Eed 126 1 To Develop An Acquisitive Skills

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EED-126-1 - To develop an acquisitive skills
Entrepreneurship and enterprise development (Federal Polytechnic, Ilaro)
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INTRODUCTION TO ENTREPRENEURSHIP
EED 126
TABLE OF CONTENTS
Topic 1: Understand the meaning and scope of

Enterprise and Entrepreneurship
1. Define an Enterprise in its narrower and wider contexts;
2. Explain different forms of Enterprises;
3. Identify features of the types of enterprises identified;
4. Classify the different forms of enterprises into small,

medium and large enterprises as well as sectoral;
5. Explain the terms: Entrepreneur, Entrepreneurship,
Wage Employment, Self Employment;
6. Identify the facilities and opportunities available
for self employment;
7. Explain clearly the business terrain in Nigeria;
8. Evaluate the role of entrepreneurship in wealth creation.
Topic 2: Understand the History and Government Policy

measures at promoting Entrepreneurship in Nigeria
1. Trace the evolution of entrepreneurship development;
2. Explain the role of entrepreneur in developing enterprises

in Nigeria;
3. Compare Entrepreneurship in Nigeria with Japan, India,
China, Malaysia, South Korea, etc.
4. Explain Nigeria’s values in relation to Entrepreneurship;
5. Describe the role of Entrepreneurship in the development of
enterprises.
6. Explain Government policy measures at promoting
entrepreneurship in Nigeria
Topic 3: Understand the types, characteristics and rationale of

Entrepreneurship
1. Explain types of Entrepreneurs and their characteristics;
2. Explain the classes of entrepreneurship such as: Technological,
Exopreneirship;
3. Analyze life situations people may find themselves in and the
benefits to be derived from the above
situation;
4. Identify the different types of Entrepreneurs: self employed,
Opportunistic, Inventors, Pattern multipliers, etc.
5. Identify the role of Entrepreneurship in business,
society and in self employment.

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Topic 4: Understand the role of Entrepreneurship in

economic development.
1. Identify resources and constraints of Entrepreneurship;
2. Classify the resources into economic, human, knowledge
and time;
3. Explain how Entrepreneurship leads to import substitution
and utilization of local resources;
4. Explain how entrepreneurship leads to socio-economic
development;
5. Distinguish between economic development and
economic growth;
6. Explain the role of an entrepreneur in grassroots /

local economic development.
Topic 5: Understand Entrepreneurial Characteristics

and Attitudes
1. Explain the philosophy, values, scope, need and
characteristics of Entrepreneurship;
2. Explain the profiles of local Entrepreneurs;
3. Demonstrate high sense of innovation, creativity and
independence;
4. Explain the process of acquiring high sense of information
seeking and ability in operating an enterprise;
5. Identify various risks and remedies involved in operating
an enterprise;
6. Evaluate pilot project considering resource, time, personnel,
equipment, money, materials etc.
7. Explain constraints and problem solving techniques;
8. Demonstrate leadership and leadership skills by mobilizing
resources for establishing an enterprise;
9. Demonstrate high level problem solving techniques in
overcoming internal and external constraints.
Topic 6: Understand the Key Competencies and Determining

Factors for Success in Entrepreneurship
1. Identify the key competencies required in setting up a
successful small business; Knowledge, Skill and Traits;
2. Identify key success factors in setting up a small business;
Resources, Ability, Motivation and Determination, Idea
and Market etc.
3. Define individual life goals and link them to
Entrepreneurship;

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4. Identify the strength and weaknesses in 3 above;
5. Explain business games and how to play them

6. Explain the behavioral pattern observed in 5 above on:
a. Moderate risk taking;

b. Goal setting;
c. Learning from feed back;
d. Taking personal responsibility;
e. Confidence and self reliance.
Topic 7: Know the Motivational Pattern of Entrepreneurs

1. Define motivation;
2. List the objectives of motivation;

3. Identify barriers to motivation and achievement;
4. Explain Thematic Appreciation Test (TAT) scores;
5. Explain how to analyze motive strength from TAT score;

6. Explain the spirit of Achievement Motivation Test (AMT).

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TOPIC 1:
UNDERSTAND THE MEANING AND SCOPE OF ENTERPRISE AND

ENTREPRENEURSHIP
INTRODUCTION
This topic deals with efforts to comprehend the concept of enterprise
and its coverage which entail the process of combining resources:
human and materials to produce goods and services for some
economic gains. It is expected that the learners should be exposed to
the business world through enterprise building. Students learn to
identify features of the typical enterprises in their neighbourhood as
well as the facilities and opportunities available for self employment.
They should be able to identify successful entrepreneurs in Nigeria and
evaluate the role of entrepreneurship in wealth creation
SPECIFIC LEARNING OUTCOME:

1. Define an Enterprise in its narrower and wider contexts;
2. Explain different forms of Enterprises;
3. Identify features of the types of enterprises;
4. Classify the different forms of enterprises into small, medium and
large enterprises as well as sectoral;
5. Explain the terms: Entrepreneur; Entrepreneurship; Wage
Employment; Self Employment;
6. Identify the facilities and opportunities for self employment;
7. Explain clearly the business terrain in Nigeria;
8. Evaluate the role of entrepreneurship in wealth creation.
CONTENT
1. Meaning of Enterprise
Wider Context: An idea that is translated into a planned and
implemented activity
Narrower Context: Business venture or undertaking that

brings profit
In its wider sense, an enterprise is any identified idea that is

translated into a planned and satisfactorily implemented
activity. In its narrower sense, it refers to a business venture
or undertaking. Practically all projects and undertakings can
be referred to as enterprise if the following steps are followed:
 idea identification,

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 planning,
 implementation,
 successful completion of an activity, and
 accepting the reward.
2. Different forms of Enterprises
Private vs Public
Profit vs Non-profit
Formal vs Informal
Individual vs Community
Local vs Foreign
Business vs Social
Small vs Large
Manufacturing vs Service
Consumer Vs Industrial
People in a community have many interests and different

needs and wants in their lives. It is the role of enterprising
men and women to identify these interests, needs and wants
and establish specific enterprises through which these
interests, needs and wants can be satisfied. All enterprises
provide satisfying rewards for those who successfully
establish them.
Terms used to classify enterprises include private, public,
formal, informal, individual, community, local, foreign, small,
large, business, social, manufacturing, and service, consumer
or industrial. Enterprises that succeed, irrespective of their
nature, come up with irresistible and valued approaches that
contribute to providing solutions to problems, as well as
satisfying the desired needs and wants. The key difference
between all types of enterprise lies in the rewards they
provide. Business ventures provide profits as rewards, while
non-business ventures provide other types of rewards which
could be either physical or psychological. Enterprising men
and women will therefore engage in enterprises depending on
what kind of rewards they expect from them.
Specific enterprises in a community have the potential to
benefit from the existence of all the others. Output from one
enterprise normally becomes input for other enterprises, and

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this helps in money circulation among the enterprises and

within the community. The more money that circulates in the
community, the more prosperous the community becomes.
The synergistic nature of all enterprises in a community
creates an environment where there are lots of opportunities
to be exploited by enterprising men and women. It is
therefore up to these men and women to identify the
opportunities available and exploit them. Almost all
communities have lots of unexploited opportunities that can
increase this synergy if properly harnessed, to create even
more opportunities for everyone.
3. Features of the Types of Enterprises
4. Classification of Enterprises
 Sectoral: Enterprises are classified along the type of

products produced. There is an international code that
helps you with this classification. It is called the ISIC code
(International Standard Industries code). Below is an
example of some enterprises simply classified to reflect
some of what you may see in your neighbourhood.
Students are encouraged to look around and classify more
enterprises.

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Retail Food and Manufacturing Services Other

Recreation
Newspaper Grocery Machine shop Computer Distributorship
stand store Manufacturer' services Auctioneer
Clothing Restaurant s Print shop Wholesaling
store Convenienc representative Landscaping Farming
Fashion e store Medical Rental service Artist
boutique Bar/cocktail equipment Interior Building
Bicycle shop lounge Food decorating contractor
Antique shop Motel processing/ Warehousing Brokerage
Camera shop Fashion home and storage Transportation
Art and craft products Auto repair Design work
gallery Industrial shop Property
Drugstore equipment/ Accounting
Gift shop components and tax
Liquor store Cosmetic and service
Florist beauty Business
Pet shop products franchise
Auto services
dealership Car wash
Employment
agency
Travel/Tours
agency
Real estate
agency
Cyber café
Banking/Forex
Bureaux
Security
 Size: The size of the enterprise may also be used for its
classification. Worldwide this type of classification depends
on either of or both of the capital employed or the number
of staff engaged by the enterprise. Below is the definition
adopted by the Federal Republic of Nigeria.
Micro/Cottage industries are defined as those whose total

investment does not exceed one million and five hundred
thousand naira (=N=1,500,000.00) including working capital
but exclusive of land. The workforce is not more than 10.

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Small scale industries are defined as those with total

investment of between one million and five hundred thousand
naira (=N=1,500,000.00) and fifty million naira
(=N=50,000,000.00) excluding land, but including working
capital; and/or a workforce of between 11 and 100 workers.
Medium scale industries are defined as those with a total

investment of between fifty million naira (=N=50,000,000.00)
and two hundred million naira (=N=200,000,000.00)
excluding land, but including working capital; and/or labour
force of between 101 and 300 workers.
Large scale industries are defined as those with a total

investment of over two hundred million naira
(=N=200,000,000.00) excluding land but including working
capital; and/or labour force of over 300 workers.
Exercise: Classify the following enterprises, fill in an example of a

specific enterprise you are aware of and identify whether it
is of business or non-business type.
SPECIFIC BUSINESS OR
ENTERPRISE TITLE CLASSIFICATION
EXAMPLE NON-BUSINESS
1. Church
2. Electronics
Company
3. Farm
4. Information
Technology
Company
5. Children's Home
6. Private Hospital/
School
7. Construction Firm
8. Professional Firm

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9. Spare Parts Store
10. Motor Vehicle

Service
11. Supermarket
12. Banking/Forex
Bureau
13. Cyber Café
14. Publishing Firm
15. Travel Agency
5. More Definitions
 Entrepreneurship/Entrepreneur
Entrepreneurship is first and foremost a mindset. Entrepreneur
is a person who habitually creates and innovates to build
something of recognized value around perceived opportunities.
In this definition, all words are key words:
 'Entrepreneur' - can be an individual entrepreneur, but also
an entrepreneurial team or even entrepreneurial
organization
 'A person' - emphasizes a personality rather than a system
 'Habitually' - just cannot stop being an entrepreneur
 'Creates' - starts from scratch and brings into being
something that was not there before
 'Innovates' - able to overcome obstacles that would stop
most people; turns problems into opportunities; and sees
ideas through to final application
 'Builds something' - describes the output of the creation
and innovation process
 'Of recognized value' - encompasses economic,
commercial, social, or aesthetic value
'Perceived opportunities' - spotting the opportunity to

exploit an idea that may or may not be original to the
entrepreneur; seeing something others miss or only see in
retrospect

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What Entrepreneurs Are Like

1. Personality factors
o born/made ratio - 50/50, a synergy of genetic and
environmental influence
o motivation and emotion - independence, competitive
spirit, challenge, wealth
o behavioral characteristics - perseverance, determination,
orientation to clear goals, need to achieve, opportunity
orientation, creativity, persistent problem-solving, risk-
taking, integrity, honesty, internal locus on control
o personality attributes - preferred styles:
extrovert/introvert; sensor/intuit; thinker/feeler; and
judger/perceiver
2. Environmental factors
o family background - entrepreneurial heritage
o age and education - begin entrepreneurial activity early;
are not over-educated
o work experience - most entrepreneurs first gain some work
experience in the line of business they later start up
3. Action factors
o making the difference - initiate change and enjoy it
o creating and innovating - a continuous activity, seeing
creative idea through to the end, and then start climbing
another mountain
o exploiting opportunities - able to see or create
opportunities that other people miss
o finding resources and competencies - experts at exploiting
contacts and sources
o networking - expertise oriented; know when they need
experts and how to use them effectively
o facing adversity - resolve problems under pressure; turn
problems into opportunities
o managing risk - not adventurers, but manageable risk
takers; their success lies in caution, learning, flexibility and
change during implementation
o controlling the business - paying attention to details and
essential ratios; exercising strategic control over their
business
o putting the customer first - listening to the customer and
responding to the customers' feedback
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o creating capital - financial, social, and aesthetic
 Wage Employment
 Self Employment
6. ADVANTAGES AND CONSTRAINTS OF SELF-

EMPLOYMENT
1. ADVANTAGES OF WORKING FOR YOURSELF
Those who choose self-employment as a career usually do so for five
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basic reasons: personal satisfaction, independence, profits, job security

and status.
a. Personal satisfaction: To some people, the chief reward of working
for yourself is personal satisfaction. Personal satisfaction means
doing what you want with your life. Being self-employed will
enable you to spend each work day in a job you enjoy. For
example, if you like photography, you may start your own studio.
Each time a customer is pleased with a portrait, you will receive
personal satisfaction.
You may receive satisfaction from aiding the community in which
you live. Self-employed persons supply goods and services and
create jobs for others. They also buy goods and services from
other local enterprises, borrow money from local banks, and pay
taxes.
b. Independence: Another advantage of being a self-employed
person is independence. Independence is freedom from control of
others. You are able to use your knowledge, skills and abilities as
you see fit. When you are self-employed you are driven by spirit of
self-reliance and individual survival. Compared to those who work
for others, self-employed persons have more freedom of action.
They are in charge and can make decisions without first having to
get the approval of someone else.
c. Profit and income: One of the major rewards expected when

starting a new business is profit. Profit is the amount of income left
after all expenses have been paid. Profits go to the owner of a
business. Being self-employed, you would be able to control your
income. Very often, increased time and effort put into the
enterprise results in increased income. This is not often the case
when you work for someone else. How much do you want to earn
each year after your business is running smoothly? Do you want to
make 2,000, 5,000, 10,000 or more a year? It’s important to
decide on income because different types of businesses have
different income potentials. A fast-food restaurant has one income
potential while a small manufacturing business may have quite
another. It’s probably tempting to set your goal at a very high level
– say 15,000 a year. Many businesses have the long-run potential
of being successful; however, many businesses don’t become
profitable operations very quickly. One way to establish a personal
income goal is to answer the question “How much do I want to be
making (per year) six years from now?”
d. Job security: Many enterprises are created by persons who are

seeking the kind of job security that is not available elsewhere. Job
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security is the assurance of continued employment and income.

Self-employed persons cannot be laid off, fired, or forced to retire
at a certain age.
e. Status: Status is a term used to describe a person’s social rank or

position. Self-employed persons receive attention and recognition
through customer contact and public exposure. As a result, they
may enjoy status above that of many other types of workers.
Closely related to social status is pride in ownership; most people
enjoy seeing their names on buildings, vehicles, stationery and
advertisements. To some degree, all people seek status.
Businesses have their status too. There are high-status businesses
and low-status businesses. For example, garbage collection is a
low-status business. Some people are very interested in the status
of their business and others are not interested at all. It may be an
important consideration in selecting the type of business for you.
The key is to choose a business that has a status that you’ll feel
comfortable with.
f. Flexibility: Individuals who become self-employed have options to

start enterprises in all categories and sizes depending on their
capabilities. Self-employment also gives the individual the job of
being an employer and a leader rather than an employee and a
follower.
2. CONSTRAINTS OF WORKING FOR YOURSELF

In addition to knowing the advantages of self-employment, you should
also be familiar with the disadvantages: possible loss of invested
capital, uncertain or low income, long hours and routine chores.
a. Possible loss of invested capital: One risk of being self-employed is
the possibility of losing your invested capital. The term invested
capital refers to the money the entrepreneur put into starting the
enterprise. As a general rule, the riskier the business, the greater
the profit potential. If the enterprise succeeds, profits may be high.
If the business fails, invested capital may be lost; the entrepreneur
stands to lose a lifetime of personal and family savings. It may
take years to repay banks, suppliers and individuals who loaned
the money to get the business started.
b. Uncertain or low income: Another disadvantage of owning your

business is the possibility of uncertain or low income. Unlike the
salaries of employed workers, profits usually vary from one month
to another. This is true even in well-established businesses. When
income is available, there still may not be enough to meet
personal and family needs. This is often the case during the first
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six to twelve months of operation.
c. Long business hours: Entrepreneurs do not work just forty hours a

week; they do not punch time clocks. Many self-employed persons
work fourteen or more hours a day, six or seven days a week. The
owner is often the first to arrive at the business in the morning and
the last to leave at night. Business hours are set at the
convenience of customers, not the desire of the owner. For
example, many market shops are open from 8:00 a.m. to 9:00
p.m. Some entrepreneurs feel they cannot leave their businesses
for more than one or two days at a time.
d. Routine chores: Running your own business may involve routine

chores you do not like to do. You also need to be a jack of all
trades. This can sometimes be a challenge if you do not join with
others in a partnership or you cannot raise sufficient funds to allow
you to employ other people.
e. Risks: A risk is always a risk. However, you stand the best chance
of success if you are prepared to take calculated risks. Calculated
risks allow you to estimate the chances of failure or success
without taking a gamble. Very low risk ventures have less reward
in terms of profits and may lead to limiting your ideas and their
follow-up.
f. Time involvement: Starting a small business takes a lot of hard

work. In fact, it may consume most of your day in the first few
years. But in the long run, work effort and personal involvement
on the part of a small business owner can vary greatly. In many
established small businesses, day-to-day activities can be turned
over to a manager. Decide on the personal involvement and work
effort you would like to put into your business in the future (six
years from now). Quite conceivably, you’ll want to continue to be
fully involved, or maybe you’ll prefer to be only partially involved
or not involved at all.
g. People contact: How do you feel about working with people? Do

you really enjoy it, or do you wish you could always work alone? Or
are you somewhere in between? There are really three types of
people contact in a small business: contact with customers, with
employees, and with suppliers. Most small business owners don’t
mind the contact with employees and suppliers, since the owner is
usually on the most comfortable side of the relationship. The
owner-customer relationship, however, differs greatly depending
on the type of business you’re in. For example, in selling real
estate, personal aggressiveness is important. If you don’t enjoy
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personal selling, don’t choose a business where it’s required. Many

businesses have a much more impersonal sales approach. In most
retail operations, for example, successful selling depends more on
good merchandise, fair prices and advertising than it does on
personal contact with the customer. An extreme example of
impersonal selling is mail order, internet or e-mail, where you
never even see a customer (the customers send in orders and the
owner sends out the merchandise).
7. Business Terrain in Nigeria

The indispensability of the small-scale, private sector enterprise as the
dynamic engine needed for general economic development has been
recognized. Nigeria, taking the cue from other developing countries at
various times since the 1970s, has designed and introduced a variety
of measures to promote small and medium scale enterprise
development. Over the years these measures had included fiscal,
monetary and export incentives.
Fiscal incentives introduced included tax holidays and tariff

concessions. For instance, small enterprises were given a tax holiday
for the first six years of their operation.
Monetary Incentives: In terms of monetary authority support, the

Central Bank of Nigeria introduced credit guidelines requiring
commercial and merchant banks to allocate a portion of their loanable
funds to small enterprises.
Development Funds: A number of developmental financial institutions

and schemes were also established to aid the development of the
small and medium enterprises (SMEs) in the country. These included:
 The Nigeria Bank for Commerce and Industry (NCBI),
 Nigerian Industrial Development Bank (NIDB),
 Nigeria Agricultural and Cooperatives Bank (NACB),
 The “Peoples Bank” in the 1980s;
 The National Economic Reconstruction Fund (NERFUND), and
 The World Bank SME I and SME II loan schemes.
It is pertinent to note that NCBI, NIDB and NERFUND have been

merged to form The Bank of Industries (BOI); and the new National
Agriculture, Cooperative and Rural Development Bank (NACRDB) is a
merger of Peoples Bank, Family Economic Advancement Programme
and the Nigeria Agricultural and Cooperatives Bank (NACB).
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There were also export incentives from the Nigeria Export-Import Bank
(NEXIM) to stimulate export loan facilities to SMEs, and export duty
draw-back schemes administered by the Nigeria Export Promotion
Council (NEPC).
Other incentive programs were technical in nature, such as the

provision of manpower training, appropriate machinery selection and
installation, machine repairs and maintenance, and extension services.
These services were provided by institutions such as:
 The Industrial Development Centers (IDCs)
 The Center for Industrial Research and Development (CIRD),
 The Center for Management Development (CMD),
 The Project Development Agency (PRODA), and
 The Raw Materials Research and Development Council (RMRDC)
REGULATIONS AND YOUR BUSINESS
INTRODUCTION
You may not think that your small business can attract the attention of
any government or their agencies, but it does. For any business, even
the smallest, to grow and actually benefit from all the helps that are
offered by the government or its agencies, it would have to comply
with a number of its Local, State and Federal regulations. It is not in the
long-term interest of your business to ignore or avoid these
regulations. So you should take the time to work with your Business
Support Counselor to find out the applicable regulations for your type
of business.
Bear in mind that regulations vary by industry. If you are in the food
service business and you are located in the FCT, for example, you will
have to deal with the Abuja Environmental Protection Board, (AEPB).
For any location in Nigeria you will need the National Agency for Food
and Drug Administration and Control. (NAFDAC). If your business uses
chemical solvents, you will have AEPB’s compliance to meet. Carefully
investigate the regulations that affect your industry. Being out of
compliance could lead to expensive penalties, and thus jeopardize your
business.
Below are a number of the most common requirements that affect

small businesses, but it is by no means exhaustive.
 Business and Trading licenses
 Health and safety
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 Business Insurance
 Intellectual property protection
 Employment Taxes
 Employment law
Business Licenses
For almost every business that you would want to start you will need a
license to operate legally. For more information on licenses that you
might require contact the closest Business Development Service
Counselor.
You should allow enough time for the authorities to process your
application, because you may not be able to start your business until
the licenses you need are approved.
The rules are different depending on the type of business that you are
setting up. These are examples of the sort of licenses you might need,
and where to apply for them:
 Food businesses (such as restaurants, catering services snack bars

etc.) need a license from the NAFDAC.
 Businesses dealing with children, such as nurseries or daycare

centres, need a special license which is renewed annually, (Boards
of Education).
 Land related businesses you will need a valid land title like a
Certificate of Occupancy.
What business insurance do you need?
All businesses need insurance as soon as they start trading. Some

insurance policies are required by law, and you need them to be in
place as soon as your business is up and running.
Like home insurance, business insurance protects the contents of your

business against fire, theft and other losses. It is, therefore in your
business interest to purchase a number of basic types of insurance. It
makes good business sense to have most of these insurances, but
remember some of the coverages are required by law.
You are likely to need a combination of the following insurance policies:
 Liability Insurance -- Businesses may incur various forms of liability

in conducting their normal activities. One of the most common
types is product liability, which may be incurred when a customer
suffers harm from using your product.
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 Property Insurance -- There are many different types of property

insurance and levels of coverage available. It is important to
determine the property you need to insure for your business and the
level of insurance you need to replace or rebuild. You must also
understand the terms of the insurance, including any limitations or
waivers of coverage.
 Motor insurance -- It is good business practice that a vehicle owned

or used by your business should be insured for both liability and
replacement purposes, even if this is not demanded by law.
 Other types of insurance may be required, depending on the type of

business you run. For example: Buildings and contents insurance
(including cover for goods in transit); Professional indemnity
insurance, if you provide advice for a fee in the way that a solicitor
or consultant does, you might need this.
An insurance broker will be able to explain which policies your business

needs.
Tax Information –(FIRS)
Business owners are required by law to withhold Personal Income Tax

from the wages paid to their employees. In addition, each business
must file an income tax return on its business activities as well as
Value Added Tax (VAT) with the Federal Inland Revenue Service.
Sales Tax/Value Added Tax (VAT)
Within the Federal Republic of Nigeria, there is a percentage of (sales) -

value added tax, (VAT) which applies to all retail purchase, rental, use
or consumption of tangible personal property and certain services. In
other words, VAT must be collected on most tangible items sold.
Employee & Safety Regulations
(Check with Min. of Labour & Productivity or Min. of Industries for the
latest details.)
When your business employs people, even if they are your relatives, it
has to comply with a number of legal requirements. Employment law
covers many different issues, including:
 Working hours and holidays
 Minimum wage
 Pensions
 Tax and National Insurance
 Maternity and parental leave
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There are also special safety regulations for certain types of businesses
doing one or more of the following things:
 Working in a factory or workshop
 Using heavy machinery
 Using hazardous substances (like chemicals or pesticides)
 Doing a lot of lifting and carrying
Fire safety
If you employ staff, you have certain responsibilities when considering
fire safety in your workplace. These include:
 Doing a risk assessment of possible fire hazards and taking steps to
reduce the risk.
 Making sure fires can be detected quickly, for example by installing
a smoke alarm.
 Providing fire-fighting equipment and making sure it's properly
maintained.
Some businesses also need to apply for fire and/or environmental

certificate. Seek clarification from the nearest Environmental Agency to
your location.
8. Roles of Entrepreneurs in Business/Wealth Creation
1. Promoters: Entrepreneurs are promoters because they can scan

the environment, identify opportunities, marshal
resources and implement the business idea.
2. Partners: Entrepreneurs solicit the participation of other

persons
in a business project because of the following:
(a) the degree of success or failure factor involved,
(b) the complexity of a business idea may require
more than one person to run it,
(c) the influence, experience and capacity of others
may be useful, and
(d) friendships or acquaintanceships may be
consolidated through joint business association.
3. Shareholders: Potential entrepreneurs would participate as

shareholders under the following circumstances:
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(a) when the enterprise requires too much

investment,
(b) when they do not want to commit their full time
to
the enterprise,
(c) when risks may be reduced by spreading their
investment portfolio, and
(d) when they do not have the capacity to manage
such an enterprise.
4. Directors: Entrepreneurs participate as directors by contributing

positive ideas to advance the enterprise’s objectives.
Such would include:
(a) ensuring compliance with all legal requirements,
(b) safeguarding the interests of employees,
especially
women, particularly in the context of decent work,
(c) safeguarding the interests of shareholders in the
context of return on investment,
(d) ensuring that business is conducted honestly and
diligently, and is devoid of fraud and deceit,
(e) ensuring social responsibilities and expectations
are met.
5. Organizers: For an entrepreneur to effectively control or monitor

operations and facilitate communication with
workers, it is advisable to have an organizational
structure for the enterprise. Organizational structures
can be formal or informal, for instance:
(a) various members of a family are assigned various
positions,
(b) various employed assistants are assigned
administrative positions in the running of a small
business.
6. Initiating ideas: Entrepreneurs come up with new ideas. This is an

important area for an entrepreneur as it determines
his/her rate of expansion in business, e.g. new
designs
and use of products.
7. Taking risks: Entrepreneurs take risks in business, e.g. starting

businesses which have an equal chance of success or
failure. Resigning from a secure job to start a
business
is also risk-taking.
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8. Planning: Entrepreneurs are aware of the importance of

planning
and of the limitations of planning in the context of
the
above roles.
9. Controlling: Entrepreneurs are leaders rather than followers; they

make the final decisions and control all aspects of
business operations.
10. Coordinating: Entrepreneurs must coordinate all the production

factors needed in the business, i.e. capital, labour
and
land.
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TOPIC 2.
UNDERSTAND THE HISTORY AND GOVERNMENT POLICY MEASURES FOR PROMOTING

