August 19, 2022 [ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT /ASSIGNMENT 02]

DEPARTMENT OF MBA

Entrepreneur and Enterprise Development

Assignment -II

Name ID No:

Betelihem Firdu Sibehat…………… MBAO/1563/14B

Submitted To: Ram Kumar Didde(Ph.D)

Submission Date: August 19, 2022

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 August 19, 2022 [ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT /ASSIGNMENT 02]

Contents
1. Discuss the impact and role of entrepreneurship on the economics growth in Ethiopia........................1
1.1 introduction.......................................................................................................................................1
1.2 How does entrepreneurship impact the economic growth?.............................................................1
1.3 What is the role of entrepreneurship in the economic development of Ethiopia?...........................2
1.3.1 Role of Entrepreneurs in economic Development......................................................................3
2. Entrepreneurship skills acquisition and products innovation in Ethiopia................................................4
2.1 introduction.......................................................................................................................................4
2.2 Entrepreneurship skill Acquisition in Ethiopian context..............................................................4
2.2.1 Characteristics and skills of entrepreneur:.................................................................................5
2.3 Entrepreneurship products innovation in Ethiopia......................................................................5
3. Create an own business idea and write a summary how uniquely conduct it.........................................6
3.1 Introductory Page /Business Information..........................................................................................6
3.2 Executive Summary of the business..................................................................................................7

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 August 19, 2022 [Entrepreneurship And Enterprise Development /Assignment 02]

1. Discuss the impact and role of entrepreneurship on the economics

growth in Ethiopia
1.1 introduction
 Entrepreneurship can help for successful implementation of all the economic resources. More
specifically, human being can be better off, educated and modernized through
entrepreneurship. Government and individuals need to know that money can also be created
when there is entrepreneurial activity
 Entrepreneurship is a process. It is a continuous process which is related to the development
and continuity of business. Other tasks or responsibilities are accomplished by people who
are accountable and responsible. But tasks that are done under entrepreneurship are
accomplished by entrepreneurs who take full responsibility and who effect change. This is
because Entrepreneurship is related to starting a new business to produce new products and
give new services. What makes entrepreneurship what it is, is the unique way that creates the
new products and services. The major sources of wealth and development for human being
are land, manpower, capital and entrepreneurship. The first three can be easily seen,
measured and acknowledge.
 Entrepreneurship, however, is something that cannot be easily identified, measured and
recognized. There is no consensus in defining the word entrepreneurship

1.2 How does entrepreneurship impact the economic growth?

 Entrepreneurs are important to market economies because they can act as the wheels of the
economic growth of the country. By creating new products and services, they stimulate
new employment, which ultimately results in the acceleration of economic development.
Entrepreneurship can be considered a national asset, and entrepreneurs are the drivers of
that asset for any country.
 It is a dynamic process that not only increases wealth and but can also create value that
results in improved well-being.  Entrepreneurship plays an important role in changing
society, so it makes sense to cultivate, motivate, and remunerate this greatest asset to the
greatest extent possible. 
1. Entrepreneurship Accelerates Economic Growth

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 Entrepreneurs are important to market economies because they can act as the wheels of
the economic growth of the country.
 By creating new products and services, they stimulate new employment, which
ultimately results in the acceleration of economic development. So public policy that
encourages and supports entrepreneurship should be considered important for economic
growth
2. Entrepreneurship Promotes Innovation
Through the right practices of research and development, entrepreneurs bring new innovation
that opens the door of new ventures, markets, products, and technology. Entrepreneurs have a
role to play in solving problems that existing products and technology have not yet solved. So by
producing new products and services or bringing innovation to existing products and services,
entrepreneurship has the potential to improve peoples’ lives. 
3. Entrepreneurship Can Promote Social Changes 
Entrepreneurs change or break the tradition or cultures of society and reduce the dependency on
obsolete methods, systems, and technologies. Basically, entrepreneurs are the pioneer of bringing
new technologies and systems that ultimately bring changes to society.
4. Entrepreneurship Promotes Research and Industrial Development 
Along with producing new business ideas and thinking out of the box, entrepreneurs also
promote research and development. They cultivate their ideas, shape them into a new form, and
turn them into a successful business endeavor. 
5. Entrepreneurship Develops and Improves Existing Enterprises
We often think of entrepreneurs as inventing totally new products and ideas, but they also impact
existing business. Since entrepreneurs think differently, they can come up with innovative ways
to expand and develop the existing enterprises. For example, modernizing production processes,
implementing new technology in the overall distribution and marketing processes, and helping
the existing enterprises to utilize existing resources in more efficient ways.  

