enurepreneurship Preven, ae . Ss reansor Vion Je fom elcing wer bites Ditters ven diferent definitions © this WOR bu st authors ave sive oe Irepreneurship is simply defined #8 'De CE i wide deGniom of entrepreneurship management of'sallbusinses re earns of a bsies ies crideiction of baal es iotske advantage ofthe ofa busines opportunity ad puting inact oF an economy, Consequently, Business ig {dea or oppotuity within an i eign stn proucsion of goods oc provision of services fae upset ailing Abusnesscanbe ih or level andi canbe miro, small. esis or lage depening os evel Thereare many viewsof what ismeantby the trmetrepreneurshi, seneof which aisuponbiginess evelopmtaspess While others fecusupo enteral bhaviour whichmay inked setivites of thos inthe non-commercial sectrsas wells commercial sectors, Also enreprencusip canbe ees fom of ehiou concemed ile systematic asin of business opponuniis os a et oF personal characteristics, copitve ye, attributes or motivations (euchasriktking or being eat ede )fentepreneurs Inthe eghtesnth century the French term entrepreneur was ist used by Richard Cantillon to described a ‘go-bsiween’ or a ‘between taker’ whereby they Bought goods at cera pices but soldat tuncertin prices (as when they purchased the goods ata give given price : Revulipee tty vous em fo, Soheor alee skand uncertainty ofa venture but kept the surplus soniractal aymens had been made. Later, the French 2 philosopher, lean-Baplist Say and others widened he conesptto rode not ony he bearing fs, hatls the planing, supervising xganizing, ardeven owning he factorsof production. Tesinetenth ‘enury vs frie time for entrepreneurial activity, technological vances during the industrial Revolution provided the impets for ontnved inventions and innovations shouldbe parila noted that mach ofthe literature inthe field ofenteprencurshipis rom the {US and Ewe, nth sts upon estes valesand “The study of entrepreneurship contnvesto row asa field of enquiry and remains one ofthe most ataetve areas of research in the management field There has been difficulty in reaching a consensus about an €Xaet definition of entrepreneurship and ithas been argued thatthe term “entrepxcneurship’ initsefhasthre evelsof meaning. Inthe fistevel, crnepreneusiprelesto small fims enterprises inthe second evs itgferstonew firm formation and athe third evel highest entails innovation and asystemaide coordinatia of complex production. Crepreneurhip obras smalhsiness,imovionafdreional and local development policy, Entrepreneurship is an approach tocme thativolves physical items. things that can be seen andean, cewhen he establish innovative besa in iitive ene Characteristics of Successful Entrepreneurs Fora business to succeed, tsentrepreneurmaters alot Stated below arethe key features or characteristics some of which entrepreneur must posses forhis business to succeed. 1. Creativity ability t originate nowideas. 2. Innovation ~ conversion of new ideas to realities oral “ATypesof Entrepreneur a Behav sneer of earercoeushi 3 aa Frees eitrs 20d we ba diferent yes of CEPR given by diferent ars. Tis book simply Stag enepenrship int main xo oases which are: Msi ang 1, Material Entrepreneurship: Material entrepreneurship a eee Good leadership camying fllowersalong wel. This ae Poa is Baggs eee Cuan aa ae ose naiig os nce parm. eee oerte ten > en ee SS mot ee fay Savion Bee cetet echt rap anid sieeve Ug) cig retire neal eae iesmtimalneyeiies An example of dret service isthe service rendered by a meet toa vehicle owner onhis vehicle, while an example ofan‘Complete hatred fr feilure and blocking of failure avery, Ability market andconvince estore. Interestinbusiess. Discipline inallaress Hunanrclaons Powerof ioesightandunderstaning Powerafpercepionandforssght Readiness and wilingresto ean toacvnce knowledge Good communiainabiliy Interestinreviewing snes postions for contol p and pplication ofeonrol mesures Deseinaion Possession ofhigh in izet quotient (Q) an logical ables ‘Locus of contol -imer drive o succeed and win. I ‘means how individualends to persive life or prt the areas where youare weak, youare to undergo taining and develop yourself tense enteprencural success in busines Suggs. ENTREPRENEURSHIP PROCESS 7 ‘You don't just become aneneprant OVE younesdto pass tough some stages. hich man cnepreneuip ces before jean