ENTREPRENEURSHIP IN NIGERIA
INTRODUCTION:
It is important to state the historical background of entrepreneurship in
the country with emphasis to how it started and developed to its
present level. This topic also highlights the contribution of
entrepreneurship vis-à-vis the promotion of the country’s economic
position. A practical outcome is that students should learn to obtain
any required information from the net

1. Trace the evolution of entrepreneurship development;
2. Explain the role of entrepreneur in developing enterprises in
Nigeria;
3. Compare Entrepreneurship in Nigeria with Japan, India, China,
Malaysia, South Korea, etc.
enterprises.
6. Explain Government policy measures at promoting
entrepreneurship in Nigeria
CONTENT:
1. Trace the evolution of entrepreneurship development ;
Throughout the theoretical history of entrepreneurship, scholars from

multiple disciplines in the social sciences have grappled with a diverse
set of interpretations and definitions to conceptualize this abstract
idea. Over time, "some writers have identified entrepreneurship with
the function of uncertainty-bearing, others with the coordination of
productive resources, others with the introduction of innovation, and
still others with the provision of capital" (Hoselitz, 1952). Even though
certain themes continually resurface throughout the history of
entrepreneurship theory, presently there is no single definition of
entrepreneurship that is accepted by all economists or that is
applicable in every economy.
Although there is only limited consensus about the defining

characteristics of entrepreneurship, the concept is almost as old as the
formal discipline of economics itself. The term "entrepreneur" was first
introduced by the early 18th century French economist Richard
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Cantillon. In his writings, he formally defines the entrepreneur as the

"agent who buys means of production at certain prices in order to
combine them" into a new product (Schumpeter, 1951). Shortly
thereafter, the French economist J.B. Say added to Cantillon's definition
by including the idea that entrepreneurs had to be leaders. Say claims
that an entrepreneur is one who brings other people together in order
to build a single productive organism (Schumpeter, 1951).
Over the next century, British economists such as Adam Smith, David
Ricardo, and John Stuart Mill briefly touched on the concept of
entrepreneurship, though they referred to it under the broad English
term of "business management." Whereas the writings of Smith and
Ricardo suggest that they likely undervalued the importance of
entrepreneurship, Mill goes out of his way to stress the significance of
entrepreneurship for economic growth. In his writings, Mill claims that
entrepreneurship requires "no ordinary skill," and he laments the fact
that there is no good English equivalent word to encompass the
specific meaning of the French term entrepreneur (Schumpeter, 1951).
The necessity of entrepreneurship for production was first formally

recognized by Alfred Marshall in 1890. In his famous treatise Principles
of Economics, Marshall asserts that there are four factors of
production: land, labor, capital, and organization. Organization is the
coordinating factor, which brings the other factors together, and
Marshall believed that entrepreneurship is the driving element behind
organization. By creatively organizing, entrepreneurs create new
commodities or improve "the plan of producing an old commodity"
(Marshall, 1994). In order to do this, Marshall believed that
entrepreneurs must have a thorough understanding about their
industries, and they must be natural leaders. Additionally, Marshall's
entrepreneurs must have the ability to foresee changes in supply and
demand and be willing to act on such risky forecasts in the absence of
complete information (Marshall, 1994).
Like Mill, Marshall suggests that the skills associated with

entrepreneurship are rare and limited in supply. He claims that the
abilities of the entrepreneur are "so great and so numerous that very
few people can exhibit them all in a very high degree" (1994).
Marshall, however, implies that people can be taught to acquire the
abilities that are necessary to be an entrepreneur. Unfortunately, the
opportunities for entrepreneurs are often limited by the economic
environment which surrounds them. Additionally, although
entrepreneurs share some common abilities, all entrepreneurs are
different, and their successes depend on the economic situations in
which they attempt their endeavours (Marshall, 1994).
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Since the time of Marshall, the concept of entrepreneurship has

continued to undergo theoretical evolution. For example, whereas
Marshall believed entrepreneurship was simply the driving force behind
organization, many economists today, but certainly not all, believe that
entrepreneurship is by itself the fourth factor of production that
coordinates the other three (Arnold, 1996). Unfortunately, although
many economists agree that entrepreneurship is necessary for
economic growth, they continue to debate over the actual role that
entrepreneurs play in generating economic growth. One school of
thought on entrepreneurship suggests that the role of the entrepreneur
is that of a risk-bearer in the face of uncertainty and imperfect
information. Knight claims that an entrepreneur will be willing to bear
the risk of a new venture if he believes that there is a significant
chance for profit (Swoboda, 1983). Although many current theories on
entrepreneurship agree that there is an inherent component of risk, the
risk-bearer theory alone cannot explain why some individuals become
entrepreneurs while others do not. For example, following from Knight,
Mises claims any person who bears the risk of losses or any type of
uncertainty could be called an entrepreneur under this narrow-
definition of the entrepreneur as the risk-bearer (Swoboda, 1983).
Thus, in order to build a development model of entrepreneurship it is
necessary to look at some of the other characteristics that help explain
why some people are entrepreneurs; risk may be a factor, but it is not
the only one.
Another modern school of thought claims that the role of the

entrepreneur is that of an innovator; however, the definition of
innovation is still widely debatable. Kirzner suggests that the process
of innovation is actually that of spontaneous "undeliberate learning"
(Kirzner, 1985, 10). Thus, the necessary characteristic of the
entrepreneur is alertness, and no intrinsic skills-other than that of
recognizing opportunities-are necessary. Other economists in the
innovation school side more with Mill and Marshall than with Kirzner;
they claim that entrepreneurs have special skills that enable them to
participate in the process of innovation. Along this line, Leibenstein
claims that the dominant, necessary characteristic of entrepreneurs is
that they are gap-fillers: they have the ability to perceive where the
market fails and to develop new goods or processes that the market
demands but which are not currently being supplied. Thus, Leibenstein
posits that entrepreneurs have the special ability to connect different
markets and make up for market failures and deficiencies. Additionally,
drawing from the early theories of Say and Cantillon, Leibenstein
suggests that entrepreneurs have the ability to combine various inputs
into new innovations in order to satisfy unfulfilled market demand
(Leibenstein, 1995).
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Although many economists accept the idea that entrepreneurs are

innovators, it can be difficult to apply this theory of entrepreneurship
to less developed countries (LDCs). Often in LDCs, entrepreneurs are
not truly innovators in the traditional sense of the word. For example,
entrepreneurs in LDCs rarely produce brand new products; rather, they
imitate the products and production processes that have been
invented elsewhere in the world (typically in developed countries). This
process, which occurs in developed countries as well, is called
"creative imitation" (Drucker, 1985) The term appears initially
paradoxical; however, it is quite descriptive of the process of
innovation that actually occurs in LDCs. Creative imitation takes place
when the imitators better understand how an innovation can be
applied, used, or sold in their particular market niche (namely their
own countries) than do the people who actually created or discovered
the original innovation. Thus, the innovation process in LDCs is often
that of imitating and adapting, instead of the traditional notion of new
product or process discovery and development.
As the above discussion demonstrates, throughout the evolution of

entrepreneurship theory, different scholars have posited different
characteristics that they believe are common among most
entrepreneurs. By combining the above disparate theories, a
generalized set of entrepreneurship qualities can be developed. In
general, entrepreneurs are risk-bearers, coordinators and organizers,
gap-fillers, leaders, and innovators or creative imitators. Although this
list of characteristics is by no means fully comprehensive, it can help
explain why some people become entrepreneurs while others do not.
Thus, by encouraging these qualities and abilities, governments can
theoretically alter their country's supply of domestic entrepreneurship.
2. Explain the role of entrepreneur in developing enterprises in

Nigeria;
In Nigeria like in all countries, entrepreneurs drive business and

socio-economic development. They play the key roles that
sustain national socio-economic development. These important
roles are described below.
a) The entrepreneur is the prime mover in the business

enterprise. Without the entrepreneur there would be no business
in the first place. He/she is the one who identifies gaps in the
market and then turns these gaps into business opportunities. One
of the functions of the entrepreneur is, therefore, to initiate the
business.
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b) It is the entrepreneur who finances the business. After

identifying a business opportunity, the entrepreneur raises and
mobilizes the necessary resources to exploit the opportunity. By so
doing the entrepreneur becomes the financier of the enterprise.
The entrepreneur does not of course have to finance the business
from personal savings alone. The necessary finances and other
resources could be borrowed. It is therefore a function of the
entrepreneur to finance the business.
c) Another function of the entrepreneur is to manage the

business. This is also a function that he/she can easily delegate to
other people. But, even where other people are employed to
manage the business, the ultimate responsibility for management
remains with the entrepreneur. Management functions involve a
wide range of activities such as organizing, coordinating, leading,
recruiting, rewarding, evaluating, etc. The entrepreneur does not
only manage production, but also marketing, personnel and all
other aspects of the business.
d) The entrepreneur also has the function of bearing the

uncertainties of the risks of the business. This arises because it is
the entrepreneur who provides the finances of the business. This
is so even where other people may have lent the necessary
finances, as is the case when one borrows from financial
institutions.
e) Through the entrepreneurial function, many jobs are

created in the economy. In addition, wealth is made available to
the individual, the community and society in general through the
actions of entrepreneurs. Entrepreneurs also encourage
competition, which is critical in sustaining free enterprise, and
support a market economy system which has proved to be ideal
for economic growth, social progress and the spread of prosperity
among a country’s population. Entrepreneurship is an effective
mechanism for ensuring innovation and creativity as well as
achieving development at the grassroots level.
3. Compare Entrepreneurship in Nigeria with Japan, India, China,

Malaysia, South Korea, etc.
Entrepreneurship in Nigeria
Africa is the poorest, less-developed continent in the world. In most

countries in Africa, the governments have typically played a significant
role in determining the course of development. Many state-owned
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enterprises in Africa were created when it was believed that the fastest
route to development occurred when the state took on the role of the
entrepreneur. Unfortunately, in many countries, the performance of
these state-owned firms, or parastatals, has been substandard. Part of
the problem with the state-owned enterprises is that they are run by
bureaucrats and are plagued with red-tapism. Thus, these firms are
typically run according to state procedures, instead of according to
cost-cutting and profit-maximizing concerns. The typical result is
rampant inefficiency (Elkan, 1988). Although Nigeria was at one time
characterized by such inefficiencies, it has recently pursued
entrepreneurship encouragement policies, and the initial indicators
suggest that the policies have been successful.
In Nigeria the state-owned enterprises traditionally clogged business

opportunities and state restrictions prevented entrepreneurs from
entering the market. However, in the mid-1980s, Nigeria abolished its
marketing board, which prevented entry into certain industries, and
opened up its markets to competition from domestic entrepreneurs.
Additionally, lower taxes and increased price ceilings have increased
the incentives to entrepreneurs. Although Nigeria is still plagued by
many development problems, "preliminary evidence suggests a
favorable response by the private sector to the new entrepreneurial
opportunities thus created" (Elkan, 1988).
Nigeria has thousands of silent businessmen in the informal sectors of

the economy, pursuing business interests ranging from the importation
of refined crude oil to selling repackaged table water. It is estimated
that the informal sector accounts for over 60% of Nigeria’s GDP and
represents a source of livelihood for about 70% of Nigerians. These
business operators in the small sectors are the engine that drives any
economic revolution, and Nigeria has no scarcity of them. However,
some of these Nigerians have become icons and models for enterprise
and business pursuit today through the sheer size and influence of
their business dealings. They are from the banking, energy,
technology, telecommunications, manufacturing and other industrial
sectors and have distinguished themselves by contextualizing the
resources they manage and by contributing to growth of
entrepreneurial spirit in Nigeria.
Nigeria’s business opportunities have increased tremendously as the

political system becomes increasingly stable. The era of private sector-
driven investment has just arrived. The Nigerian Presidency has set an
ambitious goal:- to develop the country’s economy to become one of
the world's top 20 economies by 2020. Nigeria will need to increasingly
globalize education in two key areas: Information and communications
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technology, and entrepreneurship. The Presidency has mandated all

students in Higher Education Institutions (HEIs), regardless of their
discipline, to study entrepreneurship before they qualify for their
degrees and diplomas. The aim of this is to create a critical mass of
graduates better prepared for employment as well as creators of
knowledge-based enterprises.
The Challenges Faced By Entrepreneurs in Nigeria
Corruption is something that retards economic growth, and it exists in

virtually all economies, not necessarily developing economies or
indeed Africa--although based on the structures in the more advanced
countries, they are able to control or to curb these kinds of practices.
In Nigeria, the EFCC, which is the Economic and Financial Crime
Commission set up by the government, has been able to deal largely
with corruption. They have made quite a substantial amount of
investigation and recoveries. There has been talk of something like $5
billion recovered including some of the money stacked outside of the
country by corrupt leaders. The current operating climate for
entrepreneurs is gradually becoming competitive and less rent-
seeking.
However, that is not the real constraint that retards entrepreneurship

in Nigeria. Based on the research carried out by Lagos Business School
(LBS) recently, the following factors tend to weigh down entrepreneurs:
The first is "Markets." The majority of our people don't have access to
markets, and in order for them to have access to markets, they have to
understand the requirements of the market. This is one area where we
are lacking--for instance, if you want to have access to the U.S. market,
you must have the knowledge of the market regulations in the USA.
Such understanding will assist the entrepreneur to produce in order to
be able to meet the needs of the market. Adequate and timely market
information must be provided. Also, products must be competitive and
meet required standards.
Another major factor is "Infrastructure." This is basically [true] in all

developing countries, but more so in Nigeria. Poor infrastructure has
been a major cause of Nigerian products not being competitive in the
International market. Public power supply has been the major
constraint to enterprise development. According to a study carried out
by the World Bank in the last 10 years or so, it was pointed out that if
government is able to remove power as a bottleneck, Nigeria will gain
at least 30% competitiveness in production.
Four years ago, we had a similar problem in telecoms; then, we had

not more than 400,000 phone lines. But today, four years after
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telecoms deregulation the story is different. This reform agenda of the

government that liberalized the telecoms sector and provided an
enabling operating climate for private sector participation in that
sector has yielded positive results. About 50 million lines, the majority
of which are either mobiles or fixed wireless are now operational in the
country. So we are able to cross the bridge of infrastructural deficiency
in the telecoms sector through getting our policy and regulations right
as well as using transparent means to license private sector operators.
Another important constraint is "Finance." Access to capital is a major

constraint in Nigeria. The government has tried to do something about
this through having one form of intervention or the other in the past.
However, about five years ago, the Banker's Committee decided to set
aside 10% of their profits as equity investments in small businesses.
Everybody hailed that decision, and that was good. Unfortunately, the
rate at which the money was being dispersed to enterprises has been
very poor. So why was this happening?
First of all, you have to understand the mindset of the small business
owners in Nigeria. They own their businesses, and they like to control it
themselves. Unlike what obtains in USA, Canada and Europe where
most people wanting to start a business will look for a partner,
somebody with equity. The philosophy is "Let's share the risk together.
Let's leverage on the knowledge of one another," and things like that.
But back in Nigeria, the prevailing philosophy is "I want to start it
myself. I want to do it myself, at least up until the particular level that I
know I have full control. Then, maybe I can sell part of it, but for now,
let me do all the sweating, and let me do all the things that come with
that sweating."
The second side is that up until five, maybe not more than eight, years
ago, the financial services sector had been used to lending through
debt, not equity, so the mindset, again, is different. Most lending has to
be done with collateral, so if you default, they sell off your collateral. In
the new participatory case, there is nothing to sell off, which means
they have to do their homework a lot more to know the right type of
businesses to invest in--whether they are growing businesses or not.
They need to know all that, and that is where they can get their
reward. So that has also become a challenge for them. The challenge
for the banks is that they need to learn the ropes of venture capitalists.
On both sides, there are real challenges, and these have slowed down
the investments in equity. There is need for value orientation and
sound financial education.
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Another factor is inadequate documentation of processes and

outcomes. The records are poorly kept; and it is difficult for small
businesses to have regular financial statements and things like that.
This common business practice in developed economies must be
shown to entrepreneurs and why it is important for them to have their
own financial records--even to know how their businesses are growing.
Western small businesses are very careful about documenting
processes and outcomes. I think the outcomes documentation is likely
due to Small Business Administration (SBA) requirements, which we
don't have. But beyond the SBA requirements, the fact that
entrepreneurs are able to document their processes helps them to
consistently control the outcome. That is one learning point that must
be imbibed by all entrepreneurs. In addition we need to start
documenting some of the processes which have been successful as
well as documenting various operational challenges and the solutions
to these, using daily reflection journals. This leads to effective use of
feedback mechanisms in future operational plans as well as in
developing their own strategic plans.
Technopreneurship in South and South East Asia
Entrepreneurship in parts of South and South East Asia has recently

undergone rapid revitalization. The term "technopreneur" arose from
within Singaporean culture to describe an individual whose
entrepreneurial endeavours focus on a technology-centered enterprise.
The government of Singapore has embraced technopreneurship and
has launched several initiatives to promote technopreneurship as a
means of economic development. In the past three years, Singapore
has restructured the focus of many of its economic policies to fully
support the growth and development of domestic technopreneurial
firms.
Singapore is a small island city-state and has few natural resources

that it can exploit in order to promote economic development. Thus,
Singapore has had to largely rely on its people and human capital for
the sustainment of development. Initially, the government improved
the country's human capital by dedicating a large amount of the
annual budget to education expenditure. However, now that the
country can boast of high literacy rates, traditional human capital
development is no longer sufficient to sustain economic growth.
Recognizing the need for a new strategy for economic growth,

Singapore's government turned towards the technology sector. With
the creation of the Technopreneurship 21 Initiative and Ministerial
Committee, Singapore began promoting technopreneurship
encouragement policies. For example, the government now sponsors
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university courses on technopreneurship and helps connect venture

capital companies with budding technopreneurs. This greater openness
has encouraged many new start-ups to form, and the country is well on
its way to fully integrating itself into the New Economy. Singapore's
success with technopreneurship policies has influenced other Asian
countries to begin such initiatives. For example, Malaysia recently
launched its Multimedia Super Corridor to encourage domestic
technology development, and Hong Kong recently completed the
construction of its CyberPort, a technopreneurship-friendly business
district. Finally, technopreneurship encouragement has also taken
place in certain cities in India.
As a whole, India is still one of the most underdeveloped countries in

the world. Despite the grim situation that faces much of the country,
several technology-focused cities have recently had impressive
success with technology driven development. In 1991, the Indian
government introduced numerous market reforms to overhaul the
Indian economy. The information technology industry is probably that
which has benefited most from the reforms. For the educated urban
class, information technology businesses have provided a new source
of income. To utilize the educated youth, who have been trained in
engineering and computer programming, international IT companies
began locating in India, particularly in Bangalore. The result is that
Bangalore has become a powerhouse for software production. Although
Indian technopreneurs were not originally at the center of Bangalore's
technology development, they are now beginning to pop up throughout
southern India, largely due to the government's help in creating "the
right climate to encourage this sunrise industry" (Soota, 1998). The
government created policies to boost technopreneurial education and
to encourage the creation of domestic software parks. Additionally,
domestic entrepreneurship is encouraged in Bangalore with tax
incentives and a relatively advanced communications infrastructure
(Soota, 1998).
Bangalore's localized success is gaining great praise for its rapid

development. Although Bangalore was the first major technology
center in India, Hyderabad is now following its example. Although
smaller in scale, the success of Hyderabad suggests that the Bangalore
model of technology-led development may be applied in other parts of
the country. Since much of India is still far behind Bangalore and
Hyderabad in terms of human capital development, it is unreasonable
to suggest that all of India should adopt policies to promote
technopreneurship. Nonetheless, the rest of the country could likely
benefit from the implementation of policies that encourage
entrepreneurs to fill the market's deficiencies, whatever they may be in
the local markets and specific regions of India.
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The historical and contemporary records reveal a long and robust

history of family- owned businesses in Nigeria. There is evidence that
the colonial legal and administrative policies purposefully discouraged
Nigerians from owning a business and achieving economic
independence.
Despite de-facto and legal discrimination before independence,