1.3 What is the role of entrepreneurship in the economic development of Ethiopia?

Entrepreneurship can help for successful implementation of all the economic resources. More
specifically, human being can be better off, educated and modernized through entrepreneurship.
Government and individuals need to know that money can also be created when there is
entrepreneurial activity

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1.3.1 Role of Entrepreneurs in economic Development

 Wealth Creation and Sharing: By establishing the business entity, entrepreneurs invest
their own resources and attract capital (in the form of debt, equity, etc...) from investors,
lenders and the public. This mobilizes public wealth and allows people to benefit from the
success of entrepreneurs and growing businesses. This kind of pooled capital that results in
wealth creation and distributions is one of the basic imperatives and goals of economic
development.
 Create Jobs: Entrepreneurs are by nature and definition job creators, as opposed to job
seekers. The simple translation is that when you become entrepreneurs, there is one less job
seeker in the economy, and then you provide employment for multiple other job seekers. This
kind of job development.
 Promotes capital formation: Entrepreneurs promote capital formation by mobilization the
ideal savings of public which is very essential for the industrial and the economic
development of the country.
 Creates Large-Scale Employment Opportunities: Entrepreneurs provide immediate large
scale employment to the unemployed which is chronic problem of under developed nations
Promotes the balanced regional development:
 Reduces concentration of reduces economic power: Economic power is the natural
outcome of industrial and business activity.
 Wealth Creation and Distribution: It Stimulates equitable distribution of wealth and
income in the interest of the country to more people and geographic areas .
 Increasing gross national product and per capital income: Entrepreneurs always look
out for opportunities they explore and explicate opportunities, encourage affective resource
mobilization of capital and skill.
 Improvement in the standard of living: increasing in the standard of living of the people
is a characteristic feature of economic development of the country.
 Promotes country export trade: Entrepreneurs promoting help in a country export trade
which is an important ingratiate of economic development.
 Entrepreneurs create new business: stimulation of related businesses or sectors that
support the new ventures adds to for the economic development. 12. Facilities and over all
development: entrepreneurs act as catalyst agent for change which results in chain reaction..

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2. Entrepreneurship skills acquisition and products innovation in Ethiopia

2.1 introduction
The concept of entrepreneurship played a formative role in the emergence of business history as
a distinct academic field. Entrepreneurship is a process of wealth creation for an individual,
community and the large society. 

Innovation: Innovation in its modern meaning is "a new idea, creative thoughts, new
imaginations in form of device or method". Innovation is often also viewed as the application of
better solutions that meet new requirements, unarticulated needs, or existing market needs.
Entrepreneurship: The activity of setting up a business or businesses, taking on financial risks
in the hope of profit.
Skills: A skill is the ability to carry out a task with determined results often within a given
amount of time, energy, or both. Skills can only be innate. Skills can often be divided into
domain-general and domain-specific skills.
Acquisition: The learning or developing of a skill, habit, or Quality.

2.2Entrepreneurship skill Acquisition in Ethiopian context

Entrepreneurial skill acquisition can be defined as not just about acquiring skill but acquiring
knowledge and driving towards enterprise in skills that enhance personal livelihood through
enduring business startups, enhancing employment opportunities, and promoting economic.

Entrepreneurial skill acquisition is also the ability to of a person to exploit an idea and create an
enterprise (Small or Big) not only for personal gain but also for social and developmental gain.

The Ethiopian entrepreneurship segment comprising of SME’s, startups, first generation

entrepreneurs at those look into expand their family business is a staving and dynamic part of
Ethiopian economy. Both favorable and otherwise have impacted the segment. Entrepreneurship
is the creation or extraction of value.

The entrepreneur who is a business leader looks for ideas and put them into effect to
fostering economic growth and development. Entrepreneurship is one of the most
important input of economic development. The entrepreneur acts as a trigger head to give
spark to economic activities by his entrepreneurial decision. He plays a vital role not only
in the development of industrial sector of a country but also in the development of farm

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and service sector. An entrepreneur can be regarded as a person who have the initiative
skill and motivation to setup a business or enterprise of his own and who always look for
high achievements. He is the catalyst for social change and works for the common good.
They look for opportunities, identify them and seize them mainly for economic gains. The
entrepreneur supplies risk capital as a risk taker monitors and controls the business
activities.

