedir
ectionsthat
i
s:
 Downwar
d
 Upwar
d
 Hor
izont
al
Downwar
dcommuni
cat
ion,
Thi
sisinformationandmessagessentf rom t
opmanagementt osubordinates
i
nanor ganizat
ionthroughestabl
ishedhi
erar
chy.Thisisi
ntendedtodirectthe
act
ivi
ti
esofempl oy
ees,inst
ructt
hem int
obehav i
orsandwor kmethods,and
per
suadet hem toadoptcertai
nideasandatti
tudes.
Upwar
dcommuni
cat
ion
Thi
sisthet y
peofcommunicati
onwherei
nfor
mati
onfl
owsfr
om subor
dinat
es
tosuper
iorsandcont
inuesupwardst
hehi
erar
chy
.Thepur
poseofupward
communi cat
ioni
s;
Topr
ovi
demanagementwi
thf
eedbackonpr
oduct
ionper
for
mancet
asks.
Togi
vemar ket
ingi
nfor
mat
ioni
nrel
ati
ont
oconsumer
`sr
eact
ionsaboutt
he
newproducti
fany,
Foranyupwardcommuni cati
ontobeeffect
ivether
eshouldbeanenvir
onment
i
nwhi chthesubor
dinat
esfeelfr
eeoftheirf
reedom ofcommunicat
ionor
expr
essiontothei
rsuperi
ors.
Hor
izont
alcommuni
cat
ion
Thi
sinv
olv
esthef
lowandt ransmissionofinfor
mationamongpeopl
ewith
sameorsi
mil
aror
ganizat
ionallevelanddiagonalf
lowwithpeopl
eatdi
ff
erent
l
evel
swhohavenodir
ectreportingrelat
ionshi
p
I
NFORMALCOMMUNI
CATI
ON,
thesechannel
sareusual
lybasedonsocial
relat
ionshipsinwhichindiv
idual
s
tal
kaboutworkwhentheyarehavi
nglunch,workingout,sport
ingetc.t
his
communicati
onoperat
eoutsi
detheformalorganizat
ion`shier
archyofauthor
it
y
Pri
nci
plesofeff
ect
ivecommuni
cat
ion/gui
del
inesf
oref
fect
ive
communicati
on
Li
keanyot
herdi
sci
pli
ne,
eff
ect
ivecommuni
cat
ionhascer
tai
npr
inci
pleswhi
ch
i
nclude
1.Clari
ty,t
hemessageconveyedmustbeorgani
zed,
loudandcl
earl
eavingno
room foranydough.
itshoul
dhaveawell
thoughtt
hroughi
ntr
oduct
ion,
detai
ledbodyandasmar tconcl
usi
on.
2.Consi
stence,t
hesendershoul
dbeconsi
stenti
ntheuseofchannel
andt
he
codet
hr oughwhi
chheiscommunicati
ngthemessage
3.Concr
eteness,
iti
sadvisabl
etoor
gani
zet
hecommuni
cat
ioni
nlogi
cal
mannerandcoherent
4.Courtesy,thecommunicat
orshouldnotber
ude,shouldcommunicat
e
poli
tely.Themessageshouldhaveagoodtoneabletomaint
ainandbui
l
d
rel
ationship
5.Consi
derat
ion,pl
ancar
eful
l
yandtr
ytounderstandtheinf
ormat
ionneedsof
ther
ecipi
ent.Beempat
heti
coft
hereci
pient
,thisenabl
esyouunder
standthe
message.
6.Conciseness, ef
fect
ivecommuni
cati
onshoul
dbebri
efandst
rai
ghtf
orward
tothepoint.Thesendermustbeclearandpr
oper
lyf
ocusedt
othepurpose
ofcommuni cati
on
7.Completeness,t
hemessageshoul
dhaveallt
henecessar
yinf
ormati
one.g.a
not
iceforameet i
ngshoul
dhavethedat
e,day,t
ime,v
enueandpurposeof
communi cat
ion.
8.I
nterestandaccept
ance,t
hesendermustensur
ethatadequat
einter
esti
s
generatedamongthereci
pientoft
hemessageandthatt
heyarereadyto
maker epal
y.
9.Env
ironment
,thesendershoul
densur
ethatt
her
eci
pientr
ecei
vet
he
messageasrequi
red.
10. Distr
ibut
ion,t
hecommunicati
onshoul
dbeaddressedt
othosewhoare
supposedtohaveit
.Thereshoul
dbeasystem t
oensuret
hatwrongpeopl
e
don’
taccesst ot
heinf
ormati
on
11. Si
mplici
tyofthelanguage,t
hesendermustkeephi
slanguageassi
mple
aspossi
blekeepinginmindthereci
pientst
andar
dofknowledgesot
hatt
he
 messagei
scl
ear
lyunder
stood.
12. Timi
ng,themessageshoul
dbeconv
eyedatat
imewhent
her
ecei
veri
s
abl
etoli
stenandrecei
vei
t.
13. Media,
thesendermustuseamediat
hatt
hetar
getrecipi
entuses.
eg
newspaperswhencommunicat
ingt
otheel
it
eofurbanareas.
14. Control
l
ingEmotions,
emotionspl
ayanimport
antr
olei
nint
erper
sonal
rel
ati
onshi
psbetweenthesenderandther
ecei
ver
I
mpor
tanceofcommuni
cat
ioni
nabusi
ness
1.It
’susedtopassonrel
evanti
nfor
mati
onal
lthet
imet
otheconcer
nedpar
ti
es,
e.g.i
ncr
easeinpri
ceofaconsumerpr
oduct
.
2.I
thel
pstheent
repr
eneurtor
ecrui
tandselectwor
kers.Thi
sisdoneby
publ
i
shi
ngthej
obadverti
sementandint
eresti
ndi
vidual
sapply
.
3.I
t’
susedtoimpl
ementbusinesspol
i
cies.Thisisachi
evedbygi
vi
ng
i
nstr
uct
ionstot
hesubor
dinates,
andtheirsuperv
isor
s.
4.Ithel
psent
repr
eneur
stonegot
iat
ewi
thcust
omer
sandsuppl
i
ers.E.
g.about
contr
act
s
5.I
t’
susedinkeepinggoodr
elat
ionshi
pswi
thol
dcustomersandcr
eati
ngnew
ones.Thi
sisachiev
edbyf
requentl
ycommuni
cat
ingtocustomer
s.
6.I
thelpst
heent
repreneurt
omakedecisi
onsf
rom ani
nfor
medposit
ione.
g.
wri
tt
encommunicati
oncontai
ndet
ail
sofwhathasbeenagr
eedon.
7.I
thel
pstheentrepreneurt
ocoor
dinat
eoper
ati
onsoft
hebusi
nessexecut
ed
bydi
ff
erentdepart
ment s.
8.I
tisusedt omakethegeneralpubl
ict
obeinfor
medaboutwhatthebusi
ness
of
fers.Forexampl
ethenatureofthenewproductt
othegener
alpubl
ic.
9.I
thel
pst hegover
nmentandotherr
egul
ator
yor
gani
zat
ionst
omoni
tor
,gui
de
ordi
rectbusi
nessoper
ati
ons.
10. Itpr
ovidesapermanentpoi
ntofr
efer
enceforf
uturebusi
ness
t
ransact
ions.egt
hewrit
tencommunicat
ioni
nform ofminut
es.
11. It
shel psanentr
epr
eneurt
oest
abl
i
shabusi
nessi
dent
it
y.e.
g.t
hrough
regi
ster
ingthebusi
ness
Bar
ri
erst
oef
fect
ivecommuni
cat
ion
1.Inconsi
stenti
nthecommunicat
ion,
e.g.v
erball
anguagesandnonv
erbal
expressi
onswhichcont
ract
swithvoicet
one,bodyl
anguage.
2.Ti
mepressur
e,i
.e.manager
sdon’
tenought
imet
ocommuni
cat
efr
equent
ly
wi
thev
erysubor
dinat
es
3.Languagedi
ff
erences,
thi
sleadst
omi
si
nter
pret
ati
onoft
hemessage
4.I
nadequat
epr
epar
ati
onf
orcommuni
cat
ion
5.Noi
se,
thi
sleadshear
ingofv
erbal
for
m ofcommuni
cat
ion.
6.Accent
,thi
sleadst
odi
stor
ti
onofmeani
ngofagi
vencommuni
cat
ionf
orm.
7.Obsol
escenceofi
nfor
mati
on,
ifinformati
onisnotacqui
redatt
her
ightt
ime
whenneeded,i
tmaybecomeir
relevantandunusabl
e
8.Themoodofther
eceiv
er,whenther
eceiv
erisnoti
nter
est
edi
nthe
communi
cat
ionhencegiv
inglowatt
ent
ion.
9.Useofinappr
opri
atechannel
sofcommuni
cat
ion,
thi
smayl
eadt
omi
sst
he
tar
getgroupoft
hecommuni cat
ion.
10. Themessagebei
ngi
ncompl
ete,
TYPESOFCOMMUNI CATION
Ther ear ebasi cal l
yt wof ormsofcommuni cati
onski l
ls;howeverthethirdone
hasbeenadded:
1.Or al communi cati
on
2.Wr ittencommuni cat
ion
3.Vi sual communi cati
on
Oralcommuni cat ion
Thisi st het ypeofcommuni cationwhi chisof t
enusedwhenbar gai
ning,during
i
nter views, t
rai ningandmeet i
