DAY 2

WELCOME BACK
 DAY 2: CREATIVITY AND INNOVATION
 SESSION OBJECTIVES
 The meaning of creativity
 Limitations to the use of creativity
 Creativity and innovation
 Definitions:
 The ability to create - creation by means of imagination.
 The ability to break through self-limitation and allow oneself to see relationships and patterns so
that something new could arise, that has a specific, though not necessarily monetary value.
 Developing new ideas.
 The ability to relate views, facts and judgments in a new way which is transferable.
 CLASS ACTIVITY
 Connect the nine dots in such a way that they will be connected
with four straight lines without lifting your pen and not rearranging
them.
 CONSTRAINTS
 This exercise strikingly illustrates the problems many people have with creativity. A few get to the
solution relatively fast whereas others never get there. This is because they constrain themselves.
Next, a number of these constraints is discussed:
 Wrong assumptions: One of the most important causes of being unsuccessful with the exercise is the
assumption that one has to remain within the area of the square.
It was never mentioned that one had to do so. It is remarkable how many people make this wrong
assumption. Again because people assumed that the lines should pass through the middle of the
dot, which was not a demand.
 Desiring to solve the problem too fast: Once people are confronted with a problem they are prone
to wanting to solve it as fast as possible. They often have a clear view in their mind of what needs to
be done. But they fail to consider alternative solutions and, of course, the possibility that some ideas
or suggestions might provide better solutions.
 Too much faith in rationality: in western culture rationality is important. Logical reasoning, common
sense and attention to figures are more appreciated than guts, intuition and creativity.
Pupils at school need to answer questions in the way the answers are described in their manuals. TO
MAKE NEW RELATIONSHIPS, TO DEVELOP IDEAS OR TO CRITICISE GENERALLY ACCEPTED knowledge IS
NOT APPRECIATED AND SOMETIMESPUNISHED.
The same applies to companies and government institutions. Accurate knowledge of figures,
analytical skills, etc. Are the dominant demands.
 FAILURE TO BELIEVE THAT YOU ARE CREATIVE: Most people fail to believe in their own creativity. This
has various causes. Some people work under so much pressure that they continuously work under
stress. Stress does not only affect one’s health, but also the ability to be creative and objective.
There is simply too little time to conjure up alternative solutions to problems, let alone to logically
organize these.
 LIMITATIONS TO THE USE OF CREATIVITY
 Examples of behaviors that prevent creativity and idea generation
 Continuous search for the right answer;
 Problem solving is a very serious issue and does not allow playing with ideas;
 Avoiding errors at the costs of everything;
 Even when one is exhausted, one cannot stop attempting to solve the problem;
 Consulting of experts only;
 Exclusion of any apparently obscure idea;
 Forgetting to put ideas on paper;
 Discussing one’s ideas only with those people who will agree for different reasons;
 Remaining silent when something is not understood;
 Sitting on one’s laurels when all proceeds as desired.
 Examples of Behaviors that stimulates creativity and idea generations
 Looking for as many answers as possible;
 Tackling problems with enjoyment and courageously playing with new ideas;
 Accepting errors as an obvious consequence of a creative process;
 Using pauses and alike to release steam from the kettle;
 Collecting data from various sources;
 Postponing judgment of ideas until the evaluation of alternative solutions;
 Putting all ideas mentioned on paper;
 Sharing ideas with critical people and looking for feedback from different people;
 Not being afraid of asking “stupid” questions;
 Always trying to improve quality.
 What is the difference between creativity and innovation,
 Innovation
 Innovation is the application of better solutions that meet new
requirements, unarticulated needs, or existing market needs.
 Innovation is the process of adding values to existing products or
services.
 It is the act of staying and maintaining organizational edge/
relevance over competitors
 UNLOCKING ENTRERENUERIAL COMPETENCIES
 SESSION OBJECTIVES:
 Participants will be able to Identify their personal strengths and weaknesses;
 To observe Opportunities and Threats around.
 To be able to set SMART goals;
 Identify obstacles to achieving goals;
 Propose strategies/solution to overcome such obstacles.
 To access business opportunities.
 Participants will develop business confidence.
 ASSESSING BUSINESS OPPORTUNITIES (TOWER BUILDING GAME)
 SESSION OBJECTIVE:
 Establish the relationships that exist between a business, its owner (entrepreneur) and the
society within which the business is located.
 VALUE CHAIN DEVELOMENT
 SESSION OBJECTIVES
 To explain to the participants:
 The meaning of value chain.
 The steps in achieving competitive advantage through value chain.
 The value chain support market.