Nigerians throughout the region have a track record in a full range of
commercial enterprises. They have distinguished themselves as
industrialists, skilled artisans, real estate developers, professionals,
bankers, merchants, and as players in every other conceivable area of
commercial enterprise. Moreover, there is a strong appetite, as well as
cultural and political mandate among Nigerians for enterprise
development. It is avidly embraced by and unifies - historically and
today -- all segments of the political spectrum. It is supported by
churches, nationalist groups, and political parties. Enterprise
development is considered the answer to not only personal wealth and
achievement, but also the larger historical political and social agenda
of National economic and community development.
Today, Nigerians are uniquely positioned for the New Millennium

business environment. A larger percentage of today's national
entrepreneurs hold advanced degrees, are computer savvy, and are
active in international and cross cultural networks; important assets in
the knowledge-based, networked economy. Businesses, financial
institutions (public and private) and business assistance providers need
the insights and tools to help retain, grow and expand Nigerian-owned
businesses. At stake are local and regional economic objectives:- The
provision of basic goods and services, job creation, neighborhood
improvement, wealth creation, among others. This requires addressing
some of the traditional barriers to enterprise development –
infrastructural weakness, access to capital and market opportunities
along with new millennium challenges --rapid demographic, economic,
and spatial changes.
Future government policies aimed at growing indigenous business

must address three specific questions:
• What role do Nigerian-owned businesses currently play in the
ECOWAS economy?
• How are Nigerian firms adapting to the rapidly changing
demographic, economic, and political milieu in the world market?
• What are the relevant strategies for positioning Nigerian enterprises
in the New Millennium?
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The government must encourage business associations or higher

education institutions to address these challenges by providing the
research findings and ideas for these new directions.

enterprises;
The supply of entrepreneurship is affected by many factors, not all of

which can easily be controlled or changed. Nonetheless, policymakers
can implement certain policies in order to encourage entrepreneurship.
Based on the characteristics of entrepreneurs and the factors that
affect the supply of entrepreneurship, the following policy prescriptions
may serve as a general guide for implementing policies that foster
economic development through increased levels of entrepreneurship
(the recommendations are in no particular order):
1. Increase the market incentives for entrepreneurs: As stated

earlier, one of the primary determinants of the supply of
entrepreneurship is the willingness of an individual to become an
entrepreneur. Willingness is largely determined by the
anticipated economic benefits that will accrue to an entrepreneur
if his enterprise is profitable. In many countries market
regulations limit the incentives that could encourage would-be
entrepreneurs to start their own enterprises. For example, price
ceilings that are set below market equilibrium lower the amount
of revenue that an entrepreneur could earn in a certain industry.
If the anticipated economics benefits are lower than the
opportunity cost, then the would-be entrepreneur will not start
his own enterprise. Thus, in many countries policies should be
implemented to increase and improve the incentives for
entrepreneurs. Additional policy possibilities include tax
incentives for entrepreneurs.
2. Improve the availability of credit and capital: The second major

determinant of the supply of entrepreneurship is opportunity. In
order for an individual to start his own enterprise, it is necessary
for him to have the credit or capital to finance the initial start-up
costs. One of the primary problems facing would-be
entrepreneurs in LDCs is a lack of such capital. Without initial
capital, many entrepreneurs do not have the funds to start
enterprises of their own. Governments could attempt to correct
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this problem by encouraging the development of venture capital

companies and by implementing micro-credit programmes. The
specific type of capital programmes that are implemented would
need to be crafted specifically for each country, depending on
where the country is along its course of development. In the
poorest of LDCs, the focus would most likely be on micro-credit
programmes, like the Grameen Bank in Bangladesh. However, in
countries with higher levels of human capital, entrepreneurial
firms would derive greater use from venture capital.
3. Develop entrepreneurship encouragement programmes: By

passing legislation that is friendly towards entrepreneurs,
countries can make it more culturally acceptable and less risky to
be an entrepreneur. Additionally, entrepreneurship
encouragement programmes, like the Technopreneurship 21
Initiative in Singapore5, can assist entrepreneurs in finding
capital, setting up a business plan, and complying with the
various business and tax regulations.
4. Initiate entrepreneurship educational programmes: New

education initiatives should be created to teach
entrepreneurship. By equipping more people with the skills to
become entrepreneurs, a country can effectively increase its
supply of competent entrepreneurs. Economists disagree as to
whether entrepreneurial skills can be taught or whether they are
intrinsic. Nonetheless, there have been successful results from
such educational programmes. One example of such a policy is
the Malaysian Entrepreneurship Development Centers in the
rural, indigenous areas of Malaysia. These centers teach the
indigenous people entrepreneurial skills and assist aspiring
entrepreneurs with the development of their business plans.
5. Reform market regulations to facilitate entry into the market:

Countries can increase their supply of entrepreneurship by
improving the ease of entry into the formal sector. Many LDCs
use licenses and permits to regulate who can participate in the
formal sector. Although these policies may earn government
revenue or protect state-owned enterprises, they effectively
make the markets inefficient (by limiting competition) and
prevent would-be entrepreneurs from starting their enterprises.
By reforming their market-entry laws, some countries will be able
to increase their supplies of entrepreneurs. As an example,
Nigeria's abolition of its marketing boards provided new opening
for a large number of small entrepreneurs to enter the market
with creative imitations.6
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6. Increase entrepreneurial opportunities available to women and

young persons: As Saeed suggests, many women and young
persons are excluded from the formal sector in LDCs because of
cultural values or legal restrictions. By preventing these groups
from participating in the formal market, these countries are
essentially limiting the size of their pool of would-be
entrepreneurs. By eliminating discriminatory employment and
licensing policies, countries could create an influx of possible
entrepreneurs. Unfortunately, such polices may not be culturally
popular in some countries (Saeed, 1998).
All of the above recommendations are general policy suggestions that

governments can pursue. The specific policies that a country
implements, however, must be made appropriate for the specific
circumstances that the country faces. For example, in a country where
the majority of entrepreneurship takes the form of small family-owned
enterprises, there is initially little need for venture capitalists; instead it
would be more appropriate for this country to implement micro-credit
programs to assist potential entrepreneurs. Thus, the policies that an
LDC implements to increase its supply of entrepreneurship must be
crafted individually for the country's specific case and stage of
development. Additionally, like most development policies, many of the
above recommendations require government expenditure. However,
since entrepreneurship is necessary for economic development,
expenditure on encouragement policies is as justified as much as
expenditure on any other development policy.
6. Explain Government Policy Measures at Promoting Industry and

Entrepreneurship in Nigeria.
In order to promote a dynamic, efficient and balanced manufacturing

sector, a package of incentives should be designed to promote
investment, employment, product mix and various other aspect of
industry.
In general, the package of incentives can be grouped into five; these

are:
i. Fiscal measures of taxation and interest rates.
ii. Effective protection with import tariff
iii. Export promotion of Nigerian products.
iv. Foreign currency facility for international trade.
v. Development Banking.
TAXATION
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Fiscal measure has been fashioned out to provide for deduction and
allowances in the determination of taxes payable by manufacturing
enterprises. The fiscal measures targeted at aspect of industrial
activities are as follows:
a) Pioneer Status
By the provision of income tax relief Act 1958 (Amended by Decree No.
22 of 1971) Public companies are granted specific tax holiday on
corporate income. This is to encourage such industries that
government consider beneficial to Nigeria. During the period of
exemption, the companies are expected to achieve a reasonable level
of profitability. The relevant company or product is declared a pioneer
industry or pioneer product. This Act is applicable to both public and
private limited liability companies.
The relief covers non renewable period of five years for pioneer
industry and seven years for such industries located in economically
disadvantaged areas.
Pioneer status relief as well as additional tax concessions is available

to industrialists who take initiative in the following areas:
i. Local raw material development
ii. Local value added activity
iii. Labour intensive processes
iv. Export oriented activities
v. In-plant training
vi. Investment in economically disadvantaged areas.
b) Tax Relief for Research and Development

Industrial establishments are expected to engage in research and
development (R & D) for the improvement of their processes and
products. Up to 120% of expenses on R&D are tax deductible provided
that such R&D activities are carried out in Nigeria and are connected
with the business from which income or profit is derived for the
purposes of R&D on local raw material 14% of expenses are allowed.
Where the research is long term, it will be regarded as a capital
expenditure and it will be written off against profit in administering this
tax relief the Federal ministry of finance consults the federal ministry
of science and Technology to determine the genuineness of such R&D
activities.
c) Companies Income Tax Act

This Act has been amended in order to encourage potential and
existing investors and entrepreneurs.
d) Tax Free Dividends
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An individual or a company deriving dividend from any company as

from 1987 shall enjoy tax free dividends for a period of three years if:
i. The company paying the dividend is incorporated in Nigeria
ii. The equity participation is imported into the country.
iii. The recipient’s equity in the company constitutes at least,
10% of the share capital of the company.
In addition to the above, if the company paying the dividends is
engaged in Agricultural production in Nigeria or the production of
petrochemicals or liquefied natural gas, the tax free period shall be five
years.
e) Tax Relief for Investments for Economically Disadvantaged Local

Governmental Areas
Enterprises who invest in economically disadvantaged local
government areas are entitled to special income and other
concessions.
These include:
i. Seven years income tax concession under the pioneer status
ii. Special concession by relevant state government.
iii. Additional 5% and above the initial capital depreciation
allowance under the company income tax.
For the purpose of administering these incentives, the country has

been grouped into the following zones;
1. Industrially and economically developed local
government areas
2. Less industrially and economically developed local
government areas
3. Least industrially and economically developed local
government areas.
f) Double taxation (Income tax 1979)

By Decree No 41985 (miscellaneous taxation provision) the income
tax Act of 1979 was amended. The effect of the amendment was to
eliminate double taxation on investment income.
g) Group of company taxation.

Companies can now pay interim company dividends without any
double taxation since the amendment on franked investment income
came into effect on 1st January, 1985.
EFFECTIVE PROTECTION
Tariff level provides a simple and straight forward measure of
protection against imports but may not provide the total effect
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anticipated. Government therefore put in place other measures to

ensure that locally made goods are competitive in both domestic and
export market.
a) Pursuant of the trade liberalization policies of the government,

a new Customs, Excise Tariff etc decree was published. It makes
provisions for the imposition of ad valorem custom and excise
duties payable on goods imported and manufactures in Nigeria
basing it on a new harmonized system of custom tariff. The
essence of this review is to give effective protection to local
industries and to promote further investment.
b) Dumped and subsidized goods, the custom Duties dumped and

subsidized Goods Act of 1958 permit when necessary the
imposition of a special duty on any goods which are dumped in
Nigeria or subsidized by any government or authorized outside
Nigeria.
EXPORT PROMOTION
A variety of measures ranging from export insurance to outright grant
to export oriented industries are applicable to manufacturers producing
for export. These have been articulated in Decree No. 18 1986.
i. Import Duty Draw Back
Importers can claim repayment of import duty paid for
materials used in producing export goods. Repayment will
be made in full if materials are imported for use in the
production of goods which are exported. The objective of
the duty draw back is to encourage the production of
various export goods as a way of diversifying the economy
away from it.
ii. Export License waiver
No export license is required for the export of
manufactured or processed products. Also, export products
are exempted from excise tax
iii. Export Credit Guarantee and Insurance Scheme
In order to make Nigerian products compete effectively in
the international market as well as to insure genuine
exporter against some political and other risk including
default in payment, the government has approved the
establishment of an export credit guarantee and insurance
scheme.
iv. Export Development Fund.
This should be used to provide financial assistance to
private exporting companies to cover part of their initial
expenses in respect of export promotion activities.
v. Export Expansion Fund;
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This shall be used to provide cash inducement for

exporters who have exported a minimum of N50, 000
worth of semi manufactured or manufactured products.
vi. Export Adjustment Scheme Fund
This has been established to serve as a supplementary
export subsidy.
vii. Rediscounting Of Short Term Bill For Export
This facility will enable all exporters to rediscount their
short term bills under the scheme in the central bank of
Nigeria.
viii. Capital Allowance
Additional annual capital allowance of 5% on plant and
machinery is granted to manufacturing exporters provided
that the product has at least 40% local raw materials
content or 35% value added.
ix. Tax Relief on Interest Income

Company income tax Act has also been amended to grant
tax relief on interest accruing from any loans granted to
and investment in export oriented industries.
FOREIGN CURRENCY FACILITY

A new trade and exchange rate regime has been adopted by
government to ensure efficient and competitive local production. The
facility also provides for easier measurement of investible funds for
goods and services in and out of Nigeria.
i. Foreign Exchange Market
The foreign exchange market came into operation after
abrogating of import levy and export license. The market also
provides manufacturers easy access to foreign exchange.
ii. Repatriation of Imported Capital
An approved status permit for imported capital investment is
conferred on companies with non-resident investment cases
where the original investment was imported in the form of
equity either by way of cash or plant and machinery. The
purchase of this status is to facilitate timely repatriation of
remittance or other capital claims.
iii. Payment of Technology Fees
In order to ensure effective assimilation and diffusion of foreign
technology within a specific time frame at a fair and equitable
contractual and payment terms, fees for technical services are
based on net sales (rather than profit and tax).
iv. Foreign Currency Domiciliary Account
Banking regulation in Nigeria makes it possible for exporters of
non oil product to retain the proceeds of export in bank account
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denominated in foreign currency. Such accounts are operated at

the owner’s discretion.
DEVELOPMENT BANKING
Industrial development banks have been set up at both federal and
state levels to offer specialized services to industry. Paramount among
these services is the provision of soft loans and advances to large,
medium and small scale, and cottage type industries on concessionary
terms. These concessions are reviewed regularly in line with policy
objective of government. These banks include Bank of Industry (BOI)
and Nigeria Agricultural Cooperative and Rural Development Bank
(NACRDB).
TOPIC 3:
UNDERSTAND THE TYPES, CHARACTERISTICS AND

RATIONALE OF ENTREPRENEURSHIP
INTRODUCTION:
This section highlights a comprehensive typology and significance of
entrepreneurship. The real values, forms and attributes of
entrepreneurship are also discussed. Students should be able to
analyze life situations in which people may find themselves and
enumerate the benefits to be derived from the above situation.
SPECIFIC LEARNING OBJECTIVE:

1. Explain types of Entrepreneurs and their characteristics;
2. Explain the classes of entrepreneurship
3. Analyze life situations people may find themselves in;
4. Enumerate the benefits to be derived from the
above situation;
5. Compare and contrast Technological and Social
Entrepreneurship;
6. Identify the different types of Entrepreneurs:
self employed, Opportunistic, Inventors, Pattern multipliers,
etc.
7. Identify the role of Entrepreneurship in
business, society and in self employment.
CONTENT:
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1. "Entrepreneurship involves seeking and pursuing opportunity.

Successful entrepreneurship captures the value from
opportunity" - Colin Turner
Six Core Entrepreneurship Characteristics: essential to fulfill

both an organization's potential and the individual's potential.
Employee
1. Make decisive personal choice
2. Design, develop, drive and determine
3. Willingly risk moderate failure
4. Establish interdependence among members
5. Define project expectations
6. Recognize concept value
Organizational
1. Have agreed support strategy
2. Provide initiative sponsorship
3. Establish trial and error metrics
4. Encourage diversified teams
5. Allocate venture resources
6. Provide performance and risk rewards
No one gets ahead by copying the status quo or imitating

competitors. The concept of being unique or different is far more
important today than it was ten years ago. In the emerging era of
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over-communication and hyper-competition, people are overwhelmed

by choice - choice of information, ideas, products, and services. In this
sea of choice, most customers have trouble making choices about
buying decisions. Choosing among multiple options is always based
on differences, implicit or explicit.
Creativity is your key to the future. All progress comes about as a
result of finding better, faster, cheaper, easier or different ways to do
things and this requires the continual honing of your creative thinking
skills.
Lateral thinking is concerned with generation of new ideas. It is also
concerned with "breaking out of the concept of prisons of old ideas."
List entrepreneurial characteristics: the list might include the following

characteristics.
– Self confident – Persistent and determined
– Independent – Willing to listen
– Optimistic – Hard working
– Dynamic leader – Energetic and forceful
– Originality of thought – Perceptive
– Builds on strengths – Goal-oriented
– Innovative and creative – Risk-taker
– Resourceful – Accepts challenges
– Committed – Communicates effectively
– Takes initiative – Decision-maker
Sets own performance

– Versatile and knowledgeable –
standards
– Gets along with others – Sees broad picture
– Flexible – Mentally well-organized
– Responsive to feedback – Understands self
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– Achievement-oriented – Manages an organization
– Builds for the future – Reliable, has integrity
– Highly motivated – Copes with uncertainty
– Profit-oriented
2. 10 Secrets of Successful Entrepreneurs
Running a one-person business is a creative, flexible and challenging

way to become your own boss and chart your own future. It is about
creating a life, as it is about making a living. It takes courage,
determination and foresight to decide to become an entrepreneur.
From the relatively safe cocoon of the corporate world, where
paychecks arrive regularly, you will be venturing into the uncharted
territories of business.
Is there a way to determine whether you can be a successful

entrepreneur, or you are better off to work for somebody else? Alas,
there is no formula for success. However, most successful
entrepreneurs share these ten characteristics. Check if you possess
any one of them:
1. Think success. To attain the kind of success that you want, you need
to dream big. Every success story starts with big dreams. You need to
have big dreams for yourself - which you want to be somebody rich,
famous or fulfilled. You need to have a clear vision of what you want to
achieve. But it doesn't stop in dreaming alone. You should actively
visualize success in your mind that you can almost feel it, touch it or it
is within your reach. Play this image back at every opportunity. What
does it feel to triple your current income? How will your life change?
What will your business look like if you achieved the million-dollar
mark?
Successful entrepreneurs possess an attitude of openness and faith

that you can have what you want if you can simply envision it as the
first step on the path of action to acquiring it. Management gurus have
taught us the power of visualization - seeing yourself in your mind as
having accomplished your dreams. If you want to be a successful
writer, envision yourself signing books for a throng of people who have
lined up to have your autograph. If you want to be rich, picture yourself
in luxurious surroundings holding a fat bank account. And the process
of envisioning success for you should be a constant activity! You need
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to think that you are successful (or will be one) every single waking
hour. A personal development coach shared me her secret to help her
continuously visualize her goals for the moment: when climbing stairs,
recite your goal with every step you take. So if you want more money,
say "I will have money" in every step of the stairs. This technique will
reinforce your goal and keep it fresh in your consciousness.
2. Be passionate with what you do. You start a business to change any
or all part of your life. To attain this change, you need to develop or
uncover an intense, personal passion to change the way things are and
to live life to the fullest. Success comes easily if you love what you do.
Why? Because we are more relentless in our pursuit of goals about
things that we love. If you hate your job right now, do you think you
will ever be successful at it? Not in a million years! You may plod along,
even become competent at the tasks, but you will never be a great
success at it. You will achieve peak performance and do what you have
to do to succeed only if you are doing something that interests you or
something that you care about. Entrepreneurs who succeed do not
mind the fact that they are putting in 15 or 18 hours a day to their
business because they absolutely love what they do. Success in
business is all about patience and hard work, which can only be
attained if you are passionate and crazy with your tasks and activities.
3. Focus on your strengths. Let's face it; you cannot be everything to

everybody. Each of us has our own strengths and weaknesses. To be
effective, you need to identify your strengths and concentrate on it.
You will become more successful if you are able to channel your efforts
to areas that you do best. In business, for example, if you know you
have good marketing instincts, then harness this strength and make
full use of it. Seek help or assistance in areas that you may be poor at,
such as accounting or bookkeeping. To transform your weakness to
strength, consider taking hands-on learning or formal training.
4. Never consider the possibility of failure. Ayn Rand, in her novel The
Fountainhead, wrote, "It is not in the nature of man - nor of any living
entity, to start out by giving up." As an entrepreneur, you need to fully
believe in your goals, and that you can do it. Think that what you are
doing will contribute to the betterment of your environment and your
personal self. You should have a strong faith in your idea, your
capabilities and yourself. You must believe beyond a shadow of a doubt
that you have the ability to recognize and fulfill them. The more you
can develop faith in your ability to achieve your goals, the more rapidly
you can attain it. However, your confidence should be balanced with
calculated risks that you need to take to achieve greater rewards.
Successful entrepreneurs are those who analyze and minimize risk in
the pursuit of profit. As they always say, "no guts, no glory."
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5. Plan accordingly. You have a vision, and you have enough faith in
yourself to believe that you can achieve your vision. But do you know
how to get to your vision? To achieve your vision, you need to have
concrete goals that will provide the stepping-stone towards your
ultimate vision. Put your goals in writing; not doing so just makes them
as intangible fantasies. You need to plan each day in such a way that
your every action contributes to the attainment of your vision. Do you
foresee yourself as the next Martha Stewart of hand-made home
furnishings? Perhaps today, you need to see an artist to help you
conceptualize the new line of hand-made linens that you hope to
launch. Intense goal orientation is the characteristic of every
successful entrepreneur. They have a vision, and they know how to get
there. Your ability to set goals and make plans for your
accomplishment is the skill required to succeed. Plan, plan and plan -
because without which failure is guaranteed.
6. Work hard! Every successful entrepreneur works hard, hard and

hard. No one achieves success just by sitting and staring at the wall
every single day. Brian Tracy puts it out this way, "You work eight hours
per day for survival; everything over eight hours per day is for
success." Ask any successful businessperson and they will tell you
immediately that they had to work more than 60 hours per week at the
start of their businesses. Be prepared to say goodbye to after-office
drinks every day, or a regular weekend get-away trip. If you are in a
start-up phase, you will have to breathe, eat and drink your business
until it can stand on its own. Working hard will be easy if you have a
vision, clear goals, and are passionate with what you do.
7. Constantly Look for Ways to Network. In business, you are judged by

the company you keep - from your management team, board of
directors, and strategic partners. Businesses always need assistance,
more so small businesses. Maybe the lady you met in a trade
association meeting can help you secure funding, or the gentleman at
a conference can provide you with management advice. It is important
to form alliances with people who can help you, and whom you can
help in return. To succeed in business, you need to possess good
networking skills and always be alert to opportunities to expand your
contacts.
8. Willingness to Learn. You do not need to be a MBA degree holder or

PhD graduate to succeed in your own business. In fact, there are a lot
of entrepreneurs who did not even finish secondary education. Studies
show that most self-made millionaires have average intelligence.
Nonetheless, these people reached their full potentials, and achieved
their financial and personal goals in business because they are willing
to learn. To succeed, you must be willing to ask questions, remain
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curious, interested and open to new knowledge. This willingness to

learn becomes more crucial given the rapid changes in technologies
and ways of doing business.
9. Persevere and have faith. No one said that the road to success is
easy. Despite your good intentions and hard work, sometimes you will
fail. Some successful entrepreneurs suffered setbacks and resounding
defeats, even bankruptcy, yet managed to quickly stand up to make it
big in their fields. Your courage to persist in the face of adversity and
ability to bounce back after a temporary disappointment will assure
your success. You must learn to pick yourself up and start all over
again. Your persistence is the measure of the belief in yourself.
Remember, if you persevere, nothing can stop you.
10. Discipline yourself. Thomas Huxley once said, "Do what you should
do, when you should do it, whether you like it or not." Self-discipline is
the key to success. The strength of will to force yourself to pay the
price of success - doing what others don't like to do, going the extra
mile, fighting and winning the lonely battle with yourself.
B. Explain The Classes Of Entrepreneurship

 Business Entrepreneurs
 Social Entrepreneurs
 Intrepreneurs
 Techno-entrepreneurs
 Institutional Entrepreneurs
C. Analyze Life Situations People May Find Themselves In and The

Benefits To Be Derived From the Situations
We find ourselves in different life situations all of the time. It is a

natural law that we try to master these situations as well as have
‘dominion over them’. Some of these situations include:
1. Social Gathering;
2. Visiting A National Park;
3. Subsistence Farming;
4. Political Campaign;
5. City Life/Rural Life;
6. Unemployment;
7. Using Internet;
8. Vocational Training;
9. Hunger/Drought;
10. Family and Home
11. Being In a Foreign Country; and
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12. Family Business.
Changes in Life Situations
1. Activities and situations in life are many and varied. These situations
change over time and according to location. Things happen to you, to
your family, within your community, and even in your government that
demand things be changed and done differently. Events in your natural
environment, the legal sector, the financial sector, the labour market,
and even the weather can all force you to do things differently. Even
events happening far away from your area can affect you either
directly or indirectly.
2. In any situation, there is always something that can be done to

alleviate problems. The distinguishing characteristic of enterprising
men or women is their readiness and alertness to do something to
respond to the new situations they find themselves in. Their first
challenge is to study, analyse and interpret the situation. Through this
process the new challenges people face in the new environment can be
clearly identified. The second challenge is to come up with possible
solutions addressing these new challenges, the implementation of
which will be full of rewards for the enterprising man or woman.
3. Everybody has the potential to initiate action in any situation if they

have the will, drive and motivation. Most men or women have innate
talents and capabilities that would enable them to come up with
valued responses to any challenges brought about by new situations.
However, the majority of people tend to be slow in reacting or wait for
other people to act first. Enterprising men and women are action or
task oriented, proactive and willing to adopt leadership roles.
4. By taking action when confronted with unfamiliar situations, people

receive benefits that are either physical or psychological. Enterprising
men and women tend to react faster in new situations than ordinary
people. They are able to recognize opportunities, and take advantage
of them as long as the window of opportunity continues to remain
open. They do not wait for other people to act first, and this is
consistent with the risk-taking nature and resourcefulness of
enterprising men and women.
5. Action should be taken immediately when a person is in an

unfamiliar life situation. Implementation and accomplishment of
activities is a key characteristic of enterprising men and women. They
do not hesitate, procrastinate or delay implementation. They are
decisive and develop clear implementation plans which they try to
follow as closely as possible.
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6. To respond to and accommodate the changed situation, a person

needs to utilize tools (principles, skills, knowledge) which are
appropriate for that situation. Through proper planning, it is possible to
identify the required resources, be they physical or psychological, to
accomplish the tasks. In the same planning process, the amount of
resources required, as well as their sources, is also identified.
Exercise: Consider the situation in your environment/institution.