ngs.I tinvolvesadi scussi onbetweencust omer s,
wor ker sorsuppl iers.Thismet hodofcommuni cat i
ont endstomi ni
mize
chancesofcommuni cati
onbr eakdowns, ther eceiverhasachanceof
i
mmedi ater esponseandwher enecessar yqual i
fi
cat ionismade.
Wr i
ttencommuni cat i
on
Wr i
tingi sapr esent ationofletter,fi
gur e,wor ds,phases, sent
ences,paragraphs
etc.itinv olvest hinkinganddet ermi ningofhowt hel ett
ers,fi
gur
esorwor dsare
tobeusedt ocommuni cat
et hei deast oot herpeopl emor emeaningfull
y.
Wr i
ttencommuni cationtakest hef oll
owi ngf orms:
 Busi nessl et t
er
 Memo
 Ci rcul ar
 Repor t
s
 Not ices
 Bul l
et ins
 Mi nut es
Adv ant agesofwr i
ttencommuni cation
I tpr ov idesaper manentr ecor dnecessar yforr eference.
I tenabl est hecommuni cat ort odev el opanor ganizedandwel l delivered
message.
I tisaconv eni entf orm ofcommuni cat i
on.
Disadv ant agesofwr i
ttencommuni cat ion
I trequi rescar ef ul prepar at i
onandsensi tivi
tytoaudi ence.
 Wor dsspokeni nt heconv ersat i
onmaysoonbef or gottenbutwor ks
recor dedbecomear ecor d.
I t’
smor edi fficul tt opr epar ee. g.wr iti
ngt hemi nutes.
 Theyar emor ecost l
y,thisi si nt ermsoft imeandmoney .
 Ther ei sl esspossi bil
ityoff eedbackmor eespeci allywhent hel anguage
usedcannotbeunder stoodbyt her ecei ver.
NB: Wr i
ttencommuni cat i
oni sbot hext ernal andi nter nal.
VisualCommuni cat ion
Thisi saf orm ofcommuni cat ionwher et heent repreneurpr esent sinf ormat ion
usingdi agrams, pict ureswi thoutnecessar yusingwor ds.Theset aket hef orm
ofpost ers, graphs, pi echar tset c.Thesear eusedt odepi ctdi f
fer entsi tuations
i
nbusi nesssuchasbusi nessgr owt h, trends, composi tionofsal es, cust omer
satisfact i
on, productper formanceet c.
Organi zat ionalChar t
Organi zat i
onchar tsar eusedt oshowt heor ganizat i
onst ructureoft hebusi ness.
Itshowshowdi ff erentsect ionsoft hebusi nessorst af frelatet oeachot heror
repor ttoeachot her .
UsesofOr gani zat ionSt ruct ur e
I tprov idesi nf or mat i
ononwhot or epor tt o.
I tisuseddur i
ngt hepr ocessofi nt r
oduci ngnewwor kersi ntot he
organi zat ion.
I tisusedt odet er mi newagesandsal ariest odi f
ferentposi tionsi nan
organi zat ion.
I tisusedt odet er mi nedut ies, responsi bili
ti
esofeachposi t
ioni nan
organi zat ion.
I tisusedt odet er mi net het ot al numberofwor kersneededi nanent erprise
i.
e.admi nistr at ors.
I tprov idest heabov ef ordet ermi ningt hebusi nessexpendi tureont op
management .
Dr awor gani zat ionalchar tofy ourbusi ness
Phot ogr aph
Thesear eusedt oi llustrat egi veni nf ormat ionsoast oi ncr easet her eader ’s
appr eciationandunder standi ng.Mostbusi nessadmi nistratorsusecapt ive
phot ogr aphst oadv ertiset hei rphot ogr aphs.
Fil
msordocument ar ies
Thesear eusedt opr ov idei nfor mat ionaboutt hebusi nessoper ations.Theyar e
effect i
vei ndel iver ingmessagest ot het ar getgr oups.Document ar i
eshowev er
areusedt oenabl et heent r
epr eneur st opr ojectaposi tivei mageandapeal to
targetcust omer sandgener al publ i
c.
Post ersandWal lChar ts
Thesear eusedbyanent r epr eneurt opr esenti nformat ionaboutt hebusi ness
performance.t heyt aket hef or m ofbarchar ts, li
negr aphsorpi echar ts.They
areusedt oi l
lust rat ei nformat ioni nadi agram f orm andhel pt omake
compul sionpossi ble.
TECHNI QUESOFCOMMUNI CATI NGTOCUSTOMERS
a)Howt opr esentapr oduct
Whenpr esent ingapr oductt oacust omer ,anent repr eneurshoul dconsi dert he
fol
lowi ngst rategi es:
 Ensur i
ngt hatt hesal esper soni ssmar tl
ydr essed, soast odel i
verthe
presentt hepr oduct smor eeasi ly.
 Thet ar getcust omer s’needsmustbeanal yzedi nor dert osel ectthemost
appr opr i
at ewayofr epr esent ingt hepr oduct .
 St artingt hepr esent ationoft hepr oduct sbyf ir
stgi vingt heout standing
featur esoft hepr oduct ,thebenef ittot hecust omer set c
 Bykeepi ngt hecust omerpr i
v acy , conv enienceabi l
ityt ouset hepr oduct sand
other ssoast opl anhowbestt opr esentt hepr oduct .
 Gi vingsampl esoft hepr oduct stocust omer ssoast oi dent ifyandgett hei r
i
nputi nt opr oduct iv edev elopment .
 Usi ngr el evantpr esent at i
onai d, phot ographs, char t stobackupt he
i
nf ormat ionaboutt hepr oduct .
 Tel li
ngt het rut haboutt hepr oduct sanddur i
ngpr esent edt opot ential
cust omer s.
 Gi vingachancet opot ent ial cust omer stogi vet hei ropi nionaboutt he
product .
 Handl inganydoubt sint hemi ndsoft hecust omer st act full
ybyt r
yingt o
conv incehi m orher .
Bargai ningwi thcust omer s
Inbar gai ningwi thcust omer s,anent repr eneurmayunder taket hef oll
owi ng
str
at egies:
1.Bei ngagoodcommuni cat ordur ingt hepr ocessofbar gai ningwi th
cust omer sliket alki ngdear ly, showi ngr espectet c.
2.Av oiddomi nat ingt hebar gai ningpr ocess, byal lowi ngcust omer stoal sogi ve
theirownv iewsdur i
ngt hebar gai ni ngpr ocess.
3.Gi vingcount erof fer st ocust omer se. g.reduci ngt hepr i
ceoft hepr oductso
ast oi nducet hem t opur chase.
4.I mpr ov ingont hecust omerser v i
ce, byhav inganef fect i
v ecust omerser vi
ce
depar tmentt of acilitatet hebar gai ningwi thcust omer s.
Strategi esusedt ocol lectov er duedebt s
1.Byi dent i
fy i
ngal lthedebt ors’ f oragi venper i
odoft ime.Thi si sdoneby
anal yzingaccount s, booksofbusi nessandl isti
ngt hem accor dingt otheir
debt samount s.
2.Ar rangi ngal ldebt or saccor di ngt ot hei raudi tper iodandassi gningspeci fic
wor ker st oeachoft hem t ohel pi nt hecol lectionofdebt s.
3.Sendi ngofpol itedebtr emi ndert oal lthedebt ors.Thesecanbedone
throughbycal l
ingt hem onphoneorwr i
ti
ngt ot hem t or emi ndt hem tocl ear
 thei
rdebt s.
4.Col l
ect i
ngt hedebt sfrom thedi f
fer entdebt orswhowoul dhaveresponded
tother emi nder.
5.Updat i
ngoft hedebtorsrecor dsandi ssuingstat
ementsofaccountt oeach
ofthem.
6.Sendi ngst rongr ewardedl ostdater emi ndertothedatedefaul
ter
s.Thisis
donet oaskt hem topayt heirdatesbef or
et henewdeadli
nestated.
7.Taki ngl egalact i
onagainstdef aulter swhocompl et
elyfai
ltosett
lethei
r
debts.
ADEBTRECOVERYPROGRAM
Apr acticalsituation
Youar edeal ingi nsaladmaki ngbusi nessi nwhi chmostoftheproductsare
soldoncr edit.
Prepareadebtr ecoveryprogram