become one. Thee may be many tke sepsinvoWed inthe Jpocessofbecominganenrereneu but crf std ndisigh fave shown tha there are seen basic stages which most pac trouser becoming enter “These stagesare 1ute inr°e 08 aSeag 7. Whelpsindv = ‘genes competition one bi : developments communities and nations neurship to Societies jy Nelaranisits wel Importance of Entre 12. _Whelpstoimproveficeny and eetivenessin operations: sion, while Keeping mites iii measles corer allows a nalion's resourees ‘as ano aration eee 1. ha a ier imp. si down resource wastage ination peeyareduces he economic problem of unemploymen JF 4, ithepstospportthe mach needed we community ste ornation her eae ak industrial production Iran popleand ids enrerenerial development fn tad isabie 2 ood ofthe community and nation Entrepreneurship Discouragement 5, tthelpsa nation o have improved foreign reser Some people are discouraged fom betoming entrepreneurs By ONeS i ‘or more of the following main reasons: plane of payments and balance of trades, va ines a Gross Domestic Eports GDP and exportation 44 _Enirpreneurship helps communicates and duce socio-economic crime such as robberies asso vith employment, thereby making the commu ations enjoy eltve peace. 5. Ithelpsintherevamping fa nation’s poor economy: prove the good ones 6 Ithlpsinte utlizaton ofa community ora nation’s resous Inhelpsto reduce urban migration, helps to reduce poverty, thereby increasing the st living ofthe ctizensofa nation thereby satis ofsuchnation ee 9. 9. _Itencourages the patronage of local goods and:when eswbishing busines. 2 Bvensotgoingsplamed edn delays ang — ne ea e. ives on what is meant by scat ern | i afogmabehaviourasehaCcharickensies; 2 4. Naneing robles perspet ovrepreneusi 5. radi orlackof nde infastctures oe 6. Managerestnficeny nal sis a nets cot anew business. These 7. Lackof acess to enowh funds ama ; Jk taking and resource alloeatio ee Lack ofer inadequacy of technica know how Resouces misappropriation, wastage and ilfering whic eadstolile orno profit forthe business ‘Change ngovemment which may ed tonconsstent {ngovernment polices and laws against entrepren Exposure to strong competition from other indisaset librium. Atcoch tag, hee woul the eed fr dieenk fates sth pehaps spt erinsvaivestarapormers ped Ps or conamercilingbsicreseuchand sigporive ene rene ‘clare’ inthe fist ae. nthe seeond phase theoleofpoices may tpt ensure universal aces tothe technological or other ‘ars OF “sof ineastictre or top to create markets and other microlevel pois inthe final ste theolemay boo ensuea stable the VPs ptpolces overtop buthere nedsto be integration between polices nd poliey actors, andalonssterm perspective theres higher productivity growth In this ven, a Sch ‘raston hypothesis een ugeestd where pethaps certain finnsinrodace aia novation, batter impactis magnify larg ims (hese age fms may have recently been smati org ces grew of arge ones tht ae particu agile.) Intemsof resource allocation ithasbeenagved thatthe role fy ceteprencuris ply to identifyprsitent shocks the envi ‘which eferlong-erm opportunities. andthen to syrthesizety | > ggtrepreneshipasa formof haviour Entreprenesriat | information and sion based upon it oa A pi Sti i icin SRA Nir Acne ecpsnersasthatfbeing idles o'salerttoal | posi andrpsized sarc orchanees ndinthe see “eset sme nila | ape rniehoes sel ofits aso been emphasized Inthis pepsi, key oleae gues “a sa inovaton. Docker (1985) argues tt an ‘entrepreneurship has ben seen anequibating force by restoring a en ‘makes eqlirium boughs procs of pie adjustment. et OF Process innovations) ; Later, clare Reduce or are,soexpertscoft bdo dt at namely ig, pattems of ein up such soil eerie 3. Entrepreneurship asasetofPersonal Characterig, +The Entrepreneur: The third set of perspective neprenerip fours upnthe esol halts, copnige style, penalty, andthe social and instutioal omextin which, ‘operates In the ancient times (nineteen centty ef, the ey Paholopcal tats of an entrepreneur werent. eI eaming, courage, consciousness, patience, perseverance, se iepting and selfrespeet. More recent psychological and sociological pprosches tenepreneusip conceust vp particular quit ‘raititudes; motivations; theirbeings ‘area! kar’ .or social force, ‘Thereare aio inksbetweenensepreneu’ cognitive syle how they Jeamorseknowiedgeandinfomation and theirstaiou. 