Identify priority issues and answer the following question.
1. What is this Life Situation About?
2. What Needs To Be Done?
3. Who Is To Do It?
4. Why Should The One Identified Do It?
5. When Should It Be Done?
6. What Is Needed To Do It?
7. How Should It Be Done?
8. What Is Your Responsibility In This?
D. Compare and Contrast Technological and Social Entrepreneurship
 Technological Entrepreneurship
The term "technopreneur" arose from within Singaporean culture to
describe an individual whose entrepreneurial endeavours focus on a
technology-centered enterprise. The government of Singapore has
embraced technopreneurship and has launched several initiatives to
promote technopreneurship as a means of economic development. In
the past three years. For example, the government now sponsors
university courses on technopreneurship and helps connect venture
capital companies with budding technopreneurs. This greater openness
has encouraged many new start-ups to form, and the country is well on
its way to fully integrating itself into the New Economy. Singapore's
success with technopreneurship policies has influenced other Asian
countries to begin such initiatives.
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For example, Malaysia recently launched its Multimedia Super Corridor

to encourage domestic technology development, and Hong Kong
recently completed the construction of its CyberPort, a
technopreneurship-friendly business district. Finally, technopreneurship
encouragement has also taken place in certain cities in India.
To utilize the educated youth, who have been trained in engineering

and computer programming, international IT companies began locating
in India, particularly in Bangalore. The result is that Bangalore has
become a powerhouse for software production. Although Indian
technopreneurs were not originally at the center of Bangalore's
technology development, they are now beginning to pop up throughout
southern India, largely due to the government's help in creating "the
right climate to encourage this sunrise industry" (Soota, 1998).
Several countries today are building techno-parks where the youths

are encouraged to get involved in IT-related activities or in some cases
other forms of hi-tech activities. These parks are solely devoted to the
development of technopreneurs.
 Social Entrepreneurship:
The idea of “social entrepreneurship” has struck a responsive chord. It
is a phrase well suited to our times. It combines the passion of a social
mission with an image of business-like discipline, innovation, and
determination commonly associated with, for instance, the high-tech
pioneers of Silicon Valley. The time is certainly ripe for entrepreneurial
approaches to social problems. Many governmental and philanthropic
efforts have fallen far short of our expectations. Major social sector
institutions are often viewed as inefficient, ineffective, and
unresponsive. Social entrepreneurs are needed to develop new models
for a new century.
In addition to innovative not-for-profit ventures, social

entrepreneurship can include social purpose business ventures, such
as for-profit community development banks, and hybrid organizations
mixing not-for-profit and for-profit elements, such as homeless shelters
that start businesses to train and employ their residents. The new
language helps to broaden the playing field. Social entrepreneurs look
for the most effective methods of serving their social missions.
E. Identify the Different Types of Entrepreneurs: Self Employed,

Opportunistic, Inventors, Pattern Multipliers, etc.
Before starting a business, there is a need to identify the type of
opportunities that are available and the type of entrepreneur you
might choose to be. Many types of entrepreneurs are needed to help
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the country to grow. Let’s look at the possibilities.

1. Self-Employed: Individuals who perform all the work and keep all
the profit. This includes everything from family-run stores,
agents, repair persons, accountants, to physicians and lawyers. It
can be a full-time job because no one else is involved or
employed within the trade.
2. Opportunistic: Those who start a business and expand as fast as
possible in order to be able to hire other employees. Usually,
these additional employees have the necessary expertise that
the owner does not have.
3. Inventors: Those with particular inventive abilities who design a
better product and then create companies to develop, produce
and sell the item. High-technology companies of this type are a
new trend.
4. Pattern Those who look for an idea someone else has already had
so that they can then create their own business
5. Multipliers:
a. Based on this model. Franchise operation or chain stores
are a form of this approach.
b. Economy of Scale Those who benefit from a large volume
of sales by offering discount prices and operating with very
low overhead.
6. Acquirers: Those who take over a business started by somebody
else and use their own ideas to make it successful. This often
happens when there is a financial problem in the current
operation. Fresh management ideas may save the business.
7. Buy-Sell Artists: Those who buy a company for the purpose of
improving it so that they can sell it again for a profit.
8. Speculators: Those who purchase a commodity and resell it for a
profit. Real estate, art, antiques and crops are typical speculator
items.
9. Internal: Those who create new ideas and turn them into a
successful project within an existing business. Although they
have neither the profit nor the personal financial risk of their own
business, they need to use the same methods of operation as an
entrepreneur.
10. Franchisee: A franchisee is an individual who starts a
business for which a widely known product image has already
been established. The franchisee owns the business and
assumes its operating responsibilities subject to specifications
set out by the franchisor.
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11. Necessity: Unemployed person who chooses to establish his/her

own business in order to survive rather than die of hunger or
continue to be dependent on parents, e.g. shoe shine boy.
F. Identify The Role Of Entrepreneurship In Business, Society And In

Self Employment
Entrepreneurs answer the hard questions that add value to the quality
of life for Society. These include:
• WHAT IS TO BE PRODUCED?
Since two-thirds of the total production of goods and services focus on
the consumer sector, consumers comprise the group who determines
what is to be produced. The entrepreneur takes note of consumer
needs, analyses them and takes decisions on what to produce.
• FOR WHOM IS IT TO BE PRODUCED?

In the economy, the “For Whom” question is generally defined as
whoever has the most money to buy the items which are made from
the factors of production. Generally speaking, the people with the most
money are those who own a successful business (consumers want their
goods and services) and/or those who are in occupations in high
demand (businesses want their skills).
• HOW WILL IT BE PRODUCED?

This is determined with the consumer in mind, primarily through the
interaction of businesses and consumers. For example, the Rolls Royce
is a luxurious car made with high expenses and lasts a long time. Many
consumers however cannot afford a Rolls Royce. Entrepreneurs note
this point and produce less exclusive cars at a lower price in order to
satisfy the needs and wants of those who cannot afford a Rolls Royce.
It has been said that “if a man/woman builds a better mousetrap, the
world will beat a path to his/her door”. In a market economy there is a
“golden opportunity” for profit, recognition and service for anyone with
the imagination, energy and drive to do a job better, or provide a
better service than others. The essence of the free enterprise system is
competition. It is competition that makes a man/woman who is already
doing a good job to try harder, instead of “resting on his/her laurels”.
This competition provides, in the end, a better standard of living for the
consumer by offering choices. The consumer “shops” to get the best
value and the best quality. When the purchase is made, the money
paid is “votes” in favour of the product or the service chosen. Those
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products or stores or services which do not receive sufficient support

(sales) in the way of “Naira-votes” from customers will perish.
It is the job of the businessman/woman who wants to be successful to

provide a little extra service, a little better product, or in other ways
improve on his/her competition. Many businesses fail each year, but
many succeed. Those that succeed perform services or offer
merchandise for sale in such a way as to satisfy the community in
which they operate. When the business no longer satisfies a number of
the population sufficient to support it, the business fails.
As the population expands, there develops a need for more businesses.

Existing businesses cannot, or will not expand to meet increased
business and, as new population centres grow, new locations are
needed. Every year several million babies are born and these “babies
are big business”. When these babies grow they become the children,
the students, the workers, the managers and the customers of
tomorrow. Even considering deaths, net yearly increase in population is
high annually!
A businessman/woman does not have to be the best manager, or have

the biggest store, to compete successfully. It is relative. If a
man/woman sees a need for a new store in a growing community and
begins operating before anyone else, he/she can get a head start on
his/her competition. If the location is good, he/she will soon have
business neighbours but, even then, they may not be direct
competition as they may represent different products and services and
actually bring more business.
The point is that anyone with imagination and a little courage to take a
chance on his/her own ability and ambition can generally be successful
in business provided the individual has progressed to the point in
his/her life when he/she is a good business risk. One must acquire the
basic education, skills, knowledge and maturity in order to reduce the
chances of business failure. Any business is a risk. The chances of
failure can be greatly reduced by education, experience and the
exercise of good judgment.
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TOPIC 4:
UNDERSTAND THE ROLE OF ENTREPRENEURSHIP

IN ECONOMIC DEVELOPMENT
INTRODUCTION:
The contribution of entrepreneurship in the promotion of economic
development should not be underestimated and therefore the need to
highlight it is essential. The entrepreneurs are the change agents and
the prime movers of the economy. It has been established that no
country can grow economically without the positive support of the
entrepreneurs and entrepreneurship. Students should be able to
classify the resources into economic, human knowledge and time and
distinguish between economic development and economic growth.
SPECIFIC LEARNING OUTCOMES:

8. Identify resources and constraints of Entrepreneurship;
9. Classify the resources into economic, human,
knowledge and time;
10. Explain how Entrepreneurship leads to import
substitution and utilization of local resources;
11. Explain how entrepreneurship leads to socio-
economic development;
12. Distinguish between economic development
and economic growth;
13. Explain the role of an entrepreneur in
grassroots / local economic development.
CONTENT:
1. Resources and Constraints of Entrepreneurship/Classify The
Resources Into Economic, Human, Knowledge And Time
Entrepreneurs use human and economic resources to help them to

implement their ideas. Economic resources include money and
equipment. Human resources include energy, skills, knowledge and
time.
ECONOMIC RESOURCES
Money: Money is necessary to obtain goods and services that

entrepreneurs want. A major way in which money is obtained is
through employment. The real value of money can be measured in
what necessities, wants and security it will provide for the future.
Equipment: Useful equipment may be as simple as a small knife or a

paper clip. It may be a telephone installed by the telephone company,
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a microwave oven with digital electronic controls, or a pocket

computer. The value of any equipment depends on the efficiency with
which it is used. Even the best equipment cannot think or act on its
own.
HUMAN RESOURCES
Energy: Good health is essential to maintaining a high energy level.

Adequate nutrition, rest and exercise are basic necessities. Personal
attitudes also have a strong influence on an individual’s energy supply.
People who accomplish a great deal usually have a positive attitude
and goals to motivate them.
Skills: Skills are developed when a person learns how to do a task

competently. Anyone can develop skills by being willing to put in the
necessary effort. There are several types of skills: practical everyday
skills such as writing legibly or doing household chores; vocational
skills that enable a person to do a particular job; and recreational skills
like dancing, painting, or sports. You can enhance your life by
adequately developing your skills.
Knowledge: A real zest for life and an active curiosity stimulate

learning. Reading, observing and listening are ways of staying in the
mainstream of life. Each individual must take responsibility for
acquiring a certain amount of knowledge by developing
communication skills such as reading, writing, speaking and listening.
Time: Time is a unique resource. Everyone has the same amount

(24 hours a day and 168 hours each week). A large portion of time is
taken up by daily activities like eating, sleeping, school, work and
hygiene. The remaining time should be spent on recreational activities
and special interests that provide satisfaction.
Finally, the extent to which the person(s) involved can acquire or

organize resources in adequate measure will not only influence
performance but also, in some cases, influence whether they start at
all. Examples here include capital, cash, premises, materials,
equipment and labour. The availability of infrastructure (e.g. utilities
like electricity, telephone, roads) and support services might also be
important.
2. Explain How Entrepreneurship Leads To Import Substitution And

Utilization Of Local Resources
Entrepreneurship trains the individual to identify, analyse and utilize

opportunities through value addition to create something needed
around him. The recognition of a business opportunity coupled with the
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ability to respond effectively is the basis for starting and maintaining

successful ventures. This involves not only generating ideas or
identifying opportunities, but also screening and evaluating them to
determine the most viable, attractive propositions to be pursued.
A business opportunity may be defined simply as an attractive

investment idea or proposition that provides the possibility of a return
for the person taking the risk. Such opportunities are represented by
customer requirements and lead to the provision of a product or
service that creates or adds value for its buyer or end-user.
A business opportunity must fulfill, or be capable of meeting the

following criteria:
_ Real demand
_ Return on investment
_ Be competitive
_ Meet objectives
_ Availability of resources and competencies
Goods that are imported into a society must of necessity have local
demands. The strength of this demand is a measure of how successful
the product has been in the market. Entrepreneurs can take any locally
available raw materials and work out the process for creating similar or
identical products (substitutes) thus reducing the need for imports. In
most cases the local substitute is much better than the imported one.
The case of locally produced frozen chicken has shown that fresh local
chicken have better taste and are more desirable.
3. Explain How Entrepreneurship Leads To Socio-Economic

Development
The Entrepreneur in Society

An entrepreneur may be defined as a person who is able to scan the
immediate environment, generate ideas, gather resources and take
action to take advantage of an opportunity. Learners need to be aware
of the possibilities of being entrepreneurial in their personal lives as
well as in conducting their business activities.
Learners should understand that a variety of resources are needed to
be successful in an enterprise. Entrepreneurs are experts in the use of
resources such as the following both in their personal life and in
business situations: money, equipment, energy, skills, knowledge and
time.
For a market-based economy to work well, efficiently and prosperously,
it requires entrepreneurs – those creative men and women who can
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identify what the market needs and wants and can find an efficient way
to meet the demand. Entrepreneurs make the economic system work
and make life better for everyone concerned by creating new products,
developing new and efficient methods, and offering lower prices
through effective competition.
The successful entrepreneur recognizes what consumers want or might
want, and produces it in a competitive manner for sale. Profit is the
return to a business if demand is met effectively, and loss is what a
business gets if it does not meet this demand.
The entrepreneur also makes effective decisions on how to produce
efficiently in order to obtain competitive products whose prices and
quality are acceptable to the customer. A socially responsible
entrepreneur also makes products which meet safety, environmental
and other legal requirements.
Entrepreneurs also make decisions on how to distribute the goods and
services that are produced to those customers willing and able to pay
for them. Through competition, entrepreneurs are able to offer prices
that influence consumers’ decisions to buy.
Entrepreneurship and Leadership Styles

Entrepreneurs are responsible for setting goals and making plans for
their business. To a great extent, the work of employees plays a large
part in implementing these plans and achieving goals. Developing and
maintaining morale is, therefore, an important task of the
entrepreneur.
Leadership qualities must be self-developed because these qualities
vary from person to person. Knowing that you are personally
responsible for your leadership ability will help you to strive to make
improvements. There is no single best way to be a leader.
Entrepreneurs are individuals who have developed their own personal
styles of leadership. The following three styles of leadership are
commonly used:
o The “iron fisted” or autocratic leader makes decisions and
gives orders without asking the opinion of employees;
o The “let’s vote” or democratic leader gives group members
a voice in decisions;
o The “hands-off” or laissez-faire leader leaves all decisions
up to the group members.
Most leaders use a combination of styles, depending on the group and

the situation.
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Leaders in the business world have two main responsibilities:

(a) Task responsibilities, or “getting the job done”, and
(b) People responsibilities, or maintaining employee morale.
To a great extent, leadership is an attitude which is demonstrated in

the approach entrepreneurs have toward “getting the job done.” A
leader is usually willing to assume challenges which may involve great
risks and potentially great opportunities.
A leader understands the total task to be accomplished and is able to
determine new and innovative ways to accomplish the task. To
maintain morale, a guideline for good leaders to follow is “treat others
as you would like to be treated.” Trying to view a situation through the
eyes of the other people involved will help in developing a positive
“you” attitude towards employees.
A good leader achieves a balance between the following two types of
responsibilities. Sometimes certain situations, such as forming a new
group, call for paying attention to people more than tasks. Other
situations, such as the introduction of a new procedure, will probably
require more attention to tasks rather than people. Understanding
leadership can help entrepreneurs become more effective leaders.
4. Distinguish Between Economic Development And Economic

Growth
Economic Development/progress is an essential component of

development that is conceived of as a multi-dimensional process
involving changes in structures, attitudes and institutions as well
as the acceleration of economic growth, the reduction of
inequality and eradication of absolute poverty. The basic needs
and desires of individuals and social groups within that system,
moves away from a condition of life widely perceived of as
unsatisfactory towards a situation or condition of life regarded
materially and spiritually better.
Economic growth means an expansion in real terms of national

income per head. Closely associated with this must be an
improvement in the overall standard of living of the citizens.
5. Explain The Role Of An Entrepreneur In Grassroots / Local

Economic Development
In most parts of Asia and Africa social entrepreneurs are involved in

building human and social capital at the grassroots with the sole aim of
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improving the quality of lives at the grassroots. These entrepreneurs

help community groups to:
 Clarify the role of the grass roots in the Nigerian

society of the future
 Learn how to prepare and carry out a shared
community project
 Learn how to map local communities for
development
 Learn how to establish personal or group micro-
business by teaching entrepreneurial skills
 Learn how to select projects/events that will foster
bonds and rapport in the community.
Cost benefits to the Nation:
The ability of the ordinary citizens to gain the skills of income

generation and project selection and to improve the status of
grassroots women/youths through self actualization shall mean the
establishment of an enduring political culture. The entrepreneurial
component of this project help to create income for the grassroots
women/youths; and foster linkages between them and their local
authorities in a more fruitful and rewarding manner.
As a process of civic engagement, the Community Consultation Process

seeks to bring together all stakeholders in the community as well as
the traditional authorities, the local, state and federal government to
establish consensus, through sharing of knowledge and experiences on
key policy and operational priorities that should influence the design
and implementation of poverty reduction programs and projects.
Local Enterprise Development (LED), and Grassroots Empowerment

using financial and non-financial intermediations help in achieving a
short, medium and long-term quantifiable employment generation and
skills enhancement; mobilizing resources within the communities for
development. The major benefits of the model are that:
o The programme engages full participation of operatives
and beneficiaries from project development to group formation,
disbursement strategy, management of the individual’s and the
group’s projects.
o It was designed to change old financial habits at the grassroots,
and develop new ones to entrench sustainability of the project. It
was designed to survive political/continuous government
patronage and reside the responsibility for success within the
community
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In summary a well-planned LED project will produce a critical mass of

youths and women at the grassroots who are active producers and
actors in local economic development. The envisaged effect will be
vibrant grassroots agricultural enterprises as well as local value
addition; and massive grassroots participation in local development
activities. The advocacy component of this programme will create local
values as well as a generation of citizens that will demand
transparency and accountability from their local government officials.
The positive outcome of the grassroots empowerment programme will

reinforce the internal links of solidarity within the community and
increase the community’s confidence in its own skills and in the local
governance.
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TOPIC 5:
UNDERSTAND ENTREPRENEURIAL
CHARACTERISTICS AND ATTITUDES
INTRODUCTION:
It is very important that the students, who are expected to be potential
entrepreneurs, comprehend the qualities, characteristics and attitudes
involved with entrepreneurial undertakings. It is against this
background that this section is presented so as to guide all
stakeholders on entrepreneurship. Students should learn to evaluate a
project considering its resources: management of time, personnel,
equipment and money as well as understand constraints and problem
solving techniques

1. Explain the philosophy, values, scope, need and characteristics
of Entrepreneurship;
2. Explain the profiles of local Entrepreneurs;
3. Demonstrate high sense of innovation, creativity and
independence;
4. Explain the process of acquiring high sense of information
seeking and ability in operating an enterprise;
5. Identify various risks and remedies involved in operating an
enterprise;
6. Evaluate pilot project considering resource, time, personnel,
equipment, money, materials etc.
7. Explain constraints and problem solving techniques;
8. Demonstrate leadership and leadership skills by mobilizing
resources for establishing an enterprise;
9. Demonstrate high level problem solving techniques in
overcoming internal and external constraints.
CONTENT:
1. Explain the Philosophy, Values, Scope, Need and Characteristics
of Entrepreneurship
There are certain characteristics that people should possess or have

the potential to develop if they wish to be entrepreneurial. As a group,
when measured on various personal characteristics and skills, a
number of traits emerge (such as risk-taking ability and leadership)
where entrepreneurs differ from non-entrepreneurs.
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Important Entrepreneurial Traits

Hard Working: running a business requires a lot of energy and drive.
This involves the ability to work for long hours when necessary, to work
intensely in spurts and to cope with less than a normal amount of
sleep.
Self-Confident: to succeed, entrepreneurs have to believe in
themselves and in their ability to achieve the goals they have set for
themselves. This is often shown by a belief that “if you want something
badly enough and are prepared to work at it, you’ll usually get it”.
Builds for the Future: the goal for most successful business people is to
build a secure job and income for themselves which is based on their
own abilities. This means entrepreneurs understand that it may take
several years to build up business income to a reasonable standard.
Profit-Oriented: interest in generating money is a clear indicator of an
entrepreneur’s suitability for being a business owner. This means
recognizing that the business comes first. Once profits are generated,
the entrepreneur can make decisions about how the profits can be
used – to expand the enterprise or for personal use.
Goal-Oriented: success in business depends upon being able to set
realistic goals or targets and to work with determination to achieve
them. This ability to set goals (for things the person thinks are
worthwhile) and to work to achieve them is fundamental to being an
entrepreneur.
Persistent: all businesses have their problems and disappointments.
Being persistent in solving a problem is one of the keys to being a
successful entrepreneur.
Copes with Failure: All business ventures inevitably contain
disappointments and failures as well as successes. Coping with failures
involves recognizing these failures, learning from them and seeking
new opportunities. Without this characteristic, early failures may end a
person’s attempt at self-employment.
Responds to Feedback: entrepreneurs are concerned to know how well
they are doing and to keep track of their performance. Obtaining useful
feedback and advice from others is another important characteristic of
entrepreneurs.
Demonstrates Initiative: research shows that successful entrepreneurs
take the initiative and put themselves in positions where they are
personally responsible for success or failure.
Willing to Listen: the successful entrepreneur is not an inward looking
person that never uses outside resources. Self-reliance does not
exclude the ability to ask for help when needed from such people as
bank officials, accountants and business advisers. Being able to listen
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to the advice of others is a key characteristic of an entrepreneur.