Peppa’ssal
adandv eget ablepr ocessing
P.O.Box624Kampal a
Tel.0704411492
ONEMONTHDEBTRECOVERYPROGRAM ( 1MONTH)
Date Act i
v i
ty Personin Remar
ks
charge
Fi
ll Identifyingthedebt ors Account ant
from t hebooksof
account softhe
business
Fi
ll Ar r
angi ngal l
debt ors Accountant
accor dingt otheir
creditper iodsand
assigni ngspeci fi
c
wor ker stoeachof
them
Sendi ngofapol itedate Accountant
remi ndert oallthe
debt ors
Recei vingdebt sfrom Accountant
thedi fferentdebtors
Updat i
ngofdebt ors Entr
epreneur
recor dsandi ssuing
statement sof
account stoeachof
them.
Sendi ngst rong
rewar dedl astdat e
remi nder stothedebt
 default
ers
Takinglegalacti
on
againstdefaul
ters

Prepar
edby: appr
ovedby
……………. . ……………………………………
PEPPAPERRY ……………………………………
Salesmanager …………………………………..

STRATEGI ESORWAYSOFHANDLI NGDI FFERENTCUSTOMERS

Ther earev erymanyway sofhandl ingcust omer sandt heydi f
ferfrom
organizationtoor ganizat ion.Howev erthepr oceduremayr emai nthesameas
below:
1.Recei vingandev aluat i
ngt hedifficultcustomerobj ecti
onsorcompl ainst o
determi newhet hert heyar egenui neornotandhencet aki
ngappr opriate
acti
ont oaddr esst heact ion.
2.Li st
eningcar efull
yt owhatt hecust omerar esay i
ng,soast omaket hem
havehopet hathi spr obl em i stobeaddr essedi nthebestwaypossi ble.
3.Lear ningt oapol ogi zet ot hedi f
fer entcustomer s,i
.e.afterunderstandingthe
problem oft hecust omer s, i
tisnecessar ythattheent r
epreneurapol ogize
wheret hingswoul dhav enotwor kedout .
4.Tr yi
ngt oconv incecust omerst hatt heproblem beingexper iencedshal lnot
occuragai n.
5.Repl acingoft hepr oduct ssol dtot hecustomeri ncaset heupseti sduet o
recei
v i
ngadamagedpr oduct .
6.Sol vi
ngcust omer s’pr obl emsast heyar i
sei mmedi atel
y .

WRI TINGSKI LLS

Abusi nessl etter
Abusi nessl et t
eri susedt osendi nf ormat ionfrom thebusi nessor ganizationto
ani ndi vi
dual oranot herbusi nessor ganizat i
ononspeci ficar easofinterest
bet weent hebusi nessandt headdr ess.
Cont entsofabusi nessl etter
Abusi nessl et t
ermustdear ,compl et etimel yandbeabl etopr omotethei mage
oft hebusi nessor ganizati
on.Thoughv aried,abusi nessletterusuall
ycont ai
ns
thef ollowi ng:
Thel etterhead:Abusi nessor ganizat i
onusual lyhaspr e-desi gnedandpr inted
paper scalledl etterheads, whi chshowi tsname, address,telephoneNo.and
theemai laddr ess.Thel etterheadmayal sohav etheor ganizat i
onvi
sion,
mi ssion, banker sandanyot heri nfor mationdeemednecessar y.
Busi nessl etterswi l
lbewr ittenont hesel etterheadsi nsteadofwr i
ti
ngona
plainpaper .
Ref er ence:Thi si susedt oi dent ifyt hesubj ectmat terandt her ecipientoft he
l
et ter .Eachbusi nessor gani zat ionadopt suni queandconv incedr ef erence
sy stem f ori tsl ett ersanddocument s.Ther eferencecani ncl udet headdr ess.
Thesubj ectmat terandt hedat esf orexampl eL2/ m/12/ 7/2016.
Dat e:Al l lettersshoul dhav eadat e.Forexam case, t
hedat eshoul dt hatwhi ch
onei sset ti
ngf ort hepaper
InsideAddr ess:Thi sshowst henameandaddr essoft heper son/ organi zati
on
thel et teri saddr essedt oeachi tem shoul dhav easepar atel i
ne.
Sal ut at i
on:Thi sisagener al gr eet i
ngusedt ocommencet hel etterf orexampl e
“Dearmadam”i snor mal l
yusedi fthel etterisaddr essedt oanor gani zationand
theaddr esseei sknownt obeal adyaman.Aper sonal namecanal sobeused
forex ampl e“ DearPer ry ”ift hewr iterknowst headdr essee.
Subj ectheadi ng:Asubj ectheadi nggi v esabr i
efindicat i
onoft hecont entoft he
l
et terusi ngcapi tal l
ett erorbol dpr int.
Bodyoft hel et ter:Thebodyoft hel ettercommuni catest hei ntended
communi cat iont ot headdr essee.Par agr aphsar eusedt oshowdi ffer entideas
i
nt hel etter.
Compl iment ar ycl ose:Thi si sagener al cl
osingt ot heletter, i
tiscommont o
endwi th“ Your sFai thful ly”If“ DearSi r
/ Madam”hasbeenused“ Your sSi ncerely
”,
“Ifdearandnameofr eci pienthav ebeenused”
Signat ory :All busi nessl etter sshoul dbesi gned.
Encl osur es:I fthel et t
erhasanyot herdocumentencl osed, itshoul dbest ated
byusi ngt heabbr ev iation“ ENC”
Copy :Acopyshoul dbekeptf ort hef i
le, andot hersdistri
but edt odi fferent
of fi
cer swhomayneedt oknowaboutt heinfor mationcommuni cat ed.
AFORMATOFTHEBUSI NESSLETTER
Moder nbusi nessor gani zat ionsusebl ockedst yl
ewher eal lpar t
soft he
busi nessl etterbegi nf r om t hel eftmar ginasi llustr
atedbel ow:
JANI TAANDDAUGHTERSLI MI TED
P.O.Box624, KAMPALA( U)
Tel .0704411492
Re:L1/ P/ 12th/07/ 2016
th
12 Jul y2016
Themar ket i
ngOf ficer
MusokeFar mer sLt d
P.O.Box194
KAMPALA
DearSi r,
SUBJECT:GOODSSUPPLI ED
Iwi sht oi nformy out hatt hebananaswhi chy ousuppl i
edt ouson8thJul y2016
wer epoor lypackedandasar esul t, mostoft heconsi gnmentgotspoi lt
.
Youwi llrecal lthatwehav ei nt hepastsenty oucommuni cat ionont hesame
i
ssue, acopyofwhi chi sher ebyendor sedf orr eference.
Thi si st her ef oret or equesty out omai nt ainhi ghpacki ngst andar dssot hatwe
canr ecei
vequal it
ybananasi ngoodcondi tiont hatwillappealt
oourcust omers.
Otherwise,wewi l
lbeforcedt oreviewourbusi nessr el
ationshi
pwithy ou.
YoursFai t
hfully,
………………
PEPPAPERRY
PURCHASI NGOFFI CER
Enc.
AMEMO
Thisisoni nt
er nalcommuni cat i
on,itisawr itt
enmessageusedwi ththesame
organizati
on.
Infil
liti
scalledMemor andum
Element sofamemo
From:Thi sshowswher et hememoi scomi ngf rom.
To:Thi sshowswher ethememoi saddr essed.
Date:Thisshowst hedatei nwhi chthememoi swr i
tt
en.
Reference:Thi sshowst henumberwhi chdi st
inguishest hecommuni cati
on
withi
nt heother .
Subjectheadi ng:Thisshowst hemai nideaexpr essedint hememo.
Body :Thisshowst hedetail
soft hecont entoft hememoi naparagraphform

Pract i
calsi t
uat ion
Youar eempl oyedasagener al managerofElgonFl i
ersBusCompanyt owhi
ch
manycust omer sarecompl ainingaboutthequal i
tyoftheser v
ices.
Wr i
teamemoi nvi
ti
ngt hecust omerrelat
ionoffi
cerforameet ing.
ELGONFLI ERBUSCOMPANY
P.O.Box256MBALE( U)
Tel.0774918779/0777756684
Ref:
Memo Date:13thJuly2016
From:Gener alManager
To:Cust omerRel ati
onOf f
icer
Subj ect:MEETI NG
Iher ebyinv i
tey outoat tendanur gentmeet i
ngwhi chistotakeplaceonSunday
th
14 Jul y2016att hecompanyr ecept
ionhallst
arti
ngat2. 00p.m.themainai
m
forthemeet ingi stodiscusst hecustomer scompl ai
nsoft heservi
ce.Her
eisa
copyoft hecust omerscompl ain.
Pleaseendeav ortoattend.
Your sfaithfully
………………….
Name

NOTICES
Thi
sisatypeofcommunicat
ionwhi
chisbasi
call
yusedtopr
ovidesummar
ized
i
nfor
mati
ont ot
hetar
getaudi
ence.I
tcanbeforgener
almeet
ing,gi
vi
ng
al
ertnessetc.
Practi
calsi
tuati
on
Yoursaladbusinesshadexpandedandduet otheincreasednumberof
customers,youhavedecidedtoshi
ftyourbusi
nesstoanot herpl
ace.
Writ
eanot etoy ourcust
omers,not
if
yingthem aboutchangeinlocat
ion.