4 Entrepreneurship as ownermanagement and SMMFs - Small Businesses: Fourth, entrepreneurship has afien bee considered as exompasng ier ofthe oar ofasmal bins Hovee: mosnew business pail ingovave. Thstyp of emtrepreneship canbe, watistermed, ‘oline Trench’ which inoles the wat cordnation tod management of an exiting busines, which operates in Wl ‘Sullished and clearly detnd markets Succesil all owe mange esa ow reply an charge ii management ad yer stratus, SMEs and te seemployed play am ‘norarirlinan nam insising proverb HOMEY, ‘eneconomy that can respond to technological, social, and economic: ‘pportnteso achieve more sstsnble niro-socie-ronomic “tlopments iy tos ineoportethe cri dams _and wealth creation of medium and large firms and also of thos alt firms that grow to become larger organizations. Sob iretatenn _an ‘ordinary’ routine owner-manager form one who i" ‘business. New and SMMEs are important 0TYPES AND NATURE OF BUSINESg OKUSANYA, A. O. Introduction Business ay be dfingcasthe organized effort by ndividuayy companicsa produce goods srics, 0° des; 10 exchange goods, serves, ardideas wth the relevant market fines any, setomerevard frbiserpized for. Therefore them ofbusiness organisations to prodce goods. scrvices, nd idea are beneficial tothe companies.ndvidals producing these goal, aly, these goosserviesideas sha sols the needs and wants fhe relevant market and consomen. services, and ideas. Adk Instartng any type of business, an entrepreneur need to decide eal enough regarding the legal form the business he/she should takes terms ofthe typeof business enterprises to engage in, Generally. ‘common types of business concerns to choose from are salt proprietorships, general partnerships, limited partnerships, jointstod| ‘companies or corporations, cooperative society, governmet! enterprises, specialized business and limited liability companies. According to Bie (190, themajorderences among best PS of business related to the nature of advantages and e3 and disadvantages 5, 20 Therefore height choice afhusiness nterribe depends onthe rare of the snd ‘objectives ofthe entrepeneus, prevailing legislations and other owner's! entrepreneur's proposed business, gos envionment Sues, and various tx and ibility SSUES, among thers ‘When business ownev/entrepreneur has assessed his business prospects, elshe may then decide to form ether an unincorpocsted tusines which does not requite special government permission to conduct such business, for example, sole proprietorship and partnership) or an incorporated business Cwhich requires special ‘government permission. suchas corporation type of business) Since business ony purpcef ety involves the we ofan asd non-human resources towards the achievement of set goals and “objectives. Themanagement of small business enterprise deals wth the efficient and effective use of human and non-human resources to achieve set goals.and objects in organisations that havemetthe criteria ‘ofall business 4 According o the Nigerian National Development Plan, a manufactaring cstablishenttha employsless than }0 people and whose investments ‘on machinery and equipment do not exceed N600,000 (six hundred ‘thousand naira) may be referred to asa small business enterprise ‘Also, Central Bank of Nigerian ts credit guidelines defined small ‘ruses emerprise as ny busines organiscton wth an annual tumoVer ‘oflesstharN500, 000, According io Okongwa(2001( small business “enterprises in Nigeria are classified with regard to employed labour ‘force and capita investment by the National Council on Industry. aFiduciary relationship: General partners stand ina fd telationship with each other. This means that partners partnership typeof business must act must with und Fp, poo! hits fess snd hen a eek ae Existence: general partnership doesn tlast foreverand cay be dissolved at the end othe specified term, om the death gp partner, or on other circumstances. After such dissolution ‘the partnership maybe required to terminate, and cease from existence Trasterabilty of ntrsts Gener parerhipnteea bad water and geal th eral arent provides there person tinottecomey pete ofthe panes bout ode fal or mon fhe prersin the presi business PTT prt as he parti Souls cee partnership income (ald pass-through taxation), tha avoiding the potential double taxation present