Sets Own Standards: setting standards of performance and then
working to achieve them is another indicator of a successful
entrepreneur. These standards can be income, quality, sales or product
turnover. Most entrepreneurs want to do better each year, to set and
achieve higher standards from year to year.
Copes with Uncertainty: being an entrepreneur is much more uncertain
than being employed. This uncertainty is about sales and turnover, but
it often also exists in other areas such as material delivery and prices,
and bank support. An ability to cope with this uncertainty without
becoming too stressed is a necessary trait of being an entrepreneur.
Committed: starting and running an enterprise demands total
commitment by the entrepreneur in terms of time, money and lifestyle.
It has to be a major priority in the entrepreneur’s life.
Builds on Strengths: successful business people base their work upon
the strength(s) they have, such as manual skills, interpersonal skills,
selling skills, organizational skills, writing skills, knowledge of a
particular product or service, knowledge of people in a trade and ability
to make and use a network of contacts.
Reliable and Has Integrity: the qualities of honesty, fair dealing and
reliability in terms of doing what one has promised to do are essential
traits of an entrepreneur.
Risk-Taker: being an entrepreneur involves some risks. Entrepreneurs
have the ability to take measured or calculated risks. Such risks involve
working out the likely costs and gains, the chance of success and the
belief in oneself to make the risk pay off. Entrepreneurs may be
considered risk avoiders when they reduce their risks by having others
assume part of the risk. Those who assume the entrepreneur’s risk
may be bankers, suppliers and customers.
2. Explain the Profiles of Local Entrepreneurs
Not all entrepreneurs have all the traits above. However, each
entrepreneur is strongly driven by his personal motive and enjoys
doing what they do irrespective of the amount of hard work required.
Following is the story of some selected entrepreneurs. Each story has

been chosen to demonstrate the diverse drivers of entrepreneurship.
The student is encouraged to interview entrepreneurs in his
neighbourhood to find out how they started their business and what
has kept them going.
Betty owns a currency exchange business: Betty is a young lady of
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about 38 years. She opened her business 5 years ago after working for
a financial house.
I had worked in currency exchanges for ten years, and I was
determined to have one of my own someday. In the beginning I had
difficulty getting enough capital. I think banks were reluctant to help
me because I’m a woman. But I needed financial assistance, because I
didn’t have enough money of my own.
Crime is a problem if you own a business in my community. It’s the
biggest difficulty I have with the exchange. Customers might get
robbed as they leave, so I’ve had to spend money for a security guard.
I don’t want to lose my business, so I’ve got to work hard to make a
living. To tell you the truth, I thought I’d be making more money; but,
I’m only breaking even. But I’m happy. I wouldn’t want to have to work
for anyone else again. I’m my own boss and I’ve accomplished
something. I’ve actually made my dreams come true. To me, owning
my own business is just a beautiful, beautiful thing.
Tayo owns a firm specializing in marketing and communications. Tayo,

a 35 year old graduate of mass communication from a reputable
university, retired as senior manager of an advertising agency. He
started his own business four years ago.
The time was right for me to start my own business. I had a wife who
worked; we had one child, no responsibilities, and some money. I’d
worked for a small advertising agency for seven years, and I left on
very good terms. I didn’t take any accounts with me, so there were no
hard feelings. A business like mine can be started without a large
investment. I think my major investment was a personal computer. I
put down a deposit for a phone, bought several filing cabinets, and
traded professional services for office space.
When I opened, I sent announcements to everyone I knew. People
don’t call you right away, but they put your name in the back of their
minds and call you later. I also sent out a newsletter to business
acquaintances I thought might be clients some time in the future. Any
business (I don’t care what it is) is 99 per cent selling. If you can’t sell,
you won’t make money.
Emmanuel owns an art gallery which specializes in signed prints and art
posters. Emmanuel is 25 years old. He has little or no formal education. His
talent as an artist was encouraged by visiting artists to the neighbouring
university campus.
When I first thought of opening a gallery, I went around and talked to people
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in the art community. I asked them what I needed to know to open a gallery.
The more people I talked to, the more ideas I got. You never should be shy
about asking other business owners for help. Not everyone’s going to be nice
about sharing ideas, but most business owners are friendly and believe that
competition is healthy. Besides, successful entrepreneurs love to talk about
their successes.
Running a business takes a great deal of time. You have to be willing to work
seven days a week. You have to think about the business 24 hours a day.
Sometimes it gets lonely. There’s no one to turn to, and all the problems are
yours. Having some experience in sales helped me in the business. But many
specific things had to be learned on-the-job. Business schools don’t teach
you how to wrap packages, but that’s an important part of the retail
business.
My advice to anyone thinking about going into business, especially a retail
business, is to be flexible. Move with the market trends. Don’t stock what
you think customers ought to have. Stick to your standards and tastes but
don’t blame the customer if your merchandise doesn’t sell. My gallery is a
great source of pride to me. Still, I always have to keep working to make my
business grow. I don’t feel I’ll ever be able to sit back, put my feet up and
say “I’ve done it.” I shall always have problems, and my task is to solve
them.
John has owned a small restaurant for three years. Like Emmanuel,
John has little or no formal education. It is interesting to know that John
has lost his parents while in the primary school. He had no one to help
him with further education. He is just 28 years old.
I started by working at a restaurant in another town. I waited on tables,
cooked, did the purchasing and bookkeeping and picked up a basic
understanding of the business. Later, I spent some time at two other
restaurants in town learning about managing a restaurant. Most people
think if they are good cooks they can open a restaurant. It’s not that
simple! You’ve got to know every area of the food business, such as
purchasing, advertising, cooking, managing employees and customer
relations.
Young people come to me and say, “I want to learn about operating a
restaurant from you so I can open my own.” I tell them, “That’s okay
with me, I’ll have you cook, bartend, wait on tables and clean up
tables.” They say, “You don’t understand. I want to learn how to
manage.” Well, I believe that you’ve got to “feel the business” from the
ground up before you can run it.
I enjoy the freedom of being in business. I like being my own boss. I
have twelve employees, and it gives me a good feeling when they ask
me for advice. It would be difficult for me to work for somebody else.
But I might become an employee in the future. I’m only twenty-eight
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years old, and my career could take many turns. I hope that if I did
have to work for someone else, I could pretty much do what I wanted. I
like making decisions and being a leader.
3. Demonstrate High Sense of Innovation, Creativity and

Independence
An enterprise operates in an economic and political system; and as
such the entrepreneur should cultivate attitudes conducive to change.
Understanding these attitudes can help entrepreneurs cope with
change more effectively.
1. Being Flexible and Receptive. These traits are direct opposites to

obstinacy and a closed mind. The person who is receptive to
new ideas, who responds to the forces of change as they occur,
is able to adjust to changing conditions. Read current trade
magazines and literature and as well as observing similar
businesses for ideas.
2. Being Self-confident. Self-confident entrepreneurs can accept

change with the determination to overcome obstacles,
compensate for deficiencies, and strengthen abilities. Being
afraid of one's inadequacies and afraid to try something new for
fear of failing very often prevents growth and eventually leads to
failure.
3. Being Optimistic and Enthusiastic. By focusing on the positive

aspects of change instead of the negative ones, the event can be
viewed as challenging instead of threatening. The rewards can
be played up and the costs played down. When we become
enthusiastic about doing something, it is easier to invest our
time and effort and money to bring about the desired effects.
4. Being Decisive and Self-controlled. Coping with change requires

clear thinking and, in many cases, deliberate action.
Circumstances surrounding change are often unexpected, unfair,
frustrating, disappointing, frightening, upsetting, or unpleasant.
Emotions have to be controlled while decisive action is taken to
cope with the change.
5. Being Competitive and Creative. Being competitive means

searching for a better way to improve upon the present situation.
Improvement is one factor that always has to be considered
when planning change.
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6. Being Curious and Experimental. Not every new idea is a good

idea. To find the ones that are good ideas, you'll probably look at
many possibilities. People who enjoy trying new things can take
disappointment because they balance it against the occasional
thrill they get from implementing a really good idea.
4. Explain the Process of Acquiring High Sense of Information

Seeking and Ability in Operating an Enterprise
The process of acquiring a very high sense of information seeking and

capability to follow through to actualization is called motivation. A
person is motivated when his dreams become very real to him. He
develops a strong urge to follow this dream. This will drive him to seek
any relevant information that will lead to its actualization.
Motivation starts with the desire to be free, to be free from
dependency on others, freedom to live the lifestyle we dream of,
freedom to explore our ideas. Total freedom is not possible or
desirable, but the struggle to achieve that ideal is the basis for
motivation.
Motivation is built on three basic elements:
1. Motivation starts with a need, vision, dream or desire to achieve

the seemingly impossible. Creativity is associated with ideas,
projects and goals, which can be considered a path to freedom.
2. Developing a love-to-learn lifestyle, become involved with risky

ventures and continually seek new opportunities. Success is the
result of learning what works and what does not work.
3. Develop the ability to overcome barriers and to bounce back from

discouragement or failure. Achievers learn to tolerate the agony
of failure. In any worthwhile endeavour, barriers and failure will
be there. Bouncing back requires creative thinking as it is a
learning process. In addition, bouncing back requires starting
again at square one.
A loss of any one part and motivation is on the rocks. For example:
• If you like to be creative and love to learn but cannot face up to

failure, you will not go back and try again. Persistent is
associated with bouncing back.
• If you have a unique idea but don’t like taki ng risks, idea is all
you will ever have.
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• There must be something in your life that turns you on. You can
start by analyzing the lifestyle of your dreams. Remember,
money is not a goal; it is a reward for achieving a goal.
7 Rules of Motivation
1 Set a major goal, but follow a path. The path has mini goals that
go in many directions. When you learn to succeed at mini goals,
you will be motivated to challenge grand goals.
2 Finish what you start. A half finished project is of no use to

anyone. Quitting is a habit. Develop the habit of finishing self-
motivated projects.
3 Socialize with others of similar interest. Mutual support is

motivating. We will develop the attitudes of our five best friends.
If they are losers, we will be a loser. If they are winners, we will
be a winner. To be a cowboy we must associate with cowboys.
4 Learn how to learn. Dependency on others for knowledge supports

the habit of procrastination. Man has the ability to learn without
instructors. In fact, when we learn the art of self-education we
will find, if not create, opportunity to find success beyond our
wildest dreams.
5 Harmonize natural talent with interest that motivates. Natural
talent creates motivation, motivation creates persistence and
persistence gets the job done.
6 Increase knowledge on subjects that inspires. The more we know

about a subject, the more we want to learn about it. A self-
propelled upward spiral develops.
7 Take risk. Failure and bouncing back are elements of motivation.

Failure is a learning tool. No one has ever succeeded at anything
worthwhile without a string of failures.
5. Identify Various Risks and Remedies Involved in Operating an

Enterprise
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Small business operators must recognize that they operate in an

environment where uncertainties and change are the norm rather than
the exception. They must be aware of the risks associated with these
changes and be prepared to participate in change if they must
continue to grow their business. Some of these changes are:
The Social Environment: Changes include the make-up of the

surrounding residential areas, make-up of the clientele frequenting the
business community, and changes in the social climate influencing
demand for various products and services. When neighborhoods
change from predominantly young families to middle-aged or elderly
residents, consumer demand also changes.
The Economic Environment: Since business is primarily a segment of

the economy, rather than the social or political scene, most people
readily recognize the impact of the economy on small business. When
unemployment is high and money is tight, customers cannot spend as
much. During inflation business expenses keep going up. The cost of
living goes up and employees want higher wages. Eventually, the
impact is felt in every phase of operations.
The Political Or Governmental Environment: Fortunately for small

businesses in many countries the political climate is fairly stable.
Nevertheless, small business does have to contend with an abundance
of government paperwork, legislation, and taxation. Small business
has to deal with government at the local, district, and state levels, and
in some cases, at the federal level. In addition, specific government
agencies have become involved with small business.
The Technological Environment: Technological innovation has always

helped to bring about changes in all aspects of society. In the past few
decades, however, it seems that the pace of technological innovation
has increased dramatically. All these technological innovations keep
changing our lifestyle, our needs, our wants, our buying habits. The
businessperson who does not respond will soon find his or her products
and services obsolete.
Remedies: The fact is that we are all dependent on the world around
us. And small business, just like each individual in our society, must
cope with the changes in our environment.
Participating In Change: There are a number of ways small business

owners can affect the external environment to their own benefit,
although much of this environment is beyond their control.
Participation in a joint remodeling project with other businesses in the
vicinity can produce a more attractive and appealing shopping
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atmosphere, to draw more customers. Small business owners can

back favorable legislation at all levels of government. They can
become involved in the community to make it a suitable place to
conduct business.
Anticipating Change: Probably the most important aspect of coping

with change, however, is in anticipating it, and in planning ahead for it.
Many of the most effective methods of adjusting and adapting take
time to implement and even more time to produce the desired results.
The longer a person waits to act when change can be anticipated, the
more one limits available options and the effectiveness of the actions.
When anticipated changes in the external environment are considered,

decisions should be made so that they can be incorporated into the
short-range and long-range business plans. Regardless of what
specific plans are used, certain steps should be followed:
1. Determine short- and long-range goals and objectives.

2. Consider options in attaining goals and objectives.
3. Select methods and specific implementation procedures.
4. Review and evaluate results to correct mistakes.
Responding to change when it is already upon you is the least

acceptable of these three patterns. When a situation is already critical
you are forced to settle for second best. Quick solutions with
immediate results are chosen instead of an action that takes time to
implement but would bring better results in the long run.
All this person needs to know is that a prospective benefit can be

derived from a change, and then he or she is ready to move. Not
waiting for the outside world to change, this person looks ahead and
lets the anticipation of change serve as a driving force. By
understanding how all these different factors interact to bring about
change, you can make a more meaningful decision about how you
want to handle the problems associated with change in your own
business.
6. Evaluate Pilot Project Considering Resource, Time, Personnel,

Equipment, Money, Materials Etc.
In recent years, project feasibility study has become an increasingly

detailed and technical set of procedures practiced by highly trained
economists and engineers. And yet very often these procedures seem
irrelevant to the practical people designing and managing projects.
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Why? Perhaps it is because these procedures ignore some of the most

important questions.
What do practical project designers need to know in order to have

confidence in potential projects? Essentially they need to know:
(1) if the proposed project will really achieve its objectives;
(2) how they can improve the likelihood and level of its impact;
(3) whether there is a less expensive way to achieve the same

results; and
(4) whether, all things considered, the benefits justify the costs.
A good technical analysis of a project will consider a number of

production factors that include available resources, time, personnel
and their capabilities, equipment, money available, raw materials and
their sources, etc. A brief of this is given below.
Products:
 Description of the product including specifications relating to
their physical, mechanical and chemical properties;
 Uses of the products
Processing Activities:
 Description of the process showing simplified flow charts
indicating comprehensive materials and energy requirements;
 Consideration of alternative processes and justification for
adopting the chosen process;
Firm Size and Production Schedules:

 From market studies, indication of demand for the product
 Consideration of availability of inputs and possibility of
importation of raw materials (where necessary);
 Consideration of the start up and technologies and know-how;
Machines and Equipment:

 Machines and equipment layout
 Specifications of the machinery and equipment required
indicating rated capacities of each
 Source of supply of machinery and equipment (indicating
whether local or foreign), and including costs and terms
 Comparative analysis of alternative machinery and equipment in
terms of cost, reliability, maintainability and local technical
expertise
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Project Location:
 Map showing project location
 Desirability of location in terms of distance from the source of
raw materials, market and other factors
 Desirability of location in terms of infrastructure, and utilities
supply
 Comparative study of different locations indicating advantages
and disadvantages
Project Layout:
 Description of the project layout showing buildings and facilities
 Types of buildings and estimated cost
 Land improvements such as assess roads, drainages, etc
 Type of supplementary local utilities and cost
Raw Materials:
 Description and specifications relating to their physical,
mechanical and chemical properties
 Current and prospective costs of raw materials including source
of materials
 Local availability, continuity of supply all year round, and
prospect for importation
Waste Disposal:
 Description and quantity of waste to be disposed of
 Description of the chosen waste disposal method and cost
 Comparison with other methods to indicate cost benefit
 Compliance with legal requirements with regards to
environmental impact
Environmental Impact Studies:

 Description of the environment of the project location
 Description of the project needs and processing technologies
 Prediction of impact of project waste products and processing
activity on the environment
 Mitigation measures to treat impacts
 Residual impacts and further studies to treat such residual
impacts
Manpower Requirements:
 Skilled and unskilled labour requirements
 Technical and managerial staff requirement
 Training needs assessment and training schedules
 Proposed remuneration including fringe benefits
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7. Explain Constraints and Problem Solving Techniques
When doing business, you need to make routine decisions every day:
Do I have to order raw materials? To what date? From where?
Sometimes, however, you need to make decisions with a high impact
on the future of your business: Should I enlarge the capacity of my
workshop? Should I hire or fire workers? Should I change my products?
Because of their importance, these latter decisions need to be well-
reasoned. For that reason, it’s worth thinking about a process which
leads to such well-reasoned decisions. The following hints may help to
improve your ability to analyze problems and make decisions.
Process
Before you can make a decision, you have to know, what are the
problems to solve, what are your goals, what are the possibilities you
have to solve the problems and what advantages and disadvantages
every solution has. Thus, the process of making good decision is as
follows:
Step 1: Analyse your situation!

First, analyse the actual situation and consider the most likely future
possibilities. See appendix A for the type of questions, you should
make.
Step 2: Set goals!

Now, think about your goals. How would you like the situation to be?
Step 3: Determine your possibilities!

Determine what the possibilities are for reaching your goals
Step 4: Make an assessment of the possibilities!

Every possibility has its strong and its weak points. This is the reason
why you have to analyse the possibilities to see whether they would
help to solve your problems. It is also important to calculate the costs
of each possibility and assess whether it corresponds to your goals.
Step 5: Decide!
You now have enough information to make important decisions about
the future of your business. However, your resources (money,
equipment and workers) are limited. You cannot solve all your
problems or take advantage of all opportunities all at once. You will
have to decide which problems to address first, and which
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opportunities offer the best chance of improving your business. In

other words, it is necessary to set priorities and make plans.
Exercises:
Think about your own business and do the following:
· Analyse your present situation and write down the most important
problems.
· Analyse your future potential: What are the market trends? What will
be the direction of technical development? What are the expected
government strategies? Write down the expected effects of these
aspects on your business.
· Think about your goals. Write them down, ranking them according to
their priorities.
· Think about your problems and your goals. What problem has the
highest priority? Make a ranking and write it down.
· Consider potential solutions to your problems. Write them down.

· Rate every potential solution. What advantages and disadvantages do
they have? How much do they cost and how much labour capacity
would they involve? Rank the solutions and for every problem decide
on the best solution. Write this down.
· Think about your resources. Write down how much money and labour
you could invest in a project to improve your situation.
· Make some decisions. What problem(s) should be solved first and

which solution(s) should be chosen?
A plan is not worth the paper on which it is written until faithfully

implemented. The National experience at budget implementation and
or poor or non implementation of development plans attest to this. The
projects, you decided for should be implemented, because without
implementation the best idea is not worth very much. The
implementation of projects is the primary responsibility of the business
owner or manager.
The following steps will help you implement any project:
Step 1: Determine how to do it!

Decide how to implement your project. List on a sheet of
paper the whole way of implementation, step by step. This
list is your action plan.
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Step 2: Determine the dates, when specific steps have to be

completed!
Set the date when each step should be completed.
Step 3: Determine the responsibilities!

Determine who is responsible for each step.
Step 4: Instruct your workers!

Make sure every worker knows what he has to do and when
he has to do it.
Step 5: Check the work!

Find the answers to the following questions:
· Are there problems which require the help of others?
· Is the quality of work satisfactory?
· Is the work being done on time?
Checking should be done as frequently as necessary.
Step 6: Keep your action plan up to date!

Your action plan is an important tool and should be kept up
to date.
Exercise:
Considering the problem(s) and solution(s) you have chosen, think

about implementation:
· Make an action plan of things to be done.
· Your action plan should indicate:
· What action is necessary?
· Who is responsible for each action?
· When each action should be carried out.
· Write down the specific instructions for each person who has
responsibility for part of the action plan.
· Use your action plan to manage implementation. Follow up frequently

and check to see if each action was carried out as planned
8. Demonstrate Leadership and Leadership Skills By Mobilizing

Resources For Establishing An Enterprise
Leadership Styles
Entrepreneurs are responsible for setting goals and making plans for
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their business. To a great extent, the work of employees plays a large

part in implementing these plans and achieving goals. Developing and
maintaining morale is, therefore, an important task of the
entrepreneur.
Leadership qualities must be self-developed because these qualities
vary from person to person. Knowing that you are personally
responsible for your leadership ability will help you to strive to make
improvements. There is no single best way to be a leader.
Entrepreneurs are individuals who have developed their own personal
styles of leadership. The following three styles of leadership are
commonly used:
1. the “iron fisted” or autocratic leader makes decisions and
gives orders without asking the opinion of employees;
2. the “let’s vote” or democratic leader gives group members
a voice in decisions;
3. The “hands-off” or laissez-faire leader leaves all decisions
up to the group members.
Most leaders use a combination of styles, depending on the group and
the situation.
Leaders in the business world have two main responsibilities:
(a) Task responsibilities, or “getting the job done”, and
(b) People responsibilities, or maintaining employee morale.
To a great extent, leadership is an attitude which is demonstrated in
the approach entrepreneurs have toward “getting the job done.” A
leader is usually willing to assume challenges which may involve great
risks and potentially great opportunities.
A leader understands the total task to be accomplished and is able to
determine new and innovative ways to accomplish the task. To
maintain morale, a guideline for good leaders to follow is “treat others
as you would like to be treated.” Trying to view a situation through the
eyes of the other people involved will help in developing a positive
“you” attitude towards employees.
A good leader achieves a balance between the following two types of
responsibilities. Sometimes certain situations, such as forming a new
group, call for paying attention to people more than tasks. Other
situations, such as the introduction of a new procedure, will probably
require more attention to tasks rather than people. Understanding
leadership can help entrepreneurs become more effective leaders.
9. Demonstrate High Level Problem Solving Techniques In

Overcoming Internal And External Constraints
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Probably the most effective means of reducing the stress involved in

change is in understanding our attitudes of resistance to change and
consciously developing attitudes more conducive to change. The next
step is to reduce the indecision and confusion over how to proceed
with the change by applying decision-making techniques. In this way
you can actively deal with the change instead of letting the change
control you. A basic decision-making technique can be applied to
solving any problem and in particular coping with change. The four
steps are: understanding the situation, define the problem, find
alternatives, and select action.
1. Understanding the Situation: We need to understand what the

driving forces are and what the restraining forces are, whether they will
be increasing or decreasing, and how that is going to affect the
business in the short and long term. Let's consider an example of a
change situation in small business and follow it through each of the
four steps in the decision-making process. Assume that you operate a
moderately successful store in the business district of Abuja. The
change situation constitutes a new shopping area being planned for
the outskirts of the city. Now, the first step in the decision-making
process is to understand the situation.
The first question is, what changes can you anticipate in the driving
forces and restraining forces acting on your small business? Will the
new shopping area draw customers away from the present business
district? Will any of the big customer-drawing businesses be
relocating? Is your business district showing signs of physical
deterioration? Are customers already dissatisfied with the shopping
convenience of the business district? If you take no special action,
what are the chances of declining profit and eventual business
collapse? You need to examine every aspect of the situation before
you can even define the problem.
2. Defining the Problem. The problem might be defined as a need to

take some kind of action now, which will have one of four different
effects:
1. Prevent the new market area from eventually destroying the

business.
2. Reduce the negative impact of the market area as much as
circumstances allow.
3. Take positive action if possible to counter directly the draw of the
market area.
4. Take advantage of the draw of the new market area by relocating
or expanding into it.
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3. Finding alternatives: This step is a very complex and critical one

in the decision-making process. You need to do a little bit of research
to make sure that you do not overlook the alternative that may be your
best bet. Then you need to take each realistic alternative and explore
its potential, identifying advantages or disadvantages, costs and
benefits, short-term and long-term effects, and other factors that might
influence its effectiveness.
With our example, the four action alternatives presented above reflect
the degree of involvement in the change as we define the problem.
Each of those four alternatives calls for specific alternative actions to
achieve basic objectives.
For instance, the final alternative, taking advantage of the draw of the
new market area, presents several alternatives. They include
relocating in the market area when it opens, keeping the present store
location and opening a sister store in the market area, closing the
present business operation and reinvesting in a different kind of
business in the new market area, and others.
The third alternative, directly countering the draw of the new market
area, offers several choices. One is to work with the city to improve
the appeal and convenience of the business district. After all, the city
will eventually lose taxes if the business district deteriorates and
collapses. Another is to work with neighbouring businesses to
establish a central theme for widespread remodeling projects, which
would create a more appealing atmosphere for the customer.
The small business owner could replace the negative impact of the
new market area in a number of ways without taking any of these
decisive actions. The store could be redecorated, remodeled, or
rearranged inside to be a more pleasant place. New product lines
could be added to draw new customers or provide a better selection.
New services could be added. In short, by making special efforts to
keep the customers satisfied you can make the drawing power of the
new shopping area a little less strong.
4. Selecting Action: Once all the alternatives have been spelled out
and the impact and potential of each has been studied, it is time to
select the action that best fits your goals and objectives, your
capabilities and limitation, and follow through.
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TOPIC 6:
UNDERSTAND THE KEY COMPETENCIES AND DETERMINING FACTORS FOR SUCCESS IN

ENTREPRENEURSHIP
INTRODUCTION:
For entrepreneurship to succeed there are certain prerequisites which
form the core competencies that are basic for attaining success. These
competencies are discussed and highlighted in this section. Students
should learn to collect data about themselves, and use such data to
determine “who am I”, assessing personal efficiency, rating of
concepts, self-knowledge as well as identifying core skills, and success
factors required for entrepreneurship. Students would also observe the
behavioural pattern in moderate risk taking, goal setting etc. and also
learn how to play relevant business games.