 VALUE CHAIN
 Is the link between upstream and downstream supplies that translates into activities that
produces competitive advantage through which utility is added to products or services.
 The primary value chain activities are:
 INBOUND LOGISTICS.
 OPERATIONS.
 OUTBOUND LOGISTICS.
 MARKETING AND SALES.
 SERVICE.


 NOTE:
 The value chain analysis is undertaken to understand the behavior of costs and sources of
differentiation.
 Inbound logistics: receiving and stocking of raw materials and their distribution to
manufacturing as they are required.
 Operations: the process of transforming inputs into finished products or services.
 Outbound logistics: the warehousing or stocking and distribution of finished goods.
 Marketing and sales: the identification of customer needs and the generation of sales.
 Service: the support of customers after the products or services is sold to them.
 Steps in achieving competitive advantage through value chain
 A competitive advantage may be achieved by reconfiguring the value chain to provide lower
cost (cost advantage) or better differentiation.
 COST ADVANTAGE: by better understanding costs and squeezing them out of the value adding
activities. This can be achieved by reducing the cost of individual value chain activities or by
reconfiguring the value chain. The cost drivers related to the value chain activities which the
business must control better than the competitors in order to develop a cost advantage
include economics of scale, geographical location, timing of market entry, interelationships
among business units etc.
 Differentiation: By focusing on those activities associated with core competencies and
capabilities in order to perform them better than the competitors.
 Differentiation advantage can arise from any part of the value chain e.g. procurement of
inputs that are unique and not widely available to competitors can create differentiation.
 This could be achieved by either changing individual value chain activities to increase
uniqueness in the final product or reconfiguring the value chain. Drivers of differentiation
include policies and decisions, linkages among activities, timing, location etc.
 VALUE CHAIN SUPPORT MARKET
 Linkages between value chain activities: value chain activities affect one another e.g. one value
chain activity often affects the cost of performance of other ones. Consider the case in which the
design of a product is changed in order to reduce manufacturing costs. Suppose that the new
product design result in increased service costs. The cost reduction could be less than anticipated
and even worse, in fact, there may be costs increase.
 Outsourcing value chain activities
 A business may specialize in one or more value chain activities and outsource or delegate the rest.
Outsourcing is based on a good understanding of the business’s strengths and weaknesses in each
activity, both in terms of cost and ability to differentiate.
 The following should be considered when selecting activities to outsource
 Whether the activity can be performed cheaper or better by supplier.
 Whether the activity is one of the firm’s core competencies from which stems cost advantage or
product differentiation.
 The risks of performing the activity in house.
 If the activity relies on fast changing technology or the product is sold in rapidly changing market, it
may be advantageous to outsource the activity in order to maintain flexibility and avoid the risk of
investing in specialized assets.
 Whether the outsourcing of an activity can result in business process improvements such as reduced
lead time, higher flexibility, reduced inventory, etc.
 RECORD KEEPING
 SESSION OBJECTIVES;
 Workshop Participants will be able to know the meaning of record keeping
 To be able to know the importance of record keeping
 Know the various types of record keeping
 RECORD KEEPING
 Record Keeping is the act of documenting all activities of the day-to-day running of businesses. It
involves documentation of receiving, purchasing, collecting, giving and selling on behalf of the
business. Such documentation must be available and usable throughout the lifespan of the business
and beyond.
 IMPORTANCE OF RECORD KEEPING
 It gives a clear picture of the finances of a business and other transactions .so you can compare
daily, weekly, & monthly sales and purchases.
 Can be used as a tool to convince others (e.g. banks) on how the business is operating.
 It assists entrepreneurs in the development of business plan (expansion).
 Makes it easy to account for money borrowed or donated.
 Serves as a basis to monitor the progress of the business.
 It alerts an entrepreneur about when payments and amounts should be made or collected.
 It allows you to easily determine the assets and liabilities of the business.
 It makes easy to know how much capital has been invested.
 Without such records, it might be difficult to prove how resources were spent/invested.
 Record kept in a business is one of the most important management tools.
 The only way to be absolutely sure that all the little details are being kept track of is to keep track of
them yourself.
 TYPES OF RECORD KEEPING
 There are four basic types of record keeping. These include cash book, day book, receipt and petty cash
voucher.
 Cash Book: A cashbook is used for recording all of the business transactions. It includes all records of receipts
and payments of cash. There are four major types of cash book: singe column cash books, double column cash
books, three column cash books and petty cash books.