MI NUTES
Thesear eusedbyent r
epr eneurstokeepbr iefrecordsofresol
utionsofa
meet ing.Thi sisusedf orf utur
er efer
ence.Mi nutesshouldbeor gani
zedand
usedf orf uturer eferenceandi t
’sadvisablethatitmustbewr it
tenimmediatel
y
afterthemeet ingwhent hesubj ectofdiscussionandconcl usi
oni sr
eachedand
sti
llfreshi nthewr it
ersmi nd.
Pract i
calsi t
uat i
on
Youar ethesecr etaryofy ourschool businesscl ubi
nwhi chyouhav ehada
numberofmeet i
ngs, presentmi nutesoft helastmeet i
ngyouhad.
Element sofmi nutes
 Thenameoft hebusi ness
 Thev enuewher et hemeet i
ngwashel d,t
ime
 Li stofmember sthatwer eabsentwi t
hapol ogy.
 Li stofmember sthatwer eabsentwi t
houtapol ogy.
 Cont entsoft hemi nut ewhichi swrit
tenbasi ngont hefl
owofagenda.

REPORTS
Thesear eusedbyanent r
epreneurt ogiveconcl usi
onsandr ecommendat i
ons
basedoni nvest i
gatedf act sandsi tuati
ons.Ar eportmustbeaccur at
e,cl
ear,
compl eteandl ogicall
yar ranged.
Exampl esofbusi nessr epor tsinclude;Annual reportwhi chshowt hefeel
ingsof
customer sregardingapar ti
culargoodorser v i
ce.
Practicalsituation
Inyournewbusi nesscl ub, youhav ebeenassi gnedat askoffindi
ngoutt he
causesofcust omercompl ainabouty ourbusi nesspr oducts.Wr i
teareport
presentingy ourf i
ndings.
Element sofr epor twr i
ting:
 Thenameoft hebusi ness.
 Thet opicofi nvestigat i
on.
 Obj ectivesofcar r
yingoutt heact i
vit
y.
 Thebackgr oundonwhi chyoucar ri
edoutt hei nvestigat
ions.
 Yourf i
ndingsoft hesi tuati
ons.
 Yourr ecommendat ionaboutt hesituati
on.
 Yourr ecommendat ionf orfurtherresearch.
 Concl usion.
ACTI ONORCI RCULATI ONSLI PS
Thesear eusedbyanent r
epreneurt ogiveinformationf oracti
onsorf ornoting
byanof fi
cerwhomayal sopassi tont oanotherof f
ice.
Cir
cular
sareusedwhenanent repr
eneurwishestogivethesameinfor
mation
tovar
iousper
sonsi.e.onedocumentispreparedandthendupli
catedt
o
dif
fer
entper
sonse.g.cir
cul
arsnormall
ygivent ost
udentsattheendofev
er y
ter
m.

LISTENI NGSKI LLS

Li
st eningi sdef inedast heabi li
tyofani ndiv idual toi nt erpret erandunder stands
whati sbei ngcommuni cat ed.I tismor er elatedt ov i
sual andor al
communi cat ion.Howev ert het er mi sst ri
ct lytightt oor al communi cat i
on.
Thepr ocessofl isteni ng:
Thispr ocesshasf i
v est ages–sensi ng, i
nt erpret i
ng, ev aluat ing, remember i
ng
andr espondi ng.
1.Sensi ng: thismeanst ogeti nt unewi tht hespeaker , aswet unear adi ot he
l
isteneri spr epar edandknowst hathehast ol isten.
2.I nterpr et i
ngandev aluat ing: Listeningi smeani ngf ul whenaper sonconv ert
s
thewor dscomi ngt ohi mi ntoi deas.Thei deasmakesenseornosense.The
l
istenerkeepswhati susef ul,separ ateswhati susel ess, andkeepsanot eof
whati suncl earori ncompl et e.
3.Remember i
ng, List eni ngser v esagr eatpur posewhencr eat i
ngment al
pictur es, forexampl ewhenanaddr essi sbei ngexpl ained.
4.Respondi ng: thi smeanst oactont hemessager ecei vedandt olett he
speakerknowt hi s.Thel i
st enermayr espondont hespotbymaki ng
appr opr i
at er emar ks: “Isee, ”or“ Isitso? ”or“ Okay .”Thi sr eassur est he
speaker .Thel i
st enermayaskquest ionst obr i
ngoutt her equi red
i
nf ormat i
onandcompl etet hepi cturef r
om hi spoi ntofv iew.
5.Ev al uat ion
Appr oachest oLi st eni ng:
Li
st eningcanbecl assi fiedf r
om amer eshow- offt ot hewhol ehear tedact :
1.Pr et endi ngt ol ist en: her et hel i
stenerf acest hespeaker , acr osst het ableor
ont hephonel ine, asl ongashespeaksandt henswi tchesof fwi thout
regist eringt hemessage.Thi sismer ehear ingandnotl ist eni ng.
2.Sel ect ivel ist eni ng: Thi si swhenoneedi t sthemessageast akabl eandnot
takabl e.I nt hecaseofani mpor tantmessage, sel ect ivel ist eni ngl eadst o
par t
ial ful fi
llmentoft hei nst ructions.
3.Super fi
ci al li
st eni ng: Thi si swher ethel i
st enert akesi nonl yt hewor dsbut
nott hespi ritoft hemessage.
4.Emphat icl isteni ng: Thi st erm conv ey sf ul lemphasi sont heactofl i
st ening
andt aki ngi nt heent i
r emessagei nwor dandspi ri
t .Thel ist enert akesi nthe
tone, thepauses, andt hebodyl anguager elatedt ot hewor ds.Emphat i
c
l
isteni ngi snecessar yt omov efrom one’ spr econcei vedst and.Thel istener’s
opennessmakeshi mr eadyt obei nfluenced.
5.Dy nami c( mut ual l
ycr eat i
v e)l i
stening: Her e, l
isteni ngi sacr eat ivepr ocessi n
whi cht hel ist enercont ri
but est othemeani ngt hati sbei ngconv ey ed.He
addshi sener gyt ot hatoft hespeakert ogener ate.
6.I ntuitivel isteni ng: thismeansadi recti nsi ghti ntot het rut h.Forani ntui t
ive
 l
istener ,amer ehi nt,anunder toneorasi lencei senought oreadt heot her
per son’ smi nd.I tisnur turedwhenonel ist enst ohighqual it
ymusi corf inds
nat ural ormedi tativesol i
tude.
Bar
rier stoEf fecti
v eLi st ening:
1.Poorhear ing: I
fone’ ssenseofhear i
ngi sdef ect i
ve,li
st eningisi mpai red.
2.Listener ’
schai noft hought s: i
.e.whent hemi ndofl i
steneri shav ingown
thought s.Thesemaybecomer apidandl oudf rom timet otime, mar ri
ng
one’ sr ecept ivi
ty.
3.At ooheav ymessage: Useofj argonorov ercompr essi onofi deasmaymake
anor al messaget ooheav yf orthel i
st ener .
4.Listener ’
ssel f-
impor tanceorpr ejudi ce: i.e.whent hel istenerhasputhi msel f
abov et hespeaker ,ther eisnor ecept iveat ti
tude.
5.Mi sunder standingaboutt her oleofal ist ener :Somel i
st enersmaynotbe
awar eofwhatt hei rrol einapar ticularsi tuat i
oni s.Theymayt hinkt hati tis
thespeaker ’sresponsi bil
itytoexpl ainev er ythingpr oper ly
.
6.Cul tural gap: I
ft hespeakerandt hel ist enerhav edifferentcul tural habi ts,the
l
isteni ngmaybei ncompl et e.Thel i
stenermayassi gndi ff
erenti mpor tancet o
awor dorphr aset hani smeant .Whi l
eOr ientalsareusedt oanel abor at e
styleofaddr essi ngagat her i
ng, west erner sar eoftenqui t
ebr i
efabouti t .But
thiscanbedi stract i
ngt oaneast er ner .
7.Preoccupat ions: Somepeopl eli
st enwhi leeat ing,drinkingordoi ng
handi wor k.Insuchcasest heat tent ioni sdi vided.Abusymanager ,for
i
nst ance, mayt ryt olistenwhi lefilingpaper soropeni ngt hemai l.Thi s
affect sl i
stening.
8.Egoi nfluence; ift her eceiv erconsi der shi m super i
orandi snotwi ll
ingt o
l
isten, thi segopr obl em act sasast umbl i
ngbl ockint hel ist
eni ngpr ocess.

