Addis Ababa Science and Technology University

College of Natural and Social Sciences

DEPARTMENT OF ENGINEERING
Entrepreneurship Individual Assignment

SECTION Q1
Name: Yeab Genanew
Student ID: ETS 1633/14

Submitted to: Dr. Afewerqe Getachew

Submission date; November 9, 2022
 Assignment
Approach one local entrepreneur, ask her/him about her/his
business and address the following points:
1. Provide brief background about the business
and the owner.
2. What is the source of her/his business idea?
3. What needs is she/he serving?
4. Which market segment is she/he targeting?
5. What is the source of finance for her/his
business?
6. What were the main challenges for her/his
business? And how did she/he manage to
overcome them?
7. What lesson can you take from this story?
 1. Provide brief background about the business and the owner.
Business: Impact Real Estate
Owner: Genanew Alemnew
Genanew was an architecture student at Addis Abeba University when he
began selling various types of house designs and other interior designs to
large construction companies. He then intended to start his own business,
but he wasn't sure whether it would be a consulting or construction firm.
However, in 2003, he started the business with a childhood friend in his
home without any equipment or enough PCs. In 2003, he founded Shigez
Consultancy PLC, a firm that focuses on architecture and construction
consultancies and also designs large projects in Ethiopia, such as the
Haramaya University Sport Academy, Bahir Dar University Sport Academy
(Stadium), Maritime, AwAbadir International Stadium, and many others.
After establishing Shigez, he opened Impact Real Estate with a friend, and
the company has now built around 30 apartments and a lot of houses
around Bahirdar and Addis Abeba, as well as big projects in the future.

2. What is the source of her/his business idea?

He was motivated to start his business due to the lack of apartments and
infrastructure in the early days. As an architecture student, he saw this as
an opportunity to use his creativity to build amazing infrastructure and
change Ethiopia into a better developed country. He was also inspired by
various international architects in other countries, which pushed him to
improve his abilities.

3. What needs is she/he serving?

His company provides various apartments and houses in various locations
that have very nice weather and a good community, such as on the shores of
Lake Tana. This company also advises people who want to buy houses or
apartments so that they make the best decision possible.

4. Which market segment is she/he targeting?

Real estate companies target a market segment that is interested in
purchasing, leasing or managing commercial real estate. The real estate
company must understand the needs and wants of their target market to
create an effective property marketing strategy. There are several ways to
target a market segment, including using market research, surveying
potential customers and using focus groups.
 5. What is the source of finance for her/his business?
When it comes to real estate, the first thing to consider is the source of
financing. When it comes to where the money for your investment will
come from, it is critical to have a solid plan in place. Genanew used his
personal savings to purchase his first computer and design materials.
However, for the infrastructure, he had several sources of income,
including bank and insurance company loans. However, he persuaded
other wealthy individuals to invest in his company in exchange for a
percentage of the company's stock for the first five years, which boosted his
business and helped him advance in his career.

6. What were the main challenges for her/his business? And how
did she/he manage to overcome them?
Impact Real Estate has faced many challenges throughout the years. The
biggest challenge has been how tumultuous the market is, how quickly it
can change. Along with that, is the challenge of making sure that you are
always on top of the market, so that you can give your clients the best
service possible. The other big challenge is the low inventory of housing.
This has led to an increase in prices and a decrease in affordability. Another
challenge is the rising interest rates. There was also the Covid Pandemic
and the Ethiopian War, which caused a major financial crisis for the
company. However, because the population is growing and people are
looking for houses and also luxurious apartments, Real Estate has been
able to maintain its composure in difficult times and grow even larger.

7. What lesson can you take from this story?

I learnt that in order to be successful as an entrepreneur, it is essential to
have a clear understanding of what it takes to run a business. This includes
having a clear vision for your business and being able to articulate your
business plan to potential investors. Being able to effectively communicate
your ideas is crucial in securing the funding necessary to get your business
off the ground.
In addition to having a strong understanding of the entrepreneurial
process, it is also important to be passionate about your business concept.
Having a genuine excitement for your product or service will help you sell
your vision to others and inspire them to believe in your ability to create a
successful company.