inregular corporations. B._Limited Partnership eee ooo es tices Darren eee “Thisisthe yp of pres ht fuze ables fis ited tothe resources combate bythe ferme Inaimitedpannehip. however aston ofthe ares rosin anit iy inuicee eb the business can exend beyond the resnorees contributed by he (ltd parr Liited panes avis hts they mat pave he iho inthe management of teibainess but where they do. hey automatically ose hrf ably satus posses lie alysis Limited patnership typeof sal business can ise money fon passive insestor. wile allowing the general pares retain near total cone astohow the business s managed. Limited parnershipscan be good business how the business is managed. Limited partnership ean Be good business onganzatons especially for realestate businesses, but Tiited laity companies (LLCS) or corporations apically beter for operating businesses. Characteristics of Limited Partnerships “The following salient points typically characterize limited partnership ‘typeof small business enterprise:“entrepreneur should consider having the genera poration LLC. ‘Unlimited Partnership — This isthe type of partnership 2. Controtand management: Tile genera ing united satus. This means tat heats of errnesofthe businsar rt iitedioihe sores cob Sn nil er agreementean give he imite partners Various Voting typeof partnership is also referred to as limited! abil Panne? such asthe rightto approve the sale of the businessong Bina rel eee right to remove and repos he yor partner bit with alse oe ee {ypes one for tor matters (Hike nepligence claims), and he ote 10 Jat the sll business partners fom the partnerships blgations.Insome bsnessjursisons LPS ae Tae iid pore ship intrest Ud eb professional Themen at PSHE considered a “security” under federal securities law, fs lawyers and accountant an ony form them. LLP ar pica ‘compliance withihesciawsistheforeisunfimited. taxed as pass-through business organizations, with he partners. 00% Number of owners: The mimbsr of owners inal the busines orzanizatin, paying taxes on the business Seams ae. Unlimited panes runof the waitions limited parinerships TRE ae unlimited partners are also called general or a na i AdvantagesofPartnersBip Noose: The Lm 1. Easytocstablish anata rerun The limited parnerships partners’ rig | 2, ‘limited parnersip ype ot busines has the major Fiduciary relatianship: The genes! partner asa i (cust relationship othe limited parts Securit !Tostes are set for inthe limitedFewerreystationrequirementsthan companies stock Companies asa “More flexible than companics soit oo ins SD cineca cseanse de No oubie taxation as only owners, rather th Say esepotpene windrose LORS ‘ovenersand busses ae unease csi with

Nations! Petroleum Invesment Services (NAPIMS) Niger elewn Developmen Compan (PDO, Niger aor elem Comreny NPC). Nigerian Gas Company (NGC) ct 5 Investment companies: These avecompus neomporated by govermenttocstalishoffprng companies” subsidies and ivestinotherexisting companies, While naoniztindustes ae faders! government business concerns, goverment investment companies are mostly owned by reionsandsies Examples ofthis ‘ype busines are ua investment Company LL o¥ENB Oa, ‘Lagos, iti and Osun states constiuing a region, O90 State Investment Corporation owned by the Oyo Siate Goverament Gateway Holdings Ltd, owned by Ogun State Government and the sesuls mate on thes sles ar weds sme goverment jes fr bebe ofthe citzensfthe bank owning ovement Tre actvitesof marketing hoards reduce the ince that ooh peters and fortis econ marketing boards ave ben eased trie ise he income ofthe produces spciithe farmers to consequently ise ther standard of ving. Ths however makes ‘be suplss dual acu varios ovement om mating boards cease : SPECIALIZED BUSINESSES ‘Theseare snes haat nto indepndeiyhenay others are being operated. They must have a relationship whichis. ‘muta with other business associates before they can exist. vo— se 3... Higher probability of suxsess Because of Bod frashiser bi Failure or closure ofthe fancier sbusnescantead tothe ‘sy Joss business the franchisee Seo 4. Qualityproduetsorseices = oni 5. Froeadveisementandbusinessromotion: | ange offre ies teenie i 6 Posen asses fom fan: | Me Noir cstotivesmen oie, : 7. Suresoure of pais uF F poteopibe 1 toutieetnsalgaimmeretarrot omfg | 5, Cre ors emer motive un empoyeata ope 9, Business project ost reductions possible asthe eg tererand makemorepofiwhich anchisrseanbesifiom, eae icy criaincsviTteoiaiiag «. tsehtees ntti aaa exert franchise or franchisor, eiele ies of seal orcost acd tks prac which ete tock Ctl | EEEMORE ssving inl be glee e i tty ern ing wih FA eisai tea SSE aes : Franchise b sssible busi ste BARU NETRLA mea nines beret net elt ye ieineentees terete. 