Howt odev elopent repreneur ialli

steni
ngski l
ls
Ent
repreneur sareusual l
ygoodcommuni catorsbutt heyneedt ohav etheabil
it
y
tol
isten.Mostofusl i
stent oonl y25%ofourabi l
it
ywhi leothersmaybeev en
l
essthan25%.Wenor mal l
ylistentoourcl osef ri
ends, t
eachers,family
member sandbosses.
Thefollowi ngst rategiescanbeusedt odev elopef fecti
veli
stening:
1.Sendsi gnalst opeopl ethr oughtheey esandbodygest uressot hatthey
knowonei sli
st ening.
2.Relaxwhencommuni catingsucht hatot herswi l
l f
eelcomf ort
ablewhen
addingt heircomment s.
3.Slowdownt hemi ndswhenl ist
eningsot haty ouar epredictedbywhat
peopl esay .
4.Impr oveont heconcent ration.
5.Av oi
dingf ormi ngar eplybef oreheari
ngwhatot herpersonssay .
6.Donotbedef ensi veaboutt heindivi
dual pointofv iewdur i
ngcommuni cat
ion.
7.Keept hev oicesof trathert hanaggressi ve.
Howt oat tendt ot hemessages
Thefollowi ngi sinv olvedwhenani ndiv
idual attendst othemessage:
 Maki ngey econt act : Eyecont actincr easesy ourchanceofget tingt he
message.
 Whenonphone, trynott ol ookatt hingst hatwi l
ldistracty oufrom l isteni ng
toandat tendi ngt ot hespeaker .
 Yourbodypost ure, i
ncl udingsl i
ghtl eani ngpost uresuggest sthaty ouar e
pay ingat tent ionandhel psy out ost ayt unedi n.
 Whenonphone, tryt oposi tiony oursel fsot haty ouar ecomf ortabl ebutnot
rel
axedt haty oul oset heabi li
tytoat tractt hecal l
ers.Usev ocal at t
endi ng
behav ior s’“eh- huh” ,mm- hmmm”
 Wheni nt eract ingwi tht hespeakeri nper sonf acet hespeakersquar elyand
l
eanf orwar dsl ight lyt owar dst hespeakert oshowt haty ouar eat tent i
ve.
 Ver bal ornon- v erbal acknowl edgementoft hespeakerhel pst oi nvolv ey ouin
thecommuni cat i
onpr ocessandl etst hespeakerknowy ouar epay ing
attent ion.
 Wheni nt eract ingwi tht hespeakeri nper son, usenonv erbal att
endi ng
behav iorsuchasnoddi ngandf acial expr essi ons.
 Cl eary ourmi nd, ont hought st oav oidment allywander ingandot her
dest ruct ingbehav iors.
PERSONALBRANDI NG
Abr andcanbedef i
nedasanamet owhi chasetofassoci ationsandbenef its
thathav ebecomeat tachedi nt hecust omer smi nd.Thenamecoul dbeofa
product ,ser v i
ce, abusi nessent i
tyorev enani ndi vi
dual .
Personal br andi ngt her ef oreref erst oasetoff eaturest hatdi sti
ngui shan
i
ndi vi
dual (ent repr eneur )tost andoutoft hecr owdasbei ngdi f
ferent .
Amer icanMar ket i
ngAssoci ationdef ineabr andasaname, term, sy mbol or
designoracombi nat ionoft hem whi chi ntendedt oi dentifyt hegoodsorser vi
ce
ofonesel lerorgr oupofsel lersandt odi fferent i
atet hem f rom t hoseoft he
compet i
tor s.
Brandi ngr ef erst ogi v i
ngapr oductaname, symbol ordesi gnorcombi nationof
them t odi st i
ngui sht hegoodsorser vicesf rom t hoseoft hecompet it
or s.
Themai npur poseofbr andi ngi st odist i
ngui shagoodorser vicefrom t hoseof
compet i
tor s.

I
mpor t
anceofdev elopingper sonalbr and/advantagesofper sonal br
anding
Tothepr oducerormanuf actur er:
 Aper sonal brandspeaksv olumeaboutt hebusinessandt hushelpstobui l
d
areput ati
onf orthebusi nessamongstt hecustomer swhouset hegoods
andser vice.
I ti
seasyt oadv erti
sethepr oductbr andofasel l
eri .
e.Makesi teasyforthe
product stocompet ewithal readyest abli
shedbr andint hemar ketenabli
ng
thebusi nesst obuildbrandl oy al
tyamongstcust omer s.
 Aper sonal brandhel pstoaddper ceivedv al
uet othepr oducet hesell
eris
sell
ing,andt hiscanal l
owt hebusi nesst osel
lathi gherpricetoloyal
customer .
 Aper sonal brandhel pstoat tractther i
ghtcustomerorl oy alcustomersand
 oppor tuni ties,becausei tmakesi teasyt oident ifythepr oduct s.
 Aper sonal brandhel pst oassoci atet hesel l
er/ producerwi ththepr oductor
ser vice; thismakest hesel l
ercont inuousl yplanhowt odobet terthant he
ri
v als.
 Aper sonal brandenabl est hesel lert oposi ti
onandf ocust hemessagei nt he
mi ndsoft het argetcust omer s.Thi sr esul tsintoi ncont i
nuouspur chase.
Guidel inesonper sonalBr andi ng
Bigcompani esunder standt hei mpor t anceofbr andi ngt oday .Int heageoft he
i
ndi vi
dual youhav et obey ourownbr andr egardlessoft heage, positionort he
businessy ouhappent obehencet hef oll
owi nghel ponet ocr eat eanef fecti
ve
personal br and:
 Speci alizat i
on: Agr eatper sonal br andmustbepr eci se,concent ratedon
singl ecor est rengt hort alentsorachi ev ement s.
 Leader ship: Per sonal brandmustt akel eadandcr edibili
tyt hatot herpeopl e
seeandal soi nfluence.
 Per sonal ity:Agr eatper sonal brandmustbebui l
tonaf oundat i
onoft he
sour ce` soft r
ueper sonal ityand.
 Di stinct i
v eness: Anef fect i
v eper sonal brandneedst obeexpr essedi naway
thati sdi fferentf rom ot her s.I.e.compet it
ors
 Vi sibi l
ity :Aper sonal brandmustbeseenov erandov eragai nunt ilitimprints
i
tssel font hesubconsci ousmi nd.I tmustbeseenbyot hersi nwhatone
say s, doandbel iev ein
 Uni ty: Thepr ivateper sonbehi ndaper sonal brandmustadher et othemor al
andbehav ioralcodesetdownbyt hatbr and.I.e.thepr i
v ateconductmust
mi rrort hepubl i
cdemand.
 Per sist ence: dev elopingabr andi snotaonedayi ssue.I ttakest i
met ogrow
andi tisadv erti
sedt hroughpubl i
cr elat i
ons.
 Goodwi ll:Aper sonal br andal way spr oducebet t
err esult sandst ayf orlong
oncet heper sonbehi ndi sper ceiv edi naposi tiv eway .

Gui
del inescreatingper sonalbrand
1.Det erminewhoy ouar e:t
hisisdonebyhav ingareflect
iononper son`shabi
ts
talentsandnat ureoft asksperformedbyani ndiv
idualtoidentifypersonal
brandonemustbeabl etoaskwhatt odotomakemedi ff
erent .
2.Det erminewhaty oudo: t
hisinvolveswr i
ti
ngdownone’ sgreatestideasof
i
nt erestandt hisr ef
lectsthekindofwor konewant stodoi nl i
fe.
3.Posi ti
ony ourselfbyi denti
fyi
ngt hequal i
ti
esthatmaket heper sondi f
ferent
from ot hers.
4.Managey ourbr andi.e.bymar ketingitcorr
ectl
y/properl
y.
Quest i
on:
1.Whatspeci fi
cqual i
ti
esandchar act eri
sti
csmakey oudi ff
erentev enbetter
thanany oneelse?
2.Whati sspecial aboutwhaty oucanof f
er?
3.Whatdoy oudot hataddst heremar kabl
edisti
nguishablevalue?
4.Whatdoy ouwantt obef amousf or?
5.Whathav
eyouaccompli
shedthatmakeyoubragabout
?
6.Howcanyoupackagey
oursel
ftostandoutoft
hecrowd?

End

SOCI ALENTREPRENEURSHI P
Social entrepreneurshi pisthecr eat i
onofi nnov ativeenterpriset omakeposi ti
ve
andsust ainableimpactont hesoci ety.Social ent repreneurshi pther eforeoffers
apr omi singnewwayofcont ri
butingt osolvingt hewor ld’ssoci aland
env i
ronment alissues.Itsmai nf ocusi stof ostert hecreationofsust ainabl
e
enterprisest hathav eposi t
iveandenv i
ronment al impact .
Asoci al entrepreneuri ssomeonewhor ecogni zesasoci alpr oblem anduses
entrepreneur ialpri
nciplestoor ganize,createandmanageav enturet omakea
socialchange.Soci al entr
epr eneur sarealway swi ll
i
ngt otakeont her iskand
efforttocr eateposi ti
vechangesi nsoci etyt hrought heirinit
iatives.They
assesssuccessi nt ermsofsoci al i
mpact ,maki ngasoci aldifferencei nsociet
y
andal somaket hewor l
dabet terplace.
Social entrepreneursar egai ningint er
national at tenti
onandar ebei ng
recogni zedincount ri
esacr osst hewor l
d.Theyar emot i
vatedbyt hepr ospects
ofmaki ngadi f
ferenceandcr eat i
ngaposi ti
v eimpactonsoci etyandt he
env i
ronment .