 Single-column cashbook: this cashbook has only 2 sides; one for debit and one for credit. The left hand side of
the cashbook is the debit side and right and the right hand side is the credit side. All cash received by the
business are debited, while all cash payments are credited.
 2. Day book: Daybooks record daily business transactions. There are four major types of Daybook: purchase
daybook: sales daybook, return inwards daybook; and return outwards daybook
 Purchase Daybook: it is a book used in the recording of individual credit purchases. Every purchase made on
credit must have a relevant invoice and the content of the invoice is copied into the daybook.
 3. Receipts: there are two different types of receipts: receipts from sales and receipts from purchases.
 Receipts from sales: when a sales receipt book is kept, then one must keep a separate receipt for every sale.
The original sales receipt is for the customer, while the duplicate copy of the sales receipt is kept as a record.
Only one sales receipt book should be kept at a time. When the book is completely finished, it should be placed
in a safe as a record of sales. A new book is then started. This type of receipt will contain the item bought, when
it was sold, name of the buyer, price of each item sold, and total amount sold or revenue from sales in each
defined period.
 Receipts from purchases: for each purchase that is made, a receipt should be kept. The receipt should be kept
in a safe place. The receipt will contain the following information: what item was bout; when it was bought;
name of the supplier; the price of each item bought; and the total amount of money spent in each defined
period.
 4. The petty cash voucher- is used for day-to-day purchases in a business or organization. The petty cash
voucher is used for purchases involving small amounts of money.
 INTRODUCTION TO BUSINEES ENTERPRISE
 SESSION OBJECTIVES
 To provide workshop participants with:
 Meaning of business enterprise.
 Types of business enterprise with their characteristics.
 Factors to be considered before setting up a business enterprise.
 Business Enterprise
 Business Enterprise is an operating entity within a business environment
dedicated to making profits from the sales of goods and services.
 Business is the exchange of needs for profitability.
 It is about satisfying the needs of the parties involved.
 TYPES OF BUSINESS ENTERPRISE
 Sole Proprietorship
 Partnership
 Cooperative Society
 Corporation
 Joint Stock Company
 SOLE PROPRIETORSHIP CHARACTERIZED BY
 Enjoys relative freedom from government control.
 Enjoys generally no income tax on business debts.
 Unlimited personal liability for business debts.
 May experience termination upon death of owner.
 Owner is mostly the entrepreneur and general manager.
 One person is sole owner.
 PARTNERSHIP CHARACTERIZED BY
 Is a type of unincorporated business organization.
 Two or more persons are owners.
 Some owners may be active in management, others only as financiers.
 Partner’s rights and duties defined by partnership agreement.
 Unlimited personal liability for business debts.
 May experience termination upon death of any one of the partners.
 COOPERATIVE SOCIETY CHARACTERIZED BY
 It is autonomous.
 It is an association of persons.
 Members meet their common social, economic and cultural needs.
 It is a jointly own and democratically controlled enterprise.
 It is primarily controlled by board of directors.
 Equity is derived from members.
 It is operated for the benefit of members.
 It allocates surplus or profit to members base on the volume of transaction each member does with the cooperative (patronage return).
 It enjoys perpetual succession (board and members come and go but the cooperative lives on).
 FACTORS TO BE CONSIDERED BEFORE SETTING UP A BUSINESS ENTERPRISE
 Market (Demand)
 Associated Risk
 Capital
 Legal Requirement
 Knowledge of the Business
 Personnel
 Raw Material
 Technology/equipment/machinery requirement.
 Security
 Government Policies
 Location
 Business Environment(social, cultural & economic needs)
 Defined Roles of Family and Friends/Associates
 INTRODCTION TO SMALL BUSINESS ENTERPRISE
 SESSION OBJECTIVES
 The participants will understand the;
 Meaning of small business enterprise and its characteristics.
 Benefits derivable from establishing a small business enterprise.
 Problems/challenges associated with small business enterprise
with possible solutions.
 Small Business Enterprises
 A Small Business is one characterized by:
 Small capital requirement.
 Small personnel requirement.
 Few Assets requirement.
 Low market impact.
 The Central Bank of Nigeria defines small and medium enterprises in Nigeria according to asset
base and number of staff employed. The criteria are an asset base between N5 million and
N500 million, and a staff strength between 11 and 300 employees.
BUSINESS MODELLING
 Business modeling is a company’s plans for making a profit. It identifies the products or services
the business we sell, the target market it has identified and the expenses it anticipate.
 A business model is a company core strategy for profitable business.
 A business model describes the rationale of how an organization creates, delivers and captures
value, in economic, social, cultural or other contexts.
 Examples of business modeling
 Business plan template