1. Identify the key competencies required in setting up a successful
small business; Knowledge, Skill and Traits;
2. Identify key success factors in setting up a small business;
Resources, Ability, Motivation and Determination, Idea and
Market etc.
3. Define individual life goals and link them to Entrepreneurship;
4. Identify the strength and weaknesses in 3 above;
5. Explain business games and how to play them
6. Explain the behavioural pattern observed in 5 above on:
a. Moderate risk taking;
b. Goal setting;
c. Learning from feed back;
d. Taking personal responsibility;
e. Confidence and self reliance.
Content:
1. MAJOR COMPETENCIES REQUIRED FOR SUCCESSFUL
ENTREPRENEURSHIP
Competencies may be defined as:

_ a body of knowledge
_ a set of skills
_ a cluster of traits
Definitions
_ Knowledge consists of a set or body of information stored, which may

be recalled at an appropriate time.
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_ Skill is the ability to apply knowledge.
_ Trait is the aggregate of peculiar qualities or characteristics which

constitutes personal individuality.
The following lists provide examples of the competencies required for

setting up and managing a successful small business:
Knowledge
Possessing information on, or familiarity with:
• A business opportunity
• The market
• Customers
• Competitors
• Production processes
• Technical matters
• Business management
• Sources of assistance
Skills
May be of a technical or managerial nature. They relate to abilities to
perform tasks or functions in areas such as:
Technical Managerial
• Engineering • Marketing (including
selling)
• Computing • Financial management
• Carpentry • Organization
• Mechanics • Planning
• Catering • Leadership
Traits
Personal characteristics of successful entrepreneurs:
• Takes initiative
• Sees and acts on opportunities
• Is persistent
• Personally seeks information
• Is concerned for high quality
• Is committed to fulfilling contracts
• Is oriented to efficiency
• Plans systematically
• Solves problems in original ways
• Demonstrates self-confidence
• Takes calculated risks
• Is assertive
• Is persuasive
• Uses influential strategies
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2. KEY SUCCESS FACTORS IN SETTING UP A SMALL BUSINESS
How do I become an entrepreneur? How can I set up a successful

business? These are questions that people often ask. Unfortunately,
however, no foolproof answer or formula has been identified as yet.
Notwithstanding this, success – according to the literature,
observations and experience – depends on that peculiar ability to spot
opportunities in the market and act on them by organizing the
necessary resources to offer something attractive to customers and
taking the attendant risks. This is the essence of entrepreneurship in a
business context.
The crucial ingredient in the whole process is the entrepreneur. He/she

takes the initiative and also bears the risk in creating and/or organizing
an attractive offer of value to potential customers. The entrepreneur’s
ability to do this successfully depends on 4 factors, namely: Motivation,
Ability, Idea and Resources. The acronym – MAIR –may help you
remember these factors more easily. These are explained in turn.
Idea and Market

The important issue to be determined here is the viability of the idea,
project, product or service to be offered. In other words, does the idea,
product or service meet a need or want for which there are customers
who can afford it and are willing to use/purchase it in sufficient
quantities to make the whole project worthwhile (i.e. return a profit, in
a business context)? How is the proposition to be offered more
desirable or better than what is currently available and how will
competitors react?
Motivation and Determination

It is widely acknowledged that, to be successful, the individual or group
needs to be highly motivated and determined to set up the business to
make it succeed. This will be reflected, for example, in how persistent
they are in overcoming obstacles that might get in the way, how they
go about seeking information and how they act on opportunities.
Additional indicators might be their commitment and attitude to work
(quality, efficiency, long hours), previous attempts to set up a business
and the support of their family or partners.
Ability
Another important question is whether the individual or others involved
have particular abilities – these may be knowledge, technical or
managerial skills of relevance to the business or project. One way of
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making up for any lack in this area could be to team up with people
who have the necessary expertise, or buy it in.
Resources
Finally, the extent to which the person(s) involved can acquire or
organize resources in adequate measure will not only influence
performance but also, in some cases, whether they start at all.
Examples here include capital, cash, premises, materials, equipment
and labour. The availability of infrastructure (e.g. utilities like
electricity, telephone, roads) and support services might also be
important.
Business Plan
In order to turn the above 4 components into reality, a plan would be
required. In business, this is normally referred to as a Business Plan. On
the whole a business plan should show four main things, namely:
• Where you currently are with your idea, project or business;
• What you wish to do;
• How you propose to go about it; and
• That the project is worthwhile.
Organization and Management

The business then needs to actually start operating and, once this is
done, it would need to be managed. In setting up the business, or
before starting to operate, there may be legal or other statutory
requirements to be met. There may be a need to consult professionals
such as lawyers, accountants and/or staff from small business support
agencies for advice. The whole business and the process need to be
managed, and how well this is done – in particular, finding and dealing
with customers, management of cash and finances, marketing,
handling employees, dealing with suppliers, control systems – will all
affect performance.
Example of an Internet Café
Resources
_ Desktop PCs, all networked
_ Dial-up, broadband or wireless connection
_ Account with an Internet Service Provider (ISP) or satellite provider
_ Software to manage transactions and accounts
_ Desks and chairs
_ Air conditioners or fans
_ Staff to run/supervise
Ability
_ IT or computing knowledge and skills
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_ Able to install software and do routine maintenance and repair

_ Book-keeping and basic organization
_ Able to teach/train clients in basic computing and internet browsing
_ Familiarity with internet search engines and e-mail
Motivation and Determination

_ Able to work or operate long hours for 6 or7 days a week
_ Innovative
_ Able to use influential strategies
_ Problem-solver
_ Takes initiative
_ Concern for efficiency
Idea and Market

_ Viability: number and nature of internet or cyber cafés in the
neighbourhood or within, say, a 3 km radius – the fewer the better
_ Speed and prices vis-à-vis other cafés in area – should be competitive
_ Number of people living and/or working in the area – the more, the
better
_ Profile of people living or working in the area: low to middle income
best: – not so rich as to be able to afford their own PCs and internet
connection, but not so poor as not to be able to afford the service
_ Nice ambiance – with soft drinks and snacks for sale; and background
music in a well-ventilated room
_ Provision of ancillary services for sale, such as fax, printing,
photocopying, sale of diskettes, CD-ROMs, etc.
3. PERSONAL GOAL SETTING: LIVE YOUR LIFE YOUR WAY.

Goal setting is a powerful process for thinking about your ideal future,
and for motivating yourself to turn this vision of the future into reality.
The process of setting goals helps you choose where you want to go in
life. By knowing precisely what you want to achieve, you know where
you have to concentrate your efforts. You'll also quickly spot the
distractions that would otherwise lure you from your course. More than
this, properly-set goals can be incredibly motivating, and as you get
into the habit of setting and achieving goals, you'll find that your self-
confidence builds fast.
Achieving More with Focus
Goal setting techniques are used by top-level athletes, successful
business-people and achievers in all fields. They give you long-term
vision and short-term motivation. They focus your acquisition of
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knowledge and help you to organize your time and your resources so
that you can make the very most of your life.
By setting sharp, clearly defined goals, you can measure and take
pride in the achievement of those goals. You can see forward progress
in what might previously have seemed a long pointless grind. By
setting goals, you will also raise your self-confidence, as you recognize
your ability and competence in achieving the goals that you have set.
Starting to Set Personal Goals

Goals are set on a number of different levels: First you create your "big
picture" of what you want to do with your life, and what large-scale
goals you want to achieve. Second, you break these down into the
smaller and smaller targets that you must hit so that you reach your
lifetime goals. Finally, once you have your plan, you start working to
achieve it.
We start this process with your Lifetime Goals, and work down to the
things you can do today to start moving towards them.
Your Lifetime Goals

The first step in setting personal goals is to consider what you want to
achieve in your lifetime (or at least, by a time at least, say, 10 years in
the future) as setting Lifetime Goals gives you the overall perspective
that shapes all other aspects of your decision making.
To give a broad, balanced coverage of all important areas in your life,

try to set goals in some of these categories (or in categories of your
own, where these are important to you):
 Artistic:
Do you want to achieve any artistic goals? If so, what?
 Attitude:
Is any part of your mindset holding you back? Is there any part of
the way that you behave that upsets you? If so, set a goal to
improve your behavior or find a solution to the problem.
 Career:
What level do you want to reach in your career?
 Education:
Is there any knowledge you want to acquire in particular? What
information and skills will you need to achieve other goals?
 Family:
Do you want to be a parent? If so, how are you going to be a
good parent? How do you want to be seen by a partner or by
members of your extended family?
 Financial:
How much do you want to earn by what stage?
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 Physical:
Are there any athletic goals you want to achieve, or do you want
good health deep into old age? What steps are you going to take
to achieve this?
 Pleasure:
How do you want to enjoy yourself? - you should ensure that
some of your life is for you!
 Public Service:
Do you want to make the world a better place? If so, how?
Exercise:
Spend some time brainstorming these, and then select one goal in
each category that best reflects what you want to do. Then consider
streamlining and prioritizing again so that you have a small number of
really significant goals on which you can focus.
As you do this, make sure that the goals that you have set are ones
that you genuinely want to achieve, not ones that your parents, family,
or employers might want (if you have a partner, you probably want to
consider what he or she wants, however make sure you also remain
true to yourself!)
Starting to Achieve Your Lifetime Goals

Once you have set your lifetime goals, set a 25 year plan of smaller
goals that you should complete if you are to reach your lifetime plan.
Then set a 5 year plan, 1 year plan, 6 month plan, and 1 month plan of
progressively smaller goals that you should reach to achieve your
lifetime goals. Each of these should be based on the previous plan.
Then create a daily to-do list of things that you should do today to
work towards your lifetime goals. At an early stage these goals may be
to read books and gather information on the achievement of your
goals. This will help you to improve the quality and realism of your
goal setting.
Finally review your plans, and make sure that they fit the way in which
you want to live your life.
Staying on Course
Once you have decided your first set of plans, keep the process going
by reviewing and updating your to-do list on a daily basis. Periodically
review the longer term plans, and modify them to reflect your changing
priorities and experience.
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Goal Setting Tips

The following broad guidelines will help you to set effective goals:
 State each goal as a positive statement: Express your goals

positively - 'Execute this technique well' is a much better goal
than 'Don't make this stupid mistake.'
 Be precise: Set a precise goal, putting in dates, times and

amounts so that you can measure achievement. If you do this,
you will know exactly when you have achieved the goal, and can
take complete satisfaction from having achieved it.
 Set priorities: When you have several goals, give each a priority.
This helps you to avoid feeling overwhelmed by too many goals,
and helps to direct your attention to the most important ones.
 Write goals down: This crystallizes them and gives them more
force.
 Keep operational goals small: Keep the low-level goals you are
working towards small and achievable. If a goal is too large, then
it can seem that you are not making progress towards it. Keeping
goals small and incremental gives more opportunities for reward.
Derive today's goals from larger ones.
 Set performance goals, not outcome goals: You should take care
to set goals over which you have as much control as possible.
There is nothing more dispiriting than failing to achieve a
personal goal for reasons beyond your control. In business, these
could be bad business environments or unexpected effects of
government policy. In sport, for example, these reasons could
include poor judging, bad weather, injury, or just plain bad luck.
If you base your goals on personal performance, then you can
keep control over the achievement of your goals and draw
satisfaction from them.
 Set realistic goals: It is important to set goals that you can

achieve. All sorts of people (employers, parents, media, society)
can set unrealistic goals for you. They will often do this in
ignorance of your own desires and ambitions. Alternatively you
may set goals that are too high, because you may not appreciate
either the obstacles in the way, or understand quite how much
skill you need to develop to achieve a particular level of
performance.
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SMART Goals:
A useful way of making goals more powerful is to use the SMART
mnemonic (memory aid). While there are plenty of variants, SMART
usually stands for:
 S Specific
 M Measurable
 A Attainable
 R Relevant
 T Time-bound
For example, instead of having “to sail around the world” as a goal, it
is more powerful to say “To have completed my trip around the world
by December 31, 2015.” Obviously, this will only be attainable if a lot
of preparation has been completed beforehand!
Achieving Goals
When you have achieved a goal, take the time to enjoy the satisfaction
of having done so. Absorb the implications of the goal achievement,
and observe the progress you have made towards other goals. If the
goal was a significant one, reward yourself appropriately. All of these
help you build the self-confidence you deserve!
With the experience of having achieved this goal, review the rest of
your goal plans:
 If you achieved the goal too easily, make your next goals harder
 If the goal took a dispiriting length of time to achieve, make the
next goals a little easier
 If you learned something that would lead you to change other
goals, do so
 If you noticed a deficit in your skills despite achieving the goal,
decide whether to set goals to fix this.
Failure to meet goals does not matter much, as long as you learn from
it. You should feed lessons learned back into your goal setting program.
Remember too that your goals will change as you get older. Adjust
them regularly to reflect growth in your knowledge and experience,
and if goals do not hold any attraction any longer, then let them go.
Key points:
Goal setting is an important method of:
 Deciding what is important for you to achieve in your life;
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 Separating what is important from what is irrelevant, or a

distraction;
 Motivating yourself; and
 Building your self-confidence, based on successful achievement
of goals.
If you don't already set goals, do so and start now. As you make this
technique part of your life, you'll find your career accelerating, and
you'll wonder how you did without it!
4. GAMES AND LEARNING
“Games are… the most ancient and time-honored (sic) vehicle for
education. They are the original educational technology, the natural
one, having received the seal of approval of natural selection. We don’t
see mother lions lecturing cubs at the chalkboard; we don’t see senior
lions writing their memoirs for posterity. In the light of this, the
question, ‘Can games have educational value?’ becomes absurd. It is
not games but schools that are the newfangled notion, the untested
fad, the violator of tradition. Game-playing is a vital educational
function for any creature capable of learning.” (Crawford 1982)
Computer games are fast becoming a growing part of our culture; the
global market is worth billions of dollars. In 2002, the world market for
‘games and edutainment/reference software’ realized 16.9 billion US
dollars, with 3.3 million games consoles being sold in the UK alone
(ELSPA 2003). People of all ages, but most visibly children, play these
games, often dedicating long periods of time in total concentration.
Today, researchers, teachers and designers of learning resources are
beginning to ask how this powerful games medium might be used to
support learning. Rather than shutting the door of the school against
the computer game, there is now increasing interest in asking whether
computer games might be offering a powerful new resource to support
learning in this information age. There is a considerable current
thinking about the role of computer games in supporting learning
inside and out of school.
Researchers and commentators have attempted to understand the lure

of computer games. This has been characterized as a combination of
fantasy, challenge and curiosity, and a level of engagement described
as ‘flow’ where players become oblivious to distractions. Concern has
been expressed that this leads to a neglect of other activities, often
assumed to be automatically more worthy. Other authors see games
play as inherently valuable, leading to a development of a range of
skills and competences that may transfer to other social and work-
related uses of digital technologies.
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Nonetheless, teachers and parents have come to recognize that games

play can support valuable skill development, such as:
 strategic thinking
 planning
 communication
 application of numbers
 negotiating skills
 group decision-making
 data-handling.
There are two key themes common to the development of games for
education:- namely:
1. The desire to harness the motivational power of games in
order to ‘making learning fun’.
2. A belief that ‘learning through doing’ in games such as
simulations offers a powerful learning tool.
Software designed to support learning often borrows from game design

in an attempt to replicate the levels of engagement and harness this to
facilitate more traditional learning. Rather than aiming for an
experience that superficially resembles leisure-based ‘fun’ activities, or
one which attempts to conceal the educational purpose, it might be
argued that we should understand the deep structures of the games
play experience that contribute to ‘flow’ and build these into
environments designed to support learning. Researchers, reflecting on
how to design engaging learning experiences, draw on the above
definitions to propose eight characteristics as essential in games aimed
at teaching skills. These engagements are:
1. task that we can complete
2. ability to concentrate on task
3. task has clear goals
4. task provides immediate feedback
5. deep but effortless involvement (losing awareness of worry and
frustration of everyday activity)
6. exercising a sense of control over our actions
7. concern for self disappears during flow, but sense of self is
stronger after flow activity; and
8. sense of duration of time is altered.
CATEGORISING GAMES
As games have become more complex in terms of graphics,

complexity, interaction and narrative, so a variety of genres have
increasingly come to dominate the market. There is, however, no
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standard categorization of such games; different stakeholders in the

games industry, e.g. game outlets, developers, academics, web review
sites, use a taxonomy appropriate to their own audience. The system
employed by Herz (1997) which closely resembles that used by many
in the contemporary games industry presents these major categories
as:
 action games - these can be sub-categorized into shooting

games, ‘platform’ games (so called because the players’
characters move between onscreen platforms) and other types of
games that are reaction-based
 adventure games - in most adventure games, the player solves a
number of logic puzzles (with no time constraints) in order to
progress through some described virtual world
 fighting games - these involve fighting the computer-controlled
characters, or those controlled by other players
 puzzle games - such as Tetris
 role-playing games - where the human players assume the
characteristics of some person or creature type, eg elf or wizard
 simulations - where the player has to succeed within some
simplified recreation of a place or situation e.g. mayor of a city,
controlling financial outlay and building works
 sports games
 strategy games - such as commanding armies within recreations
of historical battles and wars.
Simulations are one of the most popular types of entrepreneurship

educational games. Cruickshank (1980, p76) defined a simulation
game as one “…in which participants are provided with a simulated
environment in which to play”, while defining simulations in their own
right as (p75) “the products that result when one creates the
appearance or effect of something else”. Laurel (1991) claims that:
“Educational simulations (as opposed to tutorial and drill-and-
practice forms) excel in that they represent experience as
opposed to information. Learning through direct experience has,
in many contexts, been demonstrated to be more effective and
enjoyable than learning through ‘information communicated as
facts’. Direct, multi-sensory representations have the capacity to
engage people intellectually as well as emotionally, to enhance
the contextual aspects of information, and to encourage
integrated, holistic responses.”
Simulation games possess several attractive properties:

 they can be designed in such a way that the player receives
instant feedback regarding the consequences of their actions
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 the game controller or designer can add, remove or adjust

various factors within the game
 compared to real-world training where materials and resources
are used, a simulation is often a much cheaper option
 they enable dangerous actions to be undertaken in a safe virtual
environment. For example, many people in the nuclear power
industry train extensively on PC-based simulations
In theory, as more powerful gaming technology and graphics

capabilities become standard, so simulation games can become more
realistic in terms of appearance and plausibility. However, this is not
necessarily the case; real-world situations often involve long periods of
inactivity, punctuated by periods of action, which does not map well
onto the ‘continuous flow’ and engagement of a game. The value of
collaborative learning, and the role of computers in promoting such
activity have been thoroughly researched. Whilst such collaboration
cannot be assumed, and children have to learn to work together,
computer-based activities can help in this process. How this
collaboration translates into a multiplayer gaming environment and
how these environments might be used to support learning, remain
some of the most interesting areas for potential further research and
development
LEARNING WITH GAMES IN/OUTSIDE SCHOOL
In line with developments in learning theory, research that has

examined children’s self-motivated computer games sees their
learning as a process of participation in practice rather than a process
of acquisition of facts or disconnected ‘pieces’ of information, i.e.
‘doing’ rather than ‘knowing’. This takes a variety of different forms.
1 Learning ‘Competencies’
Since games are often characterized by a trial-and-error approach to

overcoming challenges or obstacles, commentators have suggested
that these games can support the development of logical thinking and
problem solving skills (Ink-pen et al1995; Higgins 2000; White-bread
1997).
Much of this research has focused on ‘strategy or adventure games’,
which encourage students in exploratory quest-like scenarios with a
high degree of control over their progress (Malone 1983; Russell 1990).
2 Learning to learn – New Approaches to Collaboration
Research into the wider context of games play indicates that, contrary
to populist media opinion, games are often a facilitator to social,
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communication and peer activities. This has always been the case; in
the early years of computer gaming, a ‘playground culture’ of
discussing, swapping, buying and selling games emerged. Interactive
communities often develop around mainstream games with or without
developers’ encouragement, as enthusiasts create websites, discussion
boards and other communication environments to exchange
information, experiences and even resources related to a game.
3 Learning to Participate in Practice
Central to the argument about what video games offer to learning is