Typesofsoci alenterpr i
ses
Hy br
idsoci alenterprises:Thisisasocialenterpri
sewhi chmixesnonpr
ofi
ts
andforprof it
sst r
ategi esbyselli
ngsomepr oductsforproductsandoff
ers
otherswithoutmaki ngpr ofi
ts.
Profi
tSoci alenterprise:Thisisasocialenterpri
set hatsel
lsi
tsproduct
sfor
profi
tsbutf ocusesoncr eat
ingsust
ainabl
esoci alimpact .
Nonpr of
it
sSoci alenter pri
se:Thisi
sasoci alenterpri
sethatdoesnotmake
profi
tsfr
om i tsgoodsorser vi
cesandheav il
ydependsondonat i
onsfor
fi
nancingitsact i
viti
es.

Conceptsi nSoci alEntrepreneurship

1.Positi
ve:Thi sist hemi ssiontowhi chtheent er
pri
seiscr eatedfori .
e.tohave
meaningf ulchangei nthesociety .
2.Innovative:Itisani nnovativeenterpri
sethataccompl ishesitsmi ssionina
newandbet terway .
3.Impact s:Thesear etheresultsthatarecr eat
edbyt hesoci alenterpri
se.
4.Sustainable:Thi sisthecr eati
onofent erpri
sethatcanl astforlongduet oit
s
acti
vit
iesi nthesoci ety.
5.Empower ment :Thisistheabilit
yt oi
ncreaseonesst rengthandcapaci t
yt o
dosomet hing.
Compulsionsbet weensoci alenterpri
ses,businessandchar ityorganizations
1.Endgoal :Fort hebusi nessent er prises, themai nai mi npr oduct ioni spr of i
t
maxi mi zat ion, forsoci al ent erpr ise, themai ngoal i
st ocr eat easust ainabl e
i
mpactonsoci et yandmaket hewor ldabet terpl ace.Howev erf orchar i
ty
organi zat i
ons, thei racti sal way ski ndnessandgoodwi ll
.
2.Timef rame:Forabusi nessor gani zat ion, thei rresul tsareachi ev ed
i
mmedi at elye. g.i ncr easi ngpr of itsby5%ev er yy ear .Howev erf orsoci al
ent erpr i
ses, t
heyachi ev et heirr esul tsaf teral ongper i
odoft ime.
3.Ty pesofent erpr ises:Forbusi nessi spur elyf orpr ofitent erpr i
seswhi le
soci al ent er prisear eei therf orpr ofitsornonpr ofitsorhy br ident er prises.
4.Rewar ds:Forbusi nessent erprises, themai nr ewar di sprof it
sormoney
retur nsf orpr ivat ei nv est orwhi chmot ivat est hem t ounder takemor er i
sks.
Howev erf orsoci al ent er pr i
ses, ther ewar di st ohav eabet tercommuni tyi.e.
i
ti ssoci al andenv ironment albenef i
tsf orcommuni ties.
5.Tar getmar ket s:Forbusi ness, thet ar getmar keti sf orpot ent ial cust omer s
descr i
bedi nt ermsofmen, women, chi l
dr en, elder ,t
hosewhoar ei nwor king
classet c.whi lesoci al ent er prises, thet ar getmar keti sthedi sadv ant aged,
vulner abl eandunder ser v edcommuni ties.
6.Cust omeror ientat ion:Forbusi nessent erpr ises, cust omer sexpectt oget
super i
orser vicest hatmeett hei rneedandal sot hewor thymoneyspenton
thegoodsandser vi
ces.Howev er ,forsoci al ent repreneur sitsf ocusi sof
empower mentf orpar tner shipi ndev elopmentsucht hateachmember
becomespar toft hepr ogr am orent erpr ise.
7.Impactar ea:Forbusi nessent er prise, thei mpacti stocr eat ecust omer
sat i
sf act iont hr oughpr ov idingnewpr oduct sandser vi
ces.Howev erf or
soci al ent er prisest hei mpactar eai ssoci al,env ir
onment al andeconomi c
out comeoft hewhol ecommuni ty.
8.Per cept ionsofv alue, f
ort hebusi nessent erpr ises, valuel iesi nt hepr ofitthe
ent repr eneurandi nv est or sexpectt or eapast hepr oductest ablishesi tselfin
amar kett hatcanaf for dt opur chasei tandbusi nessent repr eneur sar e
account abl et oshar ehol der sandot heri nv est or sforgener atingt hese
prof itsont heot herhandsoci al ent repr eneur sl i
esi nt hesoci al benef itst oa
communi tyort ransf or mat i
onofacommuni tyt hatlackst her esour cest o
fulfil
l i
tsownneeds.
Tradi tional ly ,char itywor ker swhov iewedpeopl easbenef iciar i
esi nst eadof
peopl ewhohav et hepowert ohav eani mpactt heref oresoci alent erpr i
ses
viewpeopl easpar tner sbecauset heywor kt ouset hepowerandpot ent ialof
thepeopl et heywor kwi tht omakesust ai nabl ei mpact .

ImportanceofSoci alEnt
repreneur ship
1.Socialenterpri
sescreatesocialimpactont hesoci etyandtheenvi
ronment,
thi
si sachievedbyaddr essi
ngt her ootcausesinsteadofcreati
ngshort
ter
mssol ut i
on.
2.Socialenterpri
sesareleadersini nnovati
on;theytherefor
ehavewide
spreadingef f
ectsonthewaywel iveandwor k.
3.Socialenterpri
sesaretransformat i
v efor
ces;theyhav enewideast
oaddr ess
 majorproblemst hataffectindiv
idual
sandt hesociety.
4.Soci
alenter prisestr
ainthesoci etymember sandequi pthem withbusiness
ski
ll
s,t
hishel pssuchi ndividualstotr
ansform andempowert hesocieti
es
wheretheyl iv
e.
5.Theyprovideempl oymentoppor t
unit
ies,
li
keanyot herbusinessenterpri
se
employpeopl ei nvari
ousdepar t
mentsandf iel
dstheyar eengagedin.this
i
mpr ov
esont heliv
esofpeopl e.
6.Theycontribut etotheinfrastr
ucturaldev
elopmenti.e.roadsthrough
empower i
ngt hecommuni tytobegoodadv ocat
ors.