2.2.1 Characteristics and skills of entrepreneur:

 Entrepreneurs are like gamblers, and like any other gambler, their chances of winning
increase if they have the right cards.

 A tolerance for risk taking is a necessary attribute for entrepreneurs. You can think of
risk taking as pursuing an activity even if there is a chance of a negative consequence.
Starting a business is risky and even more so, when you are using your own money.

 Entrepreneurs also need creativity. Successful entrepreneurs innovate in one of two

ways. Firstly they can bring an entirely new product or service to the market like the
first cellular phone, on the other hand they can radically improve upon something in a
dramatic way.

 Initiative is also required. Entrepreneurs lead. If you are not willing to start without
being pushed, your new business will never get off the ground.
2.3 Entrepreneurship products innovation in Ethiopia

One of the key requirements for entrepreneurial success is your ability to develop and offer
something unique to the marketplace. Over time, entrepreneurship has become associated
with creativity, the ability to develop something original, particularly an idea or a representation
of an idea. Innovation requires creativity, but innovation is more specifically the application of
creativity. Innovation is the manifestation of creativity into a usable product or service. In the
entrepreneurial context, innovation is any new idea, process, or product, or a change to an
existing product or process that adds value to that existing product or service.

In the entrepreneurial context, innovation is any new idea, process, or product, or a

change to an existing product or process that adds value to that existing product or
service.

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A cost-effective and self-governed community approach provides a pathway, tools

and the mindset for marginalized youth and refugees to shape a vision for their
future and create new solutions in form of social enterprises with benefit to society
and the environment.

Entrepreneurs are people of entrepreneurial skill who are working as private or

government employees. These are people who have positive attitude and are successful.
They produce ideas, widely keep resources, free from corruption and favoritism and
effectively lead production activities.

The number of these type of people in our country is very small. In contrast there are
many others who waste resources, favoring to people, waste time, disrespect customers,
rigid and claim that they are all rounded. These people use their positions to facilitate
their benefit. They also forget that they are employees of the customers or the society at
large. The number of non visionary and unskilled employees, coordinators and leaders of
work is large. They do not question to legitimacy of the salary they get simply by
operating at the work place. As a result of these the base of entrepreneurship in Ethiopia
is narrow.

Generally, today the government of Ethiopia, in the coming ten years strategic plan they plan to
increase more number of entrepreneur in the country. The government working with different
stakeholder’s i.e internal and external to promote the entrepreneurships in the country.

3. Create an own business idea and write a summary how uniquely conduct it

3.1 Introductory Page /Business Information

Name of Company Madda Walabu Road Construction
Business Address Robe Bale, Oromia, Ethiopia

Telephone No. +251910963265

Form of Business Ownership Partnership

Main service 1. Road construction

2. Dam construction
3. Bridge construction

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4. Others

3.2 Executive Summary of the business

Madda Walabu Construction Company is a national construction company that has its head
quarters in Robe town, Oromia, Ethiopia. The fact that we are based in the Robe does not in any
way restrict our scope of operations to the others town or region. .
We are a national construction company and we work for our clients (governments and private
sectors) in any part of the country. Madda Walabu Construction Company will be specialized in
the constructions of bridges, stadiums, roads, dams and estates et al. As a matter of fact, we are
going to be known for delivering country class structures all over the globe. Creativity,
excellence and timely completion of construction projects will be our signature.
We intend starting our construction business on a small scale in bale and east bale zone, but we
have a bigger picture to have our presence in any part of the country that our clients wants us to
work. As part of our plans to make our highly esteemed customers our number one priority and
to become a national construction brand, we have perfected plans and strategies that will enable
us work with our clients in delivering projects that can favorably compete with the best in the
industry at an affordable and reasonable price within the stipulated completion date barring any
unforeseen circumstance. Madda Walabu Construction Company is fully aware that starting a
construction business requires huge capital base, which is why we have perfected plans for
steady flow of cash from private investors who are interested in working with us. We can
confidently say that we have a robust financial standing and we are ready to take on any
construction project that comes our way, as long as the project is duly commissioned by the
required authority. Madda Walabu Construction Company will be by managed by the principal
partner; Engr. Ketema Abera and other partners. They also have plans in the pipeline to sell the
shares of the company in the nearest future to interested investors who would want to be part
owners of the company. Before starting his own construction company, he was a senior project
manager and consultant with one of the construction company based in Ethiopia. Initial the
construction start up with 10,000,000.00 ETB birr.

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