Gee’s assertion that semiotic domains are shared by groups of people,
described as ‘affinity groups’, sharing knowledge, skills, tools and
resources to form complex systems of interrelated parts. Within an
affinity group, learners gain resources from fellow members that equip
them to solve problems within, and perhaps outside of, the specific
domain - and this is evidence of ‘active learning’. For Gee, however the
crucial aspect of this practice is ‘critical learning’:
“The learner needs to learn not only how to understand and
produce meanings in a particular semiotic domain that are
recognizable to those affiliated with the domain, but, in addition,
how to think about the domain at a ‘meta’ level…(and) how to
produce meanings that, while recognizable, are seen as
somehow novel or unpredictable.” (p23)’
5. EXPLAIN THE FOLLOWING BEHAVIOURAL PATTERNS
5a. RISK TAKING
Risk taking is an integral part of business and life, but so few people
know how to manage it properly. The word risk has a slightly negative
connotation to it — it implies danger, tension, and possible loss. But
risk also has a positive side, the chance of hitting a big win, of getting
more on the back side than you invest on the front side.
All risks are not equal, however. Some risks are just plain dumb, and
you should never take them. But even in those cases, there’s usually
some emotional benefit. The city of Las Vegas (famous for its array of
casinos) thrives on such benefits. But what about intelligent risks?
Those are obviously the ones where the upside outweighs the
downside, at least probability-wise. You won’t find too many of those
risks in casinos.
Now we all know it’s generally a bad idea to take dumb risks, where
your expected outcome is negative and the potential upside is very
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limited. But guess what… It’s equally stupid to pass up an intelligent

risk, where your expected outcome is positive and the potential
downside is very limited.
The most intelligent risks are those where the potential downside is
limited, but the potential upside is virtually unlimited. Those are the
risks you should jump to take.
This planet has enough total and complete idiots. Please don’t be one
of them. You will lose a lot more by missing big opportunities (by not
taking risks) than you ever will from making mistakes.
Here are some examples of intelligent risk taking (indicating the worst
expected outcomes as well as the best):
 Ask someone out on a date (worst case downside = one-time

embarrassing rejection, best case upside = lifelong relationship
with your soul-mate)
 Ask for a raise or promotion (worst case downside = boss says
no, best case upside = permanent raise or promotion)
 Start a blog (worst case downside = waste some of your time,
best case upside = change your life and the world for the better)
 Join a new club (worst case downside = waste some of your time
and quit, best case upside = lifelong friendships plus a lot of
other benefits)
 Take a cooking class (worst case downside = waste a little time
and money, best case upside = become a permanently better
chef)
Most of us are pretty good at avoiding dumb risks, unless you happen
to be reading this from a jail cell. But we’re exceptionally lousy at
taking intelligent risks. The stupidest mistakes we make are errors of
omission.
The key to intelligent risk-taking is to look far enough ahead. When

thinking about personal growth, I don’t just think a year ahead or five
years ahead. I think across the span of my whole lifetime (sometimes
even thinking beyond the grave… seriously). I ask myself, “What
difference might this make over the span of the next several
decades?” Over that time span even small changes you might make
today can create huge long-term payoffs. And the decisions to do
nothing today means you are automatically denying yourself any long-
term benefits. Doing nothing isn’t neutral. Doing nothing is way, way
negative.
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This is one of the reasons it’s so important to install good habits. In

the short-term, it’s a struggle, often a painful one. We have to deal
with disappointment again and again. We fall flat on our faces, dust
ourselves off, and throw ourselves into the ring anew, only to be
pummeled once again. And we use that same tired mantra, “This time
it will be different!” — a mantra that fails 19 times out of 20.
What keeps me from getting discouraged when my failures outnumber

my successes is to keep thinking long-term. I often must endure a lot
of failures to hit the next big breakthrough. So I just plow through
those failures as fast as possible. It’s like a conveyor belt — there’s a
new success on that belt somewhere ahead, and the faster the belt
moves, the sooner it will arrive.
It’s amazing how much long-term difference just a small change you
make today can make. Just a little more self-discipline, a little more
courage, a little more persistence, a little more enthusiasm —
these can produce huge gains in the long run.
Do not give up during the flat period!
The flat period is the hardest because you’re working hard and getting
very little to show for it. Maybe you keep working on your social skills
but can’t seem to get a date to save your life. Maybe you keep
working on your internet skills but still can’t figure out how to make
your own web site. Maybe you start a new business and just can’t
seem to get anything going.
That’s life. Give yourself permission to work hard and have little to
show for it, as long as you intelligently hold a positive long-term
outlook.
Short-term thinking and risk aversion dominate this planet. A person

like me who embraces intelligent risk and thinks decades ahead
doesn’t fit in very well here. That was a bit of a problem for me when I
was younger, but now I just embrace it. It’s simply who I am. I get all
the support I need from my connection to my purpose and from feeling
a sense that I’m working to serve the highest good of all. The whole
world could turn against me, and it wouldn’t make me want to give up.
It would probably just inflame me more. I never get discouraged
because I believe my approach to life will produce some amazing
results in the long run. It’s only a matter of time.
Love is more powerful than fear. I overcome fear of risk by tapping

ever more deeply into what I love most. The thought of taking a risk
produces excitement instead of anxiety.
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Find an intelligent risk you can take today. Most likely it won’t pan out.
But what if it does? Celebrate either way because no matter what the
outcome, you’ll gain courage just by making the attempt.
5b. GOAL SETTING
The car is packed and you're ready to go, your first ever cross-country
trip. From the Garden City of Port Harcourt to the rolling hills of Jos
through Benin, Akure, Lokoja, Abuja, you're going to see it all. You put
the car in gear and off you go. First stop, the ancient city of Benin of
Fame and on .. and on till you reach destination.
A little while into the trip you need to check the map because you've
reached an intersection you're not familiar with. You panic for a
moment because you realize you've forgotten your map.
But you say the heck with it because you know where you're going. You
take a right, change the radio station and keep on going.
Unfortunately, you never reach your destination.
Too many of us treat goal setting the same way. We dream about
where we want to go, but we don't have a map to get there.
What is a map? In essence, where is the guide in written word for

getting to the destination from where we are now?
What is the difference between a dream and a goal? Once again, the
written word.
Goal setting however is more than simply scribbling down some ideas
on a piece of paper. Our goals need to be complete and focused, much
like a road map, and that is the purpose behind the rest of this article.
If you follow the 7 goal setting steps I've outlined in this article you will
be well on your way to becoming an expert in building the road maps
to your goals.
1. Make sure the goal you are working for is something you really want,
not just something that sounds good.
When setting goals it is very important to remember that your goals

must be consistent with your values.
2. A goal can not contradict any of your other goals.
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For example, you can't buy a =N=7,500,000.00 house if your income

goal is only =N=500,000.00 per year. This is called non-integrated
thinking and will sabotage all of the hard work you put into your goals.
Non-integrated thinking can also hamper your everyday thoughts as
well. We should continually strive to eliminate contradictory ideas from
our thinking
3. Develop goals in the 6 areas of life:
Family and Home Financial and Career

Spiritual and Ethical Physical and Health
Social and Cultural Mental and Educational
Setting goals in each area of life will ensure a more balanced life as
you begin to examine and change the fundamentals of everyday living.
Setting goals in each area of life also helps in eliminating the non-
integrated thinking we talked about in the 2nd step.
4. Write your goal in the positive instead of the negative.
Work for what you want, not for what you want to leave behind. Part of
the reason why we write down and examine our goals is to create a set
of instructions for our subconscious mind to carry out. Your
subconscious mind is a very efficient tool, it can not determine right
from wrong and it does not judge. It's only function is to carry out its
instructions. The more positive instructions you give it, the more
positive results you will get.
Thinking positively in everyday life will also help in your growth as a

human being. Don't limit it to goal setting.
5. Write your goal out in complete detail.
Instead of writing "A new home," write "A 4,000 square foot
contemporary with 4 bedrooms and 3 baths and a view of the
mountain on 20 acres of land.
Once again we are giving the subconscious mind a detailed set of

instructions to work on. The more information you give it, the more
clear the final outcome becomes. The more precise the outcome, the
more efficient the subconscious mind can become.
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Can you close your eyes and visualize the home I described above?
Walk around the house. Stand on the porch off the master bedroom
and see the mountain. Look down at the garden full of tomatoes, green
beans and cucumbers. And off to the right is the other garden full of a
sunflower, carnations and roses. Can you see it? So can your
subconscious mind.
6. By all means, make sure your goal is high enough.
Shoot for the moon; if you miss you'll still be in the stars. If I never
make it, everything I do to reach that goal will make me a better
person. If I make it, but don't go as high as planned, then I am still
among the top in my field in the nation. Shoot for the moon!
7. This is the most important, write down your goals.
Writing down your goals creates the roadmap to your success.

Although just the act of writing them down can set the process in
motion, it is also extremely important to review your goals frequently.
Remember, the more focused you are on your goals the more likely
you are to accomplish them.
Sometimes we realize we have to revise a goal as circumstances and

other goals change. If you need to change a goal do not consider it a
failure, consider it a victory as you had the insight to realize something
was different.
So your goals are written down. Now what?
First of all, unless someone is critical to helping you achieve your

goal(s), do not freely share your goals with others. The negative
attitude from friends, family and neighbours can drag you down
quickly. It's very important that your self-talk (the thoughts in your
head) are positive.
Reviewing your goals daily is a crucial part of your success and must
become part of your routine. Each morning when you wake up read
your list of goals that are written in the positive. Visualize the
completed goal, see the new home, smell the leather seats in your new
car, feel the cold hard cash in your hands. Then each night, right
before you go to bed, repeat the process. This process will start both
your subconscious and conscious mind on working towards the goal.
This will also begin to replace any of the negative self-talk you may
have and replace it with positive self-talk.
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Every time you make a decision during the day, ask yourself this
question, "Does it take me closer to, or further from my goal." If the
answer is "closer to," then you've made the right decision. If the
answer is "further from," well, you know what to do. Remember the
‘straight line law – the shortest distance between two pints’.
If you follow this process everyday you will be on your way to achieving
unlimited success in every aspect of your life.
5c. LEARNING FROM FEEDBACK
We are all inundated with feedback continually. We could all be

learning from everything that happens. Most of us only acknowledge
delivered feedback and fail to discover the abundance of other useful
feedback. We don't see what we're missing or how to grow, change
and learn from our latest experience.
Delivered feedback comes in two flavors: objective and subjective. We

cannot argue with objective feedback. Formal systems of evaluation
are based on this. All the statistics in professional sports, scores in
computer games and grades on college transcripts -- deliver objective
feedback.
We can argue with subjective feedback. It's not based on fact. It's
subject to interpretation and frames of reference. Informal learning and
relationships are based on delivering this feedback. Referees, juries
and critics all make judgment calls about our conduct. We get told we
are out of bounds, guilty or breaking the rules. We also receive word
that we are exceptional, valuable or likeable. It depends on who says it,
how they see us, which mood they are in at the moment and what
we've done to our relationship with them.
Discovered feedback also includes objective and subjective varieties.

We cannot argue with what happens, what works or how things turn
out. Outcomes provide objective feedback if we discover the results
that occur, the effect of our actions or the fallout from our efforts. We
fail to discover objective feedback if we rely on fragile or fortressed
cognitive structures. We then talk ourselves out of considering the
bigger picture and long range consequences.
When we discover subjective feedback, we are interpreting our

selective perceptions. We are aware we are framing the evidence,
skewing the data and biasing the diagnosis. We discover how we are
focusing, spinning or storying the evidence. We use a post modern
outlook and appreciate the subjective nature of everything we
perceive. We adopt a worldview where "we reap what we sow" and
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"what goes around, comes around". We look at the outside world as a

reflection of our inner psychological condition. We discover countless
ways to grow from adversity, change our outlooks and learn from the
evidence of our state of mind.
Discovery systems support the use of discovered feedback. Where a

delivery system is saying: "now hear this!", a discovery system asks:
"how is this useful?". Without being told what to think, learners think
for themselves and serve as the best judge of their experience. They
learn from how they are treated, framed and allowed to deviate the
norm. They discover feedback in everything.
5d. PERSONAL RESPONSIBILITY
Responsibility is not a burden, it's a blessing
When we take responsibility, we admit we are the ones responsible for

the choices we make. We, not other people or events, are responsible
for the way we think and feel. It is our life, and we are in charge of it.
We are free to enjoy it or disdain it. No, we are not responsible for all
that happens to us, but we are responsible for how we think, feel, and
act when they happen.
Why did God make us so fleet-footed? Some would argue it is to allow

us to dodge, duck, and run from responsibility! Why would anyone
want to do that? Well, many people associate responsibility with duty
and obligations, which, in turn, are thought of as burdens. But personal
responsibility is not a burden, it is a blessing. This becomes clear when
we understand that personal responsibility is nothing other than the
freedom to create our own lives. Yes, responsibility is equated with
freedom and power. Once we awaken to this fact, we become liberated
and empowered. Once we become aware of this truth, we shed our
victim mentality and gain the power to transform ourselves.
Let's get personal and talk about you for a moment. Are you perfectly
happy with the way things are at this time, or do you wish things were
better? Chances are you are neither perfectly happy nor completely
unhappy, for most of us lie somewhere between both extremes.
However, if you're not totally satisfied, what are you doing about it? If
you continue to do the same things, everything will remain the same.
Nothing will change until you do.
If a change in your life is warranted, why not begin by recognizing that

your present situation is not the result of your genes, parents,
education, job, luck, timing, health, or environment. Rather, it is the
choices you have made and the actions you have taken that have
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brought you where you are today. Change your choices and actions
and you will change the results that follow. This understanding is the
first step in personal transformation. The second step is the action that
follows, for as Dietrich Bonhoffer (1906 ~ 1945) wrote, "Action springs
not from thought, but from a readiness for responsibility."
What action should we take? Start by taking a personal inventory. That

is, examine your life to learn the extent that you are either already
taking responsibility or evading it. This is best done by asking yourself
a series of questions and writing the answers for later study. Here's
what I mean. Do you ever say to yourself or others any of the
following? Life is so unfair. I'm unlucky. No one wants to help me. It's
not my fault that I'm the way I am. Life is an endless struggle; there
are too many burdens to bear. Terrible things are always happening to
me. My parents (spouse, friends, co-workers, boss, health, the weather,
or the political situation) make me depressed (angry or frustrated). I
feel overwhelmed and helpless. Some people get all the breaks; I'm
just unfortunate. I'm sick and tired of being sick and tired. There's
nothing I can do; it's just the way the world is. I'm unsuccessful
because of the prejudice (age discrimination, sexism, jealousy, hatred,
stupidity) of others. I would be successful if it weren't for the idiots
holding me back. Self-help books, positive thinking, or the advice of
others can't help me.
Can you see where I'm going with this? All the above thoughts express
the mindset of a self made victim. Instead of taking personal
responsibility and taking charge of one's life, that kind of thinking is
used to blame others or life for one's own failures. That type of thinking
is dead-end thinking; and self-defeating thinking. With these thoughts
in mind, and tongue in cheek, Ambrose Bierce (1842 ~ 1914) defines
responsibility in his "The Devil's Dictionary" as follows:
"RESPONSIBILITY, n. A detachable burden easily shifted to the

shoulders of God, Fate, Fortune, Luck or one's neighbor. In the days of
astrology it was customary to unload it upon a star."
Yes, it's easy to shift the responsibility and blame others or events. But
what good is that? All it does is keep us in a rut. We cannot make any
real progress until we admit to ourselves, "Only I can hold myself back.
Only I can stand in my own way. Only I can help myself. Only I can take
personal responsibility. Only I can transform myself from a victim of
circumstances to a reasoning, choice-making, action oriented person.
Only I can make the decision to stop acting like a victim and start
taking charge of my life."
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Let me end by saying, all this emphasis on making the right choices
and accepting personal responsibility is for your benefit only. That is,
use these ideas to improve yourself, but not to judge others. You can
never enter the mind, heart, and body of another, so you are unaware
of the reasons for their failures. Not everyone is as ready as you are to
change. That's why it is written in the Talmud (Rabbinical writings of
the 1 ~ 6 centuries AD), "A man may not be responsible for his actions
in an hour of tribulation and pain." You have enough problems already;
don't add to them by endlessly complaining, for that only entrenches
them deeper into your life. Rather, look for the good, appreciate it, and
take responsibility by making the most of what you have. Happiness is
a choice, just like misery is; we all have the responsibility to make the
right choices. We owe it to ourselves to do so.
5e. DEVELOPING CONFIDENCE AND SELF RELIANCE IN A CHILD
It’s so easy. We all do it from time to time. We love them so much. We

just want to protect our children from anything that might harm them.
So we reach out our arm and gather them in. We do their chores for
them so they can enjoy a few more moments of play. But these choices
carry consequences. When you shelter your children or do what they
can do for themselves they become overly dependent. Worse, they
don’t challenge themselves or develop self-confidence.
Learning self-reliance and independence comes early. But it doesn’t

happen without your help. You need to support your children by
teaching them to be independent. In this article you’ll learn how to
encourage your children’s independence; how and when to let them do
things on their own; what to do when they need help; and what to do
when things go wrong.
Let’s Meet Julie
Julie is six years old. She’s shy and indecisive and doesn’t have any
close friends. Julie’s teacher, Mrs. Sterling, often keeps Julie company
at school and gives her extra help. Mrs. Sterling doesn’t mind. Julie is
such a quiet and well-behaved girl.
Then, at a parent-teacher meeting, Mrs. Sterling mentions Julie’s

behavior to her parents. She wasn’t always that way, they say. Julie
was a wild baby and got into everything. At the time, Julie’s parents
were concerned for her safety so they kept Julie in her playpen, put up
gates throughout the house and even put her on a leash at times. For
her safety, they added.
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Eventually, Julie grew out of her wanderlust and became a polite little
girl. But maybe we overdid it, say Julie’s parents. Now she isn’t
interested in doing anything on her own. She just waits for us to advise
her.
Mrs. Sterling suggests that they give Julie a light chore—something she
could easily accomplish. Maybe that will help Julie feel like she’s in
charge and already has permission to do a good job on her own. Julie’s
parents agree.
In a few weeks, Mrs. Sterling notices that Julie is seeking less help and
spending longer periods with the other children. Then one day in a
burst of pride Julie tells Mrs. Sterling the proper way to empty a
dishwasher and put away the dishes. Mrs. Sterling thanks Julie for the
lesson and smiles as Julie runs off to play with her new friends.
Now let’s take a look at how you can teach your children
independence, self-reliance and the joy of confidence.
Encouragement
Parents need to support their children in their natural quest for
independence. A great way to do this is with chores. Most kids are in a
hurry to grow up; helping out around the house teaches them
responsibilities and shows them they can make a difference through
their actions.
But be careful. Your child can sense if you’re concerned about their
abilities. Let them know that it’s a big help to have them involved and
give them jobs they can accomplish. If you’re apprehensive about their
safety or performance give them another job.
Allowance
Children who are allowed to do things on their own develop self-
reliance. Early on, leave your child alone for small periods. They’ll learn
that they’re safe and can do things without you in the same room.
Later, friendships teach them to cope in different situations. Chores,
hobbies and homework develop independence, too. Here are some
methods to help your children succeed on their own.
• Model self-reliance in your own behavior.
• Show them step-by-step how a project is done.
• Make sure they know the goal so they go in the right direction.
• Make the project fun! Time it. Do it backwards. Dance. Make a game
out of it.
• Set timelines for a project, but let your children complete it their own
way.
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• Let them do the job in parts so they succeed each time they work on
it.
• Let them fail. Let your children try things their way and learn from
failure.
• When they forget to do a chore, show them the consequences, but
don’t do the job for them.
Support
Knowing when to step in and help your child with a project can be
challenging. Here are some guidelines, but observe how your children
solve problems and support them appropriately.
• Step in to support your children when their approach is unsafe,
unhealthy or disruptive.
• In general, make yourself available to help, but encourage them to
work through any snags they hit on their own.
• If you do step in, emphasize what’s working and then suggest ways
to do the job better, or consider doing the job together.
• If the job is done well enough… leave well enough alone. Perfection is
not the aim. Unless the work needs to be corrected for very good
reasons congratulate your children on their efforts. And praise them
often.
Learn from Mistakes

Part of self-reliance means learning from mistakes. Here are some tips
to help your children keep going when things go wrong.
• Tell them everyone makes mistakes.
• Tell them it’s the effort that counts.
• Tell them you love them no matter what.
• Point out what they did right.
• Ask them how they could do it differently.
• Encourage them to do the job using their new approach.
Protecting your children from harm is vital, but it’s also important to
allow them to explore, to engage in life and even to fail. That’s how
they learn self-reliance. In the long run, if children aren’t taught
independence they lack self-confidence—and that’s very difficult to
learn later on.
Encourage your children’s independence. Teach them how to do things

on their own and support them as they learn. Perhaps one of the
greatest gifts you can teach your children is to learn from their
mistakes and to fill their lives with the confidence and self-reliance
necessary to succeed.
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TOPIC 7:
KNOW THE MOTIVATIONAL PATTERN OF ENTREPRENEURS
INTRODUCTION:
Motivation and the role it plays in the conduct of entrepreneurship and
how it positively affect the entrepreneur is very significant to the study
and practice of entrepreneurship. In this section efforts is made to
highlight the assessment of these motivational patterns in relation to
the process of entrepreneurial practice. Students should be able to
explain motivation, objectives, merits and demerits as well as carryout
analysis on the motive strength from Thematic Appreciation Test (TAT)
scores. Also they should be able to explain the spirit of Achievement
Motivation Test, (AMT)

1. Define motivation;
2. List the objectives of motivation;
3. Identify barriers to motivation and achievement;
4. Explain Thematic Appreciation Test (TAT) scores;
5. Explain how to analyze motive strength from TAT score;
6. Explain the spirit of Achievement Motivation Test (AMT).
CONTENT:
1. MOTIVATION
Motivation starts with the desire to be free, to be free from

dependency on others, freedom to live the lifestyle we dream of,
freedom to explore our ideas. Total freedom is not possible or
desirable, but the struggle to achieve that ideal is the basis for
motivation.
Motivation is built on three basic elements:
1. Motivation starts with a need, vision, dream or desire to achieve

the seemingly impossible. Creativity is associated with ideas,
projects and goals, which can be considered a path to freedom.
2. Developing a love-to-learn lifestyle, become involved with risky

ventures and continually seek new opportunities. Success is the
result of learning what works and what does not work.
3. Develop the ability to overcome barriers and to bounce back from

discouragement or failure. Achievers learn to tolerate the agony
of failure. In any worthwhile endeavor, barriers and failure will be
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there. Bouncing back requires creative thinking as it is a learning

process. In addition, bouncing back requires starting again at
square one.
A loss of any one part and motivation is on the rocks. For example:
• If you like to be creative and love to learn but cannot face up to

failure, you will not go back and try again. Persistence is
associated with bouncing back.
• If you have a unique idea but don’t like taking risks, idea is all you
will ever have.
• There must be something in your life that turns you on. You can
start by analyzing the lifestyle of your dreams. Remember,
money is not a goal; it is a reward for achieving a goal.
7 Rules of Motivation
1 Set a major goal, but follow a path. The path has mini goals that
go in many directions. When you learn to succeed at mini goals,
you will be motivated to challenge grand goals.
2 Finish what you start. A half finished project is of no use to

anyone. Quitting is a habit. Develop the habit of finishing self-
motivated projects.
3 Socialize with others of similar interest. Mutual support is

motivating. We will develop the attitudes of our five best friends.
If they are losers, we will be a loser. If they are winners, we will
be a winner. To be a cowboy we must associate with cowboys.
4 Learn how to learn. Dependency on others for knowledge supports

the habit of procrastination. Man has the ability to learn without
instructors. In fact, when we learn the art of self-education we
will find, if not create, opportunity to find success beyond our
wildest dreams.
5 Harmonize natural talent with interest that motivates. Natural

talent creates motivation, motivation creates persistence and
persistence gets the job done.
6 Increase knowledge on subjects that inspires. The more we know

about a subject, the more we want to learn about it. A self-
propelled upward spiral develops.
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7 Take risk. Failure and bouncing back are elements of motivation.

Failure is a learning tool. No one has ever succeeded at anything
worthwhile without a string of failures.
Creating a Vision
When you begin the process of strategic planning, visioning comes

first. When visioning the change, ask yourself, "What is our preferred
future?" and be sure to:
 Draw on the beliefs, mission, and environment of the

organization.
 Describe what you want to see in the future.
 Be specific to each organization.
 Be positive and inspiring.
 Do not assume that the system will have the same framework as
it does today.
 Be open to dramatic modifications to current organization,
methodology, teaching techniques, facilities, etc.
Key Components for Your Vision
Incorporate Your Beliefs

Your vision must be encompassed by your beliefs. i.e.
 Your beliefs must meet your organizational goals as well as

community goals.
 Your beliefs are a statement of your values.
 Your beliefs are a public/visible declaration of your expected
outcomes.
 Your beliefs must be precise and practical.
 Your beliefs will guide the actions of all involved.
 Your beliefs reflect the knowledge, philosophy, and actions of all.
 Your beliefs are a key component of strategic planning.
Create a Mission Statement

Once you have clarified your beliefs, build on them to define your
mission statement which is a statement of purpose and function.
 Your mission statement draws on your belief statements.

 Your mission statement must be future oriented and portray your
organization as it will be, as if it already exists.
 Your mission statement must focus on one common purpose.
 Your mission statement must be specific to the organization, not
generic.
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 Your mission statement must be a short statement, not more

than one or two sentences.
Here is an example mission statement: "By providing quality

education, we empower individuals to become caring, competent,
responsible citizens who value education as a lifelong process."
Benefits of Visioning
The process and outcomes of visioning may seem vague and
superfluous. The long-term benefits are substantial, however.
Visioning:
 Breaks you out of boundary thinking.

 Provides continuity and avoids the stutter effect of planning fits
and starts.
 Identifies direction and purpose.
 Alerts stakeholders to needed change.
 Promotes interest and commitment.
 Promotes laser-like focus.
 Encourages openness to unique and creative solutions.
 Encourages and builds confidence.
 Builds loyalty through involvement (ownership).
 Results in efficiency and productivity.
Vision Killers
As you engage in the visioning process, be alert to the following vision
killers:
 Tradition
 Fear of ridicule
 Stereotypes of people, conditions, roles and governing councils
 Complacency of some stakeholders
 Fatigued leaders
 Short-term thinking
 "Nay-Sayers"
Exercise in Creating a Vision

Take the time to assimilate this information, use the following example
to exercise your planning techniques:
It is five years from today’s date and you have, marvelously enough,
created your most desirable district. Now it is your job, as a team, to
describe it - as if you were able to see it, realistically around you.
Respond to the following questions:
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 How has the job market changed?