Soci alEnt repr eneur shi pandSust ainabl eDev elopment

Sust ainabi l
it
yi stheabi l
it
yofsomet hingt or enewi tsownr esour cesormai ntai
n
i
tsi mpact .Itcomesf rom t hewor dsust ai nwhi chmeanst osur viv eorcont i
nue
e.g.asoci al enterpr isegi v esapr egnantani mal tooneneedyf ami ly.It
reproducesandoneoft heof fspr i
ngi sgi venbackt ot heent erprisesoasan
animal canbegi vent oanot herf ami ly.
Ther efor esust ainabl edev elopmenti sdef inedast hatdev elopmentwhi ch
meet st hecur rentneedsoft hesoci etywi thouthar mi ngt heabi l
i
t yoft hef uture
gener at i
onst omeett heirownneeds.
Areasundersust ai nabl edev elopmenti ncludeeconomi cdev el
opmentwhi ch
referst ot hesust ainedi ncr easei nt hequal ityofgoodsandser vicespr oduced
byent repr eneur si nacount ryori nanar ea.I tismani f
estedi ntermsof
i
mpr ov eduseofr awmat er i
al s,qual it
yi mpr ov ementamongot hers.
Soci aldev elopment
Thisr ef erst ot hei ncr easesust aingr owt hi nt hequal i
tyofpopul at ionandsoci al
serv i
cest hatmeet st hesoci etyneeds.
Env ir
onment aldev el opment
Thisr ef erst ot hesust ai
nabl eper sistenti ncr easei nt heav ailabler esour ces
whi l
emi ndingaboutt hef utur e.Ittakest hef or m ofenv i
ronment al awar eness,
i
ncr easedr epl antingoft r
eesandsust ai ningt hepr ogr am.
Cultur aldev elopment
Thisr ef erst ot hesust ai
nabl edev elopmentofcul t
ur alvaluesi nt er msof
norms/ behav i
or /
v aluet hatf or m par toft hef uturegener ation.
Ther efor esuchdev elopment shav eani mpactont hef uturegener ation.Term
i
mpactmeanswhati sdoneort heact ionwhi chi st akenandsust ainable
dev elopmenthast hef oll
owi ngi mpact :
I ncreasabl edev elopmentoneducat ion.
 Sust ai nabl eincome.
I mpr ov edenv i
r onment al resour ceuse.
I ncreasi ngt rainingandaccesst obet terr eadi ngmat erials.
 Reduceddanger sofdi seases.
I mpr ov edl i
v i
ngst andar ds.
I ncreasedl ifeexpect ations.
Charact eristicsofSoci alEnt repr eneur s
Thesear eaf eaturet hatdi stingui shessoci al ent r
epr eneur sfrom anyot her
person.Theat tri
but esi nclude:
1.Per sonall eader ship–Soci al ent repr eneur sleadbyexampl e,theyhav ean
abilitytoi nfluenceot hersandt heyar er esponsi blef ort heiraction.
2.Ethical–Soci alent repreneur sar eet hical center edbecauset heymake
deci sionsaccor dingt ot heirv aluesbutwhatot her st hink.Pr i
nciplesar e
basi candt i
mel essr ulesandv aluest hati ndi vi
dual suset omakedeci sions.
3.Goalor ient ed–Soci al entrepr eneur sst artwi thaposi tivev i
sionandt henset
ofaat tainabl egoal st oreacht hesetv ision.
4.Goall i
st ener–Soci al entrepr eneur slistent opeopl e’si deasandcomment s
inor dert olear ntheirmi st
akeshenceact i
ngoncomment st oimpr ovet heir
perfor mance.
5.Theyar er i
skt aker s–Soci al ent r
epr eneur st akemoder ater i
skst hathav ea
reasonabl echanceofsuccess.Theyt ryt or educer isksbyi nvolvi
ngmany
otherpeopl e( communi tymember s).
6.Empower ing–Soci al entrepr eneur sbel iev einanduset hepot entialoft he
peopl etheyhel p.Thi shel pst hem t olear nast ogetexper i
ence.
7.Theyar eadv ocat ors–Soci al entrepr eneur sspeakupandt akeact i
onf or
whatt heybel ievei sr i
ghtev eni fther ei sopposi t i
on.
8.Theyar eopt imi sticandf lexible–Soci al ent r
epr eneur s, despi t
ethe
chal l
engest heyf ace, t
heyar eal way sposi ti
v eanddet er minedt osucceed
what evert hesi tuationwoul dbe.
9.Theyar eext raor dinar yper si stenti .e.irrespect iv eoft her esour cesunder
theirdi sposal beingnotsuf ficient ;theyt rytheirbestt osucceed.
10. Theyar ecr eative, theyar ecr eativeenought ohav eav i
sionofwhatt hey
wantt ohappenedandhowt hev i
sioni st obeachi ev ed

ADVOCACYSKI LLS
Adv ocacyi sthev er
bal ,writ
tenorsy mbol i
cact iont opromot eami ssionora
cause.
Social entr
epreneur sar eskil
ledadv ocatesoft heirv i
si
onandsoci ali
nnovation.
Theyai mtomaxi mizet heposi t
iveimpactoft hei
rwor k.
Adv ocacyi saboutspeaki ngandwr i
tingtoot herst ospreadideas, i
nnovati
ve
strategiesandr ecruitsuppor t.
TheGEPI Cst ructuref orAdv ocacy
TheGepi cstructuref oradvocacyi sast at
ementt hatinv ol
vesapr esentat
ionof
problem orsol uti
oni nt hemosti nteresti
ngway .Itprovidesbriefandinspir
ing
factst othepubl i
candaudi ence.Itisstructuredasf ol
lows:
G–Gr eet
ing
Thisincludesr ecognizingthepeopl epr esentandsel f-i
ntroducti
onand
greeting.
E–Engage
Thisismor econcer nedwi t
hdr awingt heat tenti
onoft heaudienceusing
 relevantst oryquotesorst atist
icsorshocki ngfactst ocapt urethe
attenti
onoft heaudi enceandmaket hespeechi nteresting.
P–Probl em stat ement
Thi sshowst hemagni tudeoft hepr oblem andhowi tisaffectingthe
communi tyshowi ngf act sclearlywi t
houtper sonal optione.g.disease
out br
eaksuchaschol era,global warmi ng,soildegradat i
onet c.
I–I
nform
Thi sprovidestheexpl anat ionoft hepurposeoft heprojectofi nnovat
ion
andwhati sbei ngdoneort obedonet osolv et
hepr oblem.
C–Cal lforacti
on
Chal l
engingt heaudi enceorcommuni t
ymember stosuppor ttheproj
ect,
e.g.byusi ngdust binsappr opri
at ely
,collect
ingr ubbish,attending
sensiti
zationwor kshops, sensitizingpeopl eathomeort hecommuni ty.

SAMPLEofGEPI
CSTRUCTURE

STEPSTOBECOMEASOCI ALENTREPRENEUR
Beingasoci alentrepreneuri sr ewar dingl i
keanyot herbusi ness, therear esteps
thataref ollowed:
1.Dev el opingt hev isionori dent ifyingt heski ll onei sgoodat .
2.Ident ifyi
ngbusi nessoppor tuni tiest hatar eav ailabl
eint hecommuni ty,
thiswoul dbeasol utiont osol vingpr obl emsi nt hecommuni t
yor
i
mpr ov i
ngpeopl e’swel faree. g.wast emanagement ,env ironment al
conser vat i
on,hai rdr essi nget c.
3.Mat chingt hev isionandt heoppor tuni t
yav ailableinthecommuni ty,
thi
sis
donet hroughcar ry i
ngoutmar ketr esear chi nor dertogetmor e
i
nf or mat ionaboutt heoppor tuni ty .
4.Act ingandspr eadi ngchange, thisi sdonet hroughpr epar ingt hesoci al
enter pr i
sepl an, whi chi sadescr iptionoft hei nt r
oduct i
on, theor yofa
change, thev i
sionst atementet c.
5.Mobi li
zingt henecessar yr esour ceswhi char eneededf ort he
establ ishmentoft hesoci al ent erpr ise, t
heser esourcesmayi ncl ude
capi tal i
nf orm ofmoney ,skills, technol ogy , l
andandal sot i
me.
6.Compl etingallthenecessar yr ecommencementl egal f
or mal i
ties,these
i
ncl uder egisteringt hesoci al ent erpr ise, pur chasingland, accessi ngthe
env ironment alassessmentr epor tet c.
7.Const ruct i
ngal ltheneededbui ldingsandot herst r
uctur es,
8.Pur chasi ngandi nstallingt henecessar ymachi nery,
equi pment ,furni
ture
andot hermat er i
al s.
9.Recr uiti
ngofal l theneededl abourandt rainingi t.
10. Launchi ngt hesoci al ent repr eneurpl an,

PRACTICALSITUATION
Youhavedeci
dedtost ar
tapr
ojectorabusi
nessdeal
i
ngi
nwast
emanagement
asasocial
ent
repreneur.
Developmentapr
ogram f
orbecomingasoci
alent
repr
eneur
.
PresentaGepi
cstr
uctur
eforadvocacy
.

DEVELOPI NGGOALSANDACTI ONSTATE

Businessgoal sr
eferstothemedium andl
ongt ermt
argetsabusinesswant
sto
achievewithinastatedperi
odoftimebasedont hemissi
onstat
ement .
Goalsshouldhav ethefol
lowingchar
acter
ist
ic:
 Specificinnatur
e
 Measur eable
 Ti mebound
 Chal l
enging
I nspiri
ng
 Achievable

Businessgoal star
twi ththe“ To”andt heyarewr i
tten.Inadorequotati
onmar ks.
Topr ov i
decust omer swi t
hahi ghqualit
yfruitthroughusi ngthebestproducti
on.
BusinessVi sionSt atement
Thisi sast atementgi v
ingal ongt et ar
getwher et hebusinesswant stobein
fut
ur e.Abusi nessnor mal l
yhasonl yonev i
sionst atementwhi chprovi
desthe
dir
ect i
ont ot heact iv
iti
esi nabusi ness.
UsesofBusi nessVi sionSt atement
I tisusedt odetermi nethemi ssionstat
ementoft hebusiness.
I tisusedi ndet erminingt henat uretobeempl oy ed.
I thel psindr awingthest rategicplanofthebusi ness.
MISSI ONSTATEMENT
I
sabr iefstatementt hatgivest heov er
allpurposeoft hebusiness,
itsproduct
s,
i
tsv alues,itssal estot hepubl i
c.
Agoodmi ssionst atementshoul dhav ethefol l
owi ng:
Speci fyi
ngt hepr oductst obesol dorthecust omer ’sneedst obemade.
Sustaininghowt hebusi nesswoul dsati
sfythecust omer’
sneeds.