3. alot (2. Inflexbilityin product line. ' ‘business areas like sale: “Inflexbility in operacon. « 4. Lackofabsolute com ofindependence as he fanchise is caused penton cons 5 Cost y when anchisr continues to 6. si ests ran aENABLING ENVIRONMENT FOR SMALL, BUSINESS AND ENTREPRENEURSHIP MANAGEMENT. OSHO, 0. T. Industiainfastucue oc enabling enirmentisone ofthe many exvronments within which sal busines orznistions operate. The lemensofthe enabling emrnmen nue deci ransporaton, ammunition airs, oscar, and elueatonal “inffasocture, among oer. These elements ofthe enabling to-examine the adequacy or otherwise ofthese elements of he emblingenvironmentcrinduialnfasnacu.Thischaerenaines theproblems and prospects ond instucture in igs, 35. they constitute the enabling environment for efit andeflectve ‘panicipation in, and management of, sal busines enterpissin Nigeria. Wenow examine he problem ofindusriinfrasuctein Nigeainthe follovingazes ELECTRICITY Electric suppl exiting sal busines msn Nigeiaiuly inadequte and urcabe. Although National esis amet Authority (NEPA), now Paver Holding Company of Nigeria (PHN), ngminal peveration pest of 550 megavansfarexcets clients peak load demand of 2000 megawats, problems resting fom vansmissionand particulary distabuson neworkshave crete ‘uezesa ferences between demand rquremenand gene and delivered lec. The consequence of hiss that mow sal ‘snes enterprises nigeria operates ownelecrc uses. some cass, itis the PHCN's NEPA‘ elect thatison“stand= ‘by” while companies’ clectric generators are in nentEmployees, dishonesty andsloyalty a service and fraudulent practices. _ Application of poor wrong marking strategies, ete, would be treateningo profil dite og and threatening tothe suvval and continuity of busines, ss small or large level ean be affected by ary these et and sensitive to these signs or symptoms I failand the entrepreneur wil start seeking Faluetopay saris, wagesandperaon businesses cor delaysinsuch payment Increasing abouruenover _Absentesism and oe negative aie of employes to ‘ork and maragemest Inabiliy ose waders Cominuos we of ld machines or eqipment Comsinsousrecortngofleses Redundancy at work Loss fanchiseo tet his Solving Business Problems, ‘Toprevent the failure ofabusines, the problems ofthe Prablems Solving by Internal Means nat, beri noone pal yinA‘Typical Problem Solving Movtel Sensitivity toproblem symptoms sions Identification of any symptom available Gathering ideal altematives fom relevant bodies or quarry Considering the ideal alternatives or options onthe basis of theirfficacy (Choosing the best fom the altematives Applying the chosen altematives Reviewing the working of the option or options chosen in ‘terms oftheir effectiveness Controlling the working ofthe aliematves applied, ifneeded, ‘unt results ae achive, Problems analysis would be tested inalater chapter ofthis hook. Let ‘ffeeknow thata problem solving model doesnot gurantee the solution whats mostimportanis geting the right ideas and the mofthe ideas which te model ister. Ideas generation for those that are specially endowed with features like Addition method ~— Featuresmethod + Case study or historical method |. Brainstorming Method Thisinvlvshringingevensne inthe business ngethero solve the problem ofthe busines. Thiscan be individualistic orcoletive. is invdulisic where people re asked todo the brainstorming individually, wil itis group where ‘ios individ come together do it Brainstoming ean lo be grb or writen. Iti verbal whereit sepa scaly and itis ‘writen when itis eporedin wtng. 2. Open Group Method ~ this method is like a collective ‘brajstorming method excep that aleader or acoordinatoris toe, However he fllowing problems are prevalento saltiness epsationinthe county ~ Nigeria. 