 What have we done to prepare our students for success in this
world?
 What do we (including teachers, parents, and local government
administrators) spend most of our time doing?
 How are our meetings structured?
Intrinsic motivation is when people engage in an activity, without

obvious external incentives, such as a hobby.
Intrinsic motivation has been studied by educational psychologists and
found it to be associated with high achievement and enjoyment.
There is currently no universal theory to explain the origin or elements
of intrinsic motivation, thus it is thought that people are more likely to
be intrinsically motivated if they:
 Attribute their results to internal factors that they can control
(e.g. the amount of effort they put in an act),
 Believe they can be effective agents in reaching desired goals
(i.e. the results are not determined by dumb luck),
 Are interested in mastering a task, rather than mindless acts to
achieve good results.
Note that the idea of reward for achievement is absent; since rewards
are an extrinsic factor.
In knowledge-sharing communities and organizations, people often cite

altruistic reasons for their participation, including contributing to a
common good, a moral obligation to the group, mentorship or 'giving
back'. In work environments, money may provide a more powerful
extrinsic factor than the intrinsic motivation provided by an enjoyable
workplace.
The most obvious form of motivation is coercion, where the avoidance

of pain or other negative consequences has an immediate effect. While
coercion is considered morally reprehensible in many philosophies, it is
widely practiced on lots of emploees by their employers. Critics of
modern capitalism charge that without social safety networks, non-
living wages are inevitable. Successful coercion sometimes can take
priority over other types of motivation. Self-coercion is rarely
substantially negative (typically only negative in the sense that it
avoids a positive, such as forgoing an expensive dinner or a period of
relaxation), however it is interesting in that it illustrates how lower
levels of motivation may be sometimes tweaked to satisfy higher ones.
The self-control of motivation is increasingly understood as a subset of

emotional intelligence; a person may be highly intelligent according to
a more conservative definition, as measured by standard intelligence
tests, yet unmotivated to dedicate this intelligence to certain tasks.
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Drives and desires can be described as a deficiency or need that

activates behaviour that is aimed at a goal or an incentive. These are
thought to originate within the individual and may not require external
stimuli to encourage the behaviour. Basic drives could be sparked by
deficiencies such as hunger, which motivates a person to seek food;
whereas more subtle drives might be the desire for praise and
approval, which motivates a person to behave in a manner pleasing to
others.
By contrast, the role of extrinsic rewards and stimuli can be seen in the
example of training animals by giving them treats when they perform a
trick correctly. The treat motivates the animals to perform the trick
consistently, even later when the treat is removed from the process.
Drive Reduction Theories

There are a number of drive theories. The Drive Reduction Theory
grows out of the concept that we have certain biological needs, such
as hunger. As time passes the strength of the drive increases as it is
not satisfied. Then as we satisfy that drive by fulfilling its desire, such
as eating, the drive's strength is reduced. It is based on the theories of
Freud and the idea of feedback control systems, such as a thermostat.
There are several problems, however, that leave the validity of the
Drive Reduction Theory open for debate. The first problem is that it
does not explain how Secondary Reinforcers reduce drive. For example,
money and the desire to succeed in the business sense does not
satisfy any biological need. Secondly, if the drive reduction theory held
true we would not be able to explain how a hungry human being can
prepare a meal without eating the food before they finished cooking it.
Achievement Theory
David McClelland’s achievement motivation theory envisages that a
person has need for three things but people differ in degree in which
the various needs influence their behavior: Need for achievement,
Need for power, and Need for affiliation.
Entrepreneurs are usually highly motivated individuals who seem to
enjoy work regardless of what they do. Most people are able to
accomplish goals which are similar to what they want to do. However,
entrepreneurs are able to motivate themselves to produce high output
in the work they have to do.
Thematic Appreciation Test (TAT) scores;

The Thematic Appreciation Test (TAT) is similar to the Rorschach inkblot
test. Subjects are shown pictures and asked to tell a story based on
what they see. Both these projective assessment tools elicit important
information about underlying psychological fears and needs. The TAT
was developed in 1935 by Morgan and Murray. Ironically, it was initially
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used in a study of normal personalities done at Harvard Psychological

Clinic.
The test comprises 31 cards. One card is blank and the other thirty
include blurred but emotionally powerful (or even disturbing)
photographs and drawings. Originally, Murray came up with only 20
cards which he divided to three groups: B (to be shown to Boys Only),
G (Girls Only) and M-or-F (both sexes).
The cards expound on universal themes. Card 2, for instance, depicts a

country scene. A man is toiling in the background, tilling the field; a
woman partly obscures him, carrying books; an old woman stands idly
by and watches them both. Card 3BM is dominated by a couch against
which is propped a little boy, his head resting on his right arm, a
revolver by his side, on the floor.
Card 6GF again features a sofa. A young woman occupies it. Her
attention is riveted by a pipe-smoking older man who is talking to her.
She is looking back at him over her shoulder, so we don't have a clear
view of her face. Another generic young woman appears in card 12F.
But this time, she is juxtaposed against a mildly menacing, grimacing
old woman, whose head is covered with a shawl. Men and boys seem
to be permanently stressed and dysphoric in the TAT. Card 13MF, for
instance, shows a young lad, his lowered head buried in his arm. A
woman is bedridden across the room.
With the advent of objective tests, such as the MMPI and the MCMI,
projective tests such as the TAT have lost their clout and luster. Today,
the TAT is administered infrequently. Modern examiners use 20 cards or
less and select them according to their "intuition" as to the patient's
problem areas. In other words, the diagnostician first decides what
may be wrong with the patient and only then chooses which cards will
be shown in the test! Administered this way, the TAT tends to become
a self-fulfilling prophecy and of little diagnostic value.
The patient's reactions (in the form of brief narratives) are recorded by
the tester verbatim. Some examiners prompt the patient to describe
the aftermath or outcomes of the stories, but this is a controversial
practice.
The TAT is scored and interpreted simultaneously. Murray suggested to
identify the hero of each narrative (the figure representing the patient);
the inner states and needs of the patient, derived from his or her
choices of activities or gratifications; what Murray calls the "press", the
hero's environment which imposes constraints on the hero's needs and
operations; and the thema, or the motivations developed by the hero
in response to all of the above.
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Clearly, the TAT is open to almost any interpretative system which

emphasizes inner states, motivations, and needs. Indeed, many
schools of psychology have their own TAT exegetic schemes. Thus, the
TAT may be teaching us more about psychology and psychologists than
it does about their patients!
How to analyze motive strength from TAT score;

Thematic Apperception Test is quite similar to Story Sequence Analysis.
The subject is shown a series of 31 ambiguous photographs and asked
to write a story for each photograph describing what happened, how
the photographed people feel, and how things will end. The story is
analyzed for recurrent motivational themes that are thought to reflect
the motivation of the author (McClelland and Alschuler, 1971; Rossini
and Moretti, 1997).
Survey
Most Achievement Motivation surveys are constructed in the same
manner. They ask a number of questions designed to explore certain
behavioral characteristics. The surveys have related groups (or
components) of questions that are scattered throughout the
questionnaire. The questions may ask the respondents their likes and
dislikes of various topics. Other questions may ask respondents to rate
themselves or their abilities. By having related groups of questions, the
survey can ask the respondent the same question in different
manners and compare how the student answered each time. In this
manner the consistency of the respondents answers can be checked.
The answers to the questions are presented as a Likert – type scale.
Typically, there are between five and seven answers the respondent
can select (Chiu, 1997; Jagacinski & Duda, 2001; Sagie, 1993; Wagner,
Powers & Irwin, 1985).
Summary
Some individuals have a need to achieve. They want to be successful

at
whatever they attempt. They have a high attitude toward success and
work hard to ensure they are successful. If they are intrinsically
motivated, they participate in the activity for the sake of learning that
activity or improving their ability at that activity. If they are
extrinsically motivated, they participate in the activity with the
expectation of reward (Eskeles-Gottfried, Fleming, and Gottfried,
1998).
Other individuals have a fear of failure. They will avoid failure at all
costs. Usually the individual will not even attempt the task. In this
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manner they save face with their pears. If the task is not attempted, it
cannot be failed (Atkinson and Feather, 1966; Atkinson, 1974).
The probability of success also has bearing on an individual’s
achievement motivation. An individual may not need to put forth much
effort to accomplish an easy task. A difficult task may be thought to
take too much effort. Tasks of moderate difficulty seem to be preferred
by individuals with high achievement motivation. An individual’s
perception of the outcome also affects their achievement motivation. If
the outcome of a task is not viewed as unimportant, little or no effort
may be made in attempting the task.
Achievement Motivation on the Job: Key Factor in Professional Success.
The professional motivation test (Achievement motivation test – AMT)

is a written test enabling the differentiated measurement of
professional achievement motivation, one of the most important
aspects of professional success. With this instrument, a diagnostic
profile is drawn up dealing with 17 different aspects of achievement
motivation, including confidence, perseverance and goal orientation.
An evaluation in the form of a standardized total value is also
performed.
The diagnostic results of the test can be used for personnel selection
purposes as well as for identifying individual training needs as part of
personnel development. AMT can be successfully applied where a large
number of applicants are concerned, for example for the selection of
managerial staff, industrial workers, and for the founders of new
businesses.
AMT has been developed in many years. It consists of 51 career-related

questions with excellent statistical values guaranteeing psychometric
quality. The level of acceptance among participants is high. And, taking
just 10 minutes (approx.) to complete, AMT is very economical in terms
of time requirement. The test can be carried out either in paper-and-
pencil format, or on the internet.
As well the graphic presentation of results in a net chart, also a text

feedback especially for individual assessment is available. AMT has a
broad norm basis of people from a wide cross-section of professions.
Ongoing renorming processes and the creation of customer-specific
norms enable broader application to meet individual needs.
AMT-B is a target group-specific further development of AMT for

measuring the achievement motivation of trainees and professionally
inexperienced employees. The item format and the content are
specifically intended for applicant groups which have no previous work
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experience. Brief descriptions of situations illustrated by photographs

make it easier for applicants to work through the test, creating an
appealing and readily accepted test. Validation work has shown that
using AMT-B significantly increases the predictive validity of classical
test batteries for trainees. Norms specific to trainees in industrial and
commercial branches are available.
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NATIONAL BOARD FOR TECHNICAL EDUCATION

ENTREPRENEURSHIP EDUCATION
The Simple Science of Entrepreneurship

The 5 Laws:
1. The Law of Straight Lines
2. The Law of ‘Clear End Vision’
3. The Law of Focused Attention
4. The Law of Focused Energy
5. The Inescapability of Action/Reaction
The Scientific Formula for Success:

 See your Target Clearly
 Keep it in Your Sight
 Hit it (Until You Make the Desired Mark)
The 3 Sources of Power:

1. Time
2. Energy
3. Money
All sources can be increased exponentially through Leverage
The 2 Most Important Decisions of an Entrepreneur:

1. Will I choose to take action that brings me closer to or further
away from my desired Target?
2. Will I make decisions that strengthen my Power or weaken
my Power?
Begin and end each day by reflecting on the day’s activities. Then
you will get twice as much done, increase your Power, and hit your
targets faster. Always take the straight path to your Target. Always
make the Strengthening Decision.
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DAILY TARGET SETTING
TO DO LIST
DO IT DELIBERATE
DUMP IT
(Focused Attention) (Mental Box)
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NATIONAL BOARD FOR TECHNICAL EDUCATION
ENTREPRENEURSHIP EDUCATION
Motivational Quotes for your meditation:
"Energy is the essence of life. Every day you decide how you're going
to use it by knowing what you want and what it takes to reach that
goal, and by maintaining focus."
"What this power is I cannot say; all I know is that it exists and it
becomes available only when a man is in that state of mind in which
he knows exactly what he wants and is fully determined not to quit
until he finds it."
"The most successful men in the end are those whose success is the
result of steady accretion... It is the man who carefully advances step
by step, with his mind becoming wider and wider - and progressively
better able to grasp any theme or situation - persevering in what he
knows to be practical, and concentrating his thought upon it, who is
bound to succeed in the greatest degree."
"The achievement of one goal should be the starting point of

another."
“Sloth makes all things difficult; but industry, all things easy. He that
rises late must trot all day, and shall scarce overtake his business at
night; while laziness travels so slowly that poverty soon overtakes
him.”
“Dost thou love life? Then do not squander time; for that is the stuff
life is made of.”
"Energy and persistence conquer all things."
"We are what we repeatedly do. Excellence then, is not an act, but a
habit."
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"It concerns us to know the purposes we seek in life, for then, like
archers aiming at a definite mark, we shall be more likely to attain
what we want."
"First, have a definite, clear practical ideal; a goal, an objective.

Second, have the necessary means to achieve your ends: wisdom,
money, materials, and methods. Third, adjust all your means to that
end."
"For what is the best choice, for each individual is the highest it is
possible for him to achieve."
“Men often become what they believe themselves to be. If I believe I

cannot do something, it makes me incapable of doing it. But when I
believe I can, then I acquire the ability to do it even if I didn’t have it
in the beginning.”
“The difference between what we do and what we are capable of doing

would suffice to solve most of the world’s problems.”
“You may never know what result comes of your action, but if you do
nothing there will be no result.”
“The victory of success is half won when one gains the habit of setting
goals and achieving them. Even the most tedious chore will become
endurable as you parade through each day convinced that every task,
no matter how menial or boring, brings you closer to fulfilling your
dreams.”
"It is those who concentrate on but one thing at a time who advance
in this world. The great man or woman is the one who never steps
outside his or her specialty or foolishly dissipates his or her
individuality."
“Action will destroy your procrastination.”
“A day merely survived is no cause for celebration. You are not here to
fritter away your precious hours when you have the ability to
accomplish so much by making a slight change in your routine.”
"It is always your next move."
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"Create a definite plan for carrying out your desire and begin at once,
whether you're ready or not, to put this plan into action."
"Effort only fully releases its reward after a person refuses to quit."
"I do not know anyone who has got to the top without hard work.
That is the recipe. It will not always get you to the top, but should get
you pretty near."
"Look at a day when you are supremely satisfied at the end. It's not a
day when you lounge around doing nothing; it's when you've had
everything to do and you've done it."
"What is success? I think it is a mixture of having a flair for the thing

that you are doing; knowing that it is not enough, that you have got to
have hard work and a certain sense of purpose."
"Success follows doing what you want to do. There is no other way to
be successful."
"If you expect nothing, you're apt to be surprised. You'll get it."
"The best vision is insight."
"Thinking well to be wise: planning well, wiser: doing well wisest and
best of all."
"Diamonds are nothing more than chunks of coal that stuck to their
jobs."
"Work is love made visible. And if you cannot work with love but only
with distaste, it is better that you should leave your work and sit at
the gate of the temple and take alms of those who work with joy."
"March on. Do not tarry. To go forward is to move toward perfection.

March on, and fear not the thorns, or the sharp stones on life's path."
"I prefer to be a dreamer among the humblest, with visions to be

realized, than lord among those without dreams and desires."
"To understand the heart and mind of a person, look not at what he
has already achieved, but at what he aspires to."
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"The only thing worse than being blind is having sight but no vision"
"I long to accomplish a great and noble task, but it is my chief duty to
accomplish small tasks as if they were great and noble."
"A little knowledge that acts is worth infinitely more than much
knowledge that is idle."
"One can never consent to creep when one feels an impulse to soar."
"I cannot do everything, but still I can do something; and because I

cannot do everything, I will not refuse to do something that I can do."
"Do not think of today's failures, but of the success that may come
tomorrow. You have set yourself a difficult task, but you will succeed
if you persevere; and you will find a joy in overcoming obstacles."
"Before everything else, getting ready is the secret of success."
"It has been my observation that most people get ahead during the
time that others waste."
"There is joy in work. There is no happiness except in the realization

that we have accomplished something. "
"Failure is simply the opportunity to begin again, this time more

intelligently."
"I am looking for a lot of men who have an infinite capacity to not
know what can't be done."
"If you can dream it, you can do it."
"The way to get started is to quit talking and begin doing."
Here's one last quote from Walt Disney: "All our dreams can come
true, if we have the courage to pursue them."
"He who conquers others is strong; He who conquers himself is

mighty."
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"At the center of your being you have the answer; you know who you
are and you know what you want."
"Great acts are made up of small deeds."
"If you do not change direction, you may end up where you are
heading."
Here's one last quote from Lao Tzu: "A journey of a thousand miles
must begin with a single step."
"There are three classes of people: those who see, those who
see when they are shown, those who do not see."
It had long since come to my attention that people of accomplishment

rarely sat back and let things happen to them. They went out and
happened to things."
"Iron rusts from disuse; stagnant water loses its purity and in cold
weather becomes frozen; even so does inaction sap the vigor of the
mind."
"Divide each difficulty into as many parts as is feasible and necessary

to resolve it."
"It is easy to hate and it is difficult to love. This is how the whole
scheme of things works. All good things are difficult to achieve; and
bad things are very easy to get."
"The difference between a successful person and others is not a lack

of strength, not a lack of knowledge, but rather a lack of will."
"We would accomplish many more things if we did not think of them
as impossible."
"Our goals can only be reached through a vehicle of a plan, in which

we must fervently believe, and upon which we must vigorously act.
There is no other route to success."
Here's one last quote from Pablo Picasso: "Action is the foundational
key to all success."
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"It is far more important to be able to hit the target than it is to haggle
over who makes a weapon or who pulls a trigger."
"In preparing for battle I have always found that plans are useless,
but planning is indispensable."
"We succeed only as we identify in life, or in war, or in anything else,

a single overriding objective, and make all other considerations bend
to that one objective."
Here's one last quote from Dwight Eisenhower:
"Pessimism never won any battle; No one can defeat us unless we first
defeat ourselves."
"Nothing is more difficult, and therefore more precious, than to be

able to decide."
"The truest wisdom is a resolute determination."
"Take time to deliberate, but when the time for action has arrived,
stop thinking and go in."
"If you want a thing done well, do it yourself."
"Victory belongs to the most persevering."
"Your goals are the road maps that guide you and show you what is
possible for your life."
"You must remain focused on your journey to greatness."
Here's one last quote from Oprah Winfrey: "Every day brings a
chance for you to draw in a breath, kick off your shoes, and dance. "
"My philosophy is that not only are you responsible for your life, but
doing the best at this moment puts you in the best place for the next
moment."
"Do the one thing you think you cannot do. Fail at it. Try again. Do
better the second time. The only people who never tumble are those
who never mount the high wire."
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"The big secret in life is that there is no big secret. Whatever your
goal, you can get there if you're willing to work."
Here's one last quote from Les Brown: "We must look for ways to be
an active force in our own lives. We must take charge of our own
destinies, design a life of substance and truly begin to live our
dreams."
"I advise you to say your dream is possible and then overcome all
inconveniences, ignore all the hassles and take a running leap
through the hoop, even if it is in flames."
"Wanting something is not enough. You must hunger for it. Your
motivation must be absolutely compelling in order to overcome the
obstacles that will invariably come your way."
“The more I want to get something done, the less I call it work.”
"You are never given a dream without also being given the power to
make it true. You may have to work for it, however."
“Since all the world is but a story, it were well for thee to buy the more
enduring story, rather than the story that is less enduring.” St. Colum
Cille (St. Columba of Scotland)
“In order to win, you must expect to win.”
“In order to live free and happily you must sacrifice boredom. It is not
always an easy sacrifice.” Richard Bach.
"People do not lack strength; they lack will."
"He, who every morning plans the transactions of the day, and follows
that plan, carries a thread that will guide him through a labyrinth of
the most busy life."
"A man is not idle because he is absorbed in thought. There is a

visible labor and there is an invisible labor."
"Perseverance, secret of all triumphs. "
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"Have courage for the great sorrows of life and patience for the small
ones; and when you have laboriously accomplished your daily task, go
to sleep in peace." Victor Hugo, a French poet, playwright, and
novelist.
"My attitude is that if you push me towards something that you think
is a weakness, then I will turn that perceived weakness into a
strength."
"Some people want it to happen, some wish it would happen, others

make it happen."
"I've always believed that if you put in the work, the results will come.
I don't do things half-heartedly. Because I know if I do, then I can
expect half-hearted results."
"I've missed more than 9000 shots in my career. I've lost almost 300
games. I've failed over and over and over again in my life. And that is
why I succeed." Michael Jordan
"Our greatest glory is not in never failing, but in rising up every time
we fail."
"As long as a man stands in his own way, everything seems to be in

his way."
"Write it on your heart that every day is the best day in the year."
"Even the knowledge of my own fallibility cannot keep me from

making mistakes. Only when I fall do I get up again."
"Great things are done by a series of small things brought together."
"If you hear a voice within you say "you cannot paint," then by all
means paint, and that voice will be silenced."
"The fishermen know that the sea is dangerous and the storm terrible,
but they have never found these dangers sufficient reason for
remaining ashore."
"Whoever I am, or whatever I am doing, some kind of excellence is

within my reach."
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"It's a job that's never started that takes the longest to finish. "
"True happiness involves the full use of one's power and talents."
“In my experience, there is no such thing as luck.”
"Either do, or do not, there is no try."
You didn't create your body, nor are you able to control the body's
functions. An intelligence greater than the human mind is at
work. It is the same intelligence that sustains all of nature. You
cannot get any closer to that intelligence than by being aware of your
own inner energy field -- by feeling the aliveness, the animating
presence within the body. - Tolle
"You have to find something that you love enough to be able to take
risks, jump over the hurdles and break through the brick walls that
are always going to be placed in front of you. If you don't have that
kind of feeling for what it is you're doing, you'll stop at the first giant
hurdle."
"Working hard is very important. You're not going to get anywhere

without working extremely hard."
"You simply have to put one foot in front of the other and keep going.
Put blinders on and plow right ahead."
"One must work and dare, if one really wants to live."
124

Eed 126 1 To Develop An Acquisitive Skills

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EED-126-1 - To develop an acquisitive skills

Entrepreneurship and enterprise development (Federal Polytechnic, Ilaro)

Studocu is not sponsored or endorsed by any college or university

Topic 1: Understand the meaning and scope of

4. Classify the different forms of enterprises into small,

Topic 2: Understand the History and Government Policy

2. Explain the role of entrepreneur in developing enterprises

Topic 3: Understand the types, characteristics and rationale of

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Topic 4: Understand the role of Entrepreneurship in

6. Explain the role of an entrepreneur in grassroots /

Topic 5: Understand Entrepreneurial Characteristics

Topic 6: Understand the Key Competencies and Determining

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4. Identify the strength and weaknesses in 3 above;

5. Explain business games and how to play them

a. Moderate risk taking;

Topic 7: Know the Motivational Pattern of Entrepreneurs

2. List the objectives of motivation;

4. Explain Thematic Appreciation Test (TAT) scores;

5. Explain how to analyze motive strength from TAT score;

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UNDERSTAND THE MEANING AND SCOPE OF ENTERPRISE AND

SPECIFIC LEARNING OUTCOME:

Narrower Context: Business venture or undertaking that

In its wider sense, an enterprise is any identified idea that is

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2. Different forms of Enterprises

People in a community have many interests and different

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this helps in money circulation among the enterprises and

3. Features of the Types of Enterprises

 Sectoral: Enterprises are classified along the type of

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Retail Food and Manufacturing Services Other

Micro/Cottage industries are defined as those whose total

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Small scale industries are defined as those with total

Medium scale industries are defined as those with a total

Large scale industries are defined as those with a total

Exercise: Classify the following enterprises, fill in an example of a

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9. Spare Parts Store

10. Motor Vehicle

13. Cyber Café

14. Publishing Firm

15. Travel Agency

'Perceived opportunities' - spotting the opportunity to

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What Entrepreneurs Are Like

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o creating capital - financial, social, and aesthetic

6. ADVANTAGES AND CONSTRAINTS OF SELF-

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basic reasons: personal satisfaction, independence, profits, job security

c. Profit and income: One of the major rewards expected when

d. Job security: Many enterprises are created by persons who are

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security is the assurance of continued employment and income.

e. Status: Status is a term used to describe a person’s social rank or

f. Flexibility: Individuals who become self-employed have options to

2. CONSTRAINTS OF WORKING FOR YOURSELF