NB: Ami ssionst atementi salwayswr i

tt
eninclosedquotati
onmar ksstart
ing
withthewor d“ To”e.g.topr ovi
deandsel lhi
ghqualit
ypoultr
yproductsthrough
practi
cingmoder nfarmi ngmet hodssoast osati
sfytheneedsofthe
customer sef fecti
vely.
Goodact ionst epsi nanypr oj
ectorbusinessshouldprov
idethefoll
owing:
 Pr oduceacl earimpact .
 Hav eacl earst artandendt ime.
 Measur ether esul t
s.
 Sety ourgoal sinal ogicalorder.
 Pr ovi
deway sofachi evingyourgoals.
OBJECTI VES
Thesear especi f
icshor ttermedt ar
getthatabusinessst
riv
est oachiev
ewi thi
n
ashor tti
me.
Examplesofbusinessobjecti
vesi
ncl
ude:
 Toincreaseprofi
tsby5%i naperi
odof6months.
 Toincreasethesalesvolumeby5%inaperi
odofoneyear
.
 Toincreaseproducti
onby2%i naperi
odof6month.

SOCI
ALENTERPRI
SEPLAN

COMMUNI TYRESOURCES
Thesear eresour cest hatarecol l
ect ivelycont rolledbyt hecommuni tye.g.
communi tyl and, struct uresl i
keschool s, phy si cal spacee. g.t ownbui l
dings,
playinggr oundset c.
Communi tyinst itutionsl ikel i
brary ,local pol i
ce, univ ersitieset c.
Nongov ernment alor ganizat ions,t hesei ncl udecul tural gr oups, elderlygr oups,
fait
hbasedgr oups, chur ches, mosques, social groups.
Thesesoci al communi t
yr esour cespr ov ideoppor tuni t
iesf ormember sint he
communi tyt ouset hem f ort hebenef itoft hecommuni tyatl arge.
THREATSTOCOMMUNI TYDEVELOPMENT
1.Pov ert
y :Thi si sbr oughtaboutbyi ndi v i
dual sl i
vingi nt hecommuni t
yf ai
ling
toaccesst hebasi csofl ife.Thesebr eedssoci al behav iorsl iket heft,mur der,
childabuse, homedomest i
cv iolence.
2.Di scr iminat ioni st hemaj orcauset ocommuni tydev elopment ,becausei t
prev ent stheent irecommuni tyf rom dev elopi ngbyexcl udingcer t
aingr oups
ori ndividual si .e.t heexcl udedgr oupsdonothav et hesameweal th,
privileges, right scompar edt oot her s.Theybecomet hewor stv ulnerable.
3.I gnor ance: Thi si st helackofi nf ormat ionorknowl edge, thiscr eat esdi f
fer ent
groupsi nt hesoci etyi.
e.t hosewhohav eandi nf or mat iont heref ore,
i
ndi v i
dual si nt hecommuni tybecomepower less.
4.Dependency : Thi si sast at eofneedi ngt or elyonsomebodyorsomet hi
ngf or
helporsuppor tespeci all
yf inanci al suppor t.Thi si scausedbyi nequal it
yi n
thesoci etyi .e.t hosewhohav eandt hosewhodon’ tt heydon’ tdependon
thosewhohav e.
5.Di shonest y:Thi si saser ioust hr eatt ocommuni tydev elopmentbecausei tis
thebasi sofexpl oitati
onwher esomei ndi vidual st akeunf airadv antaget o
mi suset hosewhodon’ thav e.Thi sbr ingscor r
upt i
on.
6.Lackofbasi cnat uralresour ces; t
hesei ncludel ackofmi ner als, poorsoi ls
whi chcannotwi thst andbadcondi tionssuchar easdonothav eaccesst o
basi cneedsl ikegoodshel t
ers, goodr oads, saf ewat er set c.
7.Lackofr olemodel sandment or s:Thi si sat hreatt ocommuni ty
dev elopmentbecausei ndi vi
dual smaynothav epeopl et hatt heyadmi reand
alsogeti nspi redt odev elopasani ndi vidual andacommuni tyasawhol e.

STRATEGI ESFORSOCI ALENTERPRI SES

Therear eanumberofwaysinwhichthecommuni t
ycanbeposi
ti
vel
yimpact
ed.
Thef ol
lowingar
ethemostcommonst rat
egiesforcommuni
tydevel
opment
thatareusedbysocial
entr
epreneur
sar oundthewor l
d.
 1.Increasingaccesst ogoodsandser vi
ces, thesei ncludef ood, heal th,
housi ng, safet y,wast emanagementandeducat i
on.Thi sst rategyof
i
ncr easinggoodsandser vicesi nvolvesal l
owi ngmor epeopl eaccesst o
whati sav ailablet oot her s.
2.Increasingknowl edget hr ougheducat ionandawar eness, knowl edgei s
power .Wi thouteducat ionandawar eness, peopl earel eftbehi nd, taken
adv antageofori ll
pr epar edt ol i
veinandunder st andt hedanger sand
oppor tuni t
iesoft heirenv ironment .
3.Increasingoppor tunitiesf ort hedi sadv antaged: Ascommuni ti
esdev el
op,
mor eoppor tunitiesar ecr eat edandi fthisoppor tuni
tiesar enotav ail
abl
e
tocer taingr oups, ther esul tsinequal i
ty,soci altensionandpov erty.
4.Increasingadv ocacyf ort hedi sadv antagedgr oup:Thi sinvolvest he
social ent r
epr eneursur ginggov ernmentt opr ovidesuppor tinf orm of
donat ions, gr antssucht hatser vi
cesar eext endedt ocommuni ti
est hat
aredi sadv ant aged.
5.Trainingcommuni t
ymember stobepar tofasoci alent erprise, thisis
wher ecommuni tymember sar eencour agedt omakecont ri
but ionsas
member shi pandatt hesamet imepur chasegoodsorser vicesat
relati
velyl owcost sasent erprisepr ovi
deoppor tunit
iesf ormar ket sfor
communi typr oduct sandser vices.

Pr
ofit
smaki ngstrat egiesandt hei ref
fects
1.Incomegener atingact i
v i
ties:Fornon- prof itenterpri
se, i
ncomegenerati
ng
activi
t i
esincludesel li
ngapr oductorpr oduci ngtheirownr esources.
2.Startingagricul t
ural enterprisesthatpr oduceout put
, andsoldataprofi
t
tothecommuni ty.
3.Char gingaf eef oruseoft heenterprise` sasset st ocommuni t
ymember s.
4.Trainingcommuni t
iesatacostt othecommuni t
ymember s.
5.Char gingmember shi pfee.
6.Produci ngandsel lingpubl icati
onst ot hepubl i
c.
7.Char gingaf eef oranyser v i
ceconsul tedt o.
8.Organi zi
ngf undr aisingfunct ionstorisef undssoast obei nv
estedin
incomepr oduci ngact ivi
ties.
NB:Theincomegener ati
ngact iv i
ti
escanber elat edorunr elat
ed.

Ownershi
pandorgani
zat
ion:
Asoci
alent
erpr
isehasdi
ff
erentway
stost
ruct
ure
anduseit
sresour
ces.
Ownershi
pandorgani
zati
on

Community Commi ssi

on Deli
very
Ther
eisl
imittohow (Workersar
epaida (Sel
li
ngpar tofthe
muchonepersoncan per
centageprof
it
) productcheaperand
managethemorethe thepartmustr epl
ace
communityi
s asmor eexpensiveas
i
nvol
ved mor eexpensiveas
soldtotheot her
SUSTAI NABI LITY
Sustainabi l
ityisawi deconceptt hatcanbeappl i
edi nmanydi ffer
entway s:
1.Financi al sust ai nabi l
ity: Thisr eferstot heabi li
tyofent erprisetof inance
itselfnowandf ort hef utur e.
2.Resour cesust ainabi li
t y:Thi sreferst ot heabi l
ityofr esour cest orenew
themsel v es.
3.Impactsust ainabi lity:Thi sr eferst otheabi l
i
tyoft heimpactt ocont i
nueand
bel ongl astingwi thoutput ti
ngi nmor eef f ort
sorr esources.
Therefor efinanci al sust ainabi li
tyofanent er pri
semeanst hatt hesoci al
entr
epr eneuri sabl et omeett hecur rentneedsoft heent er pri
seandt hatofthe
fut
ur ehencet her ol esi ncl ude:
I tenhancesf ur theri nv est mentoft hesoci al enterprise.
I tpr ovidest hemeansofi ncomet osust aint hest akehol dersoft he
ent erprise.
I tleadst osust ai nempl oy mentcr eati
on.Thi sincreasesi ncomef ort hose
thatar eempl oy ed.
I tleadst osust ai nabl epr ofit
sf orthesoci al enterpr i
se.Thi shel pssuchan
ent erpriset ocont inuei mpact ingt hedi sadv antagedgr oups.
I thel psi nt rai
ni ngofmember soft hecommuni ty.Thisleadst osust ainable
posi tiveimpacti nt hecommuni ty
.
I thel pst hesoci al enter pr i
sest oachi ev et heov erallai
msofcr eatinga
sust ainabl eposi ti
v eimpacti nthesoci ety .Thisr educest hreatslikepov er
ty
discr i
mi nat ion.
I tfaci l
it
at essust ainabl ehel pi
ngoft hedi sadv antagedgr oups, thismaybei n
for m ofpr ov i
dingi ncr easedaccesst ogoodsandser vi
ces, increasedaccess
toeducat ionet c.