4, Avaitaitiy of Transportation: A good transporation systems needed frtimel sup ofa materilaneasy vacation ofnshed rots 1. Ineficenandeyslardlvryofcersin social serves seater, il power and cect. which seem stereo priate sector aneprencuhip, ‘The need to cur apparey overextended andencessive goverment intervention inthe ono. 3. Besterand optimum us ofthe available scarce natural ‘Consiration ofthe adequacy and cost of power, fel, water and electricity: Location near cheap and adequate supply of allthe above, willenable the business operators to operate smoothly. 6 Good climate: Consideration is given to suitability of ‘temperature, humidityand atmosphere forboth human beings aa - Lack of attention o research and design efforts bymany Proximity to business ofthe same class (group): Where her oneal eld whi a7 te eae business would benefit from the services of other businesses rose ad Ont aa he ‘round e.g. enjoy the same markets and facilities like ~ transporaton financial house, re-fightingequpment. waste disposal equpmentec,aleady being used by therbusinessLOCALISATION OF INDUSTRY IN WESTAFRICA ‘Localisation of industry isthe concentration of fms, usually prelucing similar products at one pariculr arc. Advantages of localization of Industry 1. Opportunity for division of labour and specialization: ‘When firms are close together it becomes possible for individual fms o specialize in single processesorinparticular Varieties of commodity. F.g inthe coton industry, some firms ar engagetin spinning, weaving ycingorsome cher Process and thishasbroughteven greater pcilization within these industries, A supply of skilled labour: Localisation of instr brings mo beings suplyof skilled labour forthe candy. A | new firm might establish tselfinaparticulararea because of firms nthe major industry, industries also leads to |market. Suchmarketing {touch with distant Provision of Infrastructures: Roos and socal amerites ae provided by the Firms othe goverment or bath Disadvantages of localization of Industry 1, Structural unemployment: An industry ay decline deta ‘fal in demand forts goods. Ifthe declining industry highly localized massunemosmentin tbe area may bethe a Unseen ili unemployment Such unemployment wil ‘workers cannot ony ther ob apart from those in which ty have specialize, Problems associated with cites and conurbations: rowns.ies ard conurbations develop when there exteme Iocalizatonof industey. Associated wit such densely {inhabited areas are problems of over-crowding, tale congestion, airand water pollution, robbery and the developmentofshums vith el her unbeathy en Tgetforenemy attack: Anarea whereas industry Forthecomfartofeustomers eat shighly neat because‘he same.path inthe manufscturing process. All the matrils arg seecived where needed in the assembly line. Allthe machines ae laced atthe point wher neded without unnecessarily moving productsorothermateriasin process. llth fnished products come to the assembly line at the same point However, factories which manufacture differen ype; notuse this type of arangerent, They m hichisalsoknowm asinisaiten manic each roduetakesaclifrent rout through he manufituring proces Unfinished product are moved from one machine tanahein fee location. Tn some cases some machines are kep! busy mostof the time. This often increases the cost, In any case, the planner will be guided with te rule of keeping Lnproductive movement ofmotralstobrestminimum. ‘He should frst ofall study their production line o see how closely they can be kept. The close proximity ofthese variable can help _preatlyinreducing the cos. LAYOUT FOR THE SERVICE INDUSTRIES industries doesnot take the same pattern. For Selon shop needs an attractive shop with enough 3 toaccommodate customers, tls needs enough DRESSING AND CONTROLLING OF PRODUCTION WORK (activities) rrllinvolves the planning ad contro of production actives inorder ‘oemabe the business operator achieve his aims atthe end ofthe day. Planning and contol for operations require an imporantinpat regarding the forecast of what we expect to happen ranging from day-to-day, and woek-to-week bass, te. Sin planing and onto or person ses mat ake pak ations of rodction, wun atone cooling inventors, proving aw material, labour rege fo cent proton rogaine linge eof wekesard mies Se dey, wee wet, mouth bss mB Stars andes, Sic we nok erin eS provide now capac tie ie pat {sth uso procton pln. Tee lant 1 plsforearetandimmdin ae operon z Intermediate ~ range plans to provide for ‘capacities of workers, raw- materials: