Kab Module 3 Final

B
International
Labour
Office
KNOWABOUTBUSINESS
Entrepreneurship Education
in Schools, Technical Vocational Training Institutions and Higher Education
MODULE
3 2018
Entrepreneurial qualities
MODULE 3
Entrepreneurial qualities
International Labour Office, Geneva

International Training Centre of the ILO, Turin
Copyright © International Training Centre of the ILO 2018
This publication enjoys copyright under Protocol 2 of the Universal Copyright Convention. Applications for
authorization to reproduce, translate or adapt part or all of its contents should be addressed to the International
Training Centre of the ILO. The Centre welcomes such applications. Nevertheless, short excerpts may be
reproduced without authorization, on condition that the source is indicated.
Know About Business
ISBN 92-9049-396-8
First published 1996

Second edition 2000
Third edition 2002
Fourth edition 2004
Revised edition 2005
The designations employed in the publications of the International Training Centre of the ILO, which are in
conformity with United Nations practice, and the presentation of material therein do not imply the expression of
any opinion whatsoever on the part of the Centre concerning i.a. the legal status of any country, area or territory
or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in
signed articles, studies and other contributions rests solely with their authors, and publication does not constitute
an endorsement by the Centre of the opinions expressed in them.
Publications of the Centre, as well as a catalogue or list of new publications, can be obtained from the following
address:
Publications
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E-mail: publications@itcilo.org
http://www.itcilo.org
INTRODUCTION
What is Know About Business?
Know About Business (KAB) is an entrepreneurship education programme developed

by the International Labour Organization (ILO) to teach entrepreneurship in technical
and vocational education and training institutions as well as in secondary and higher
education institutions.
The programme seeks to prepare in-school youth – young men and women - for the
transition from school to the world of work by letting them discover and develop
entrepreneurial competencies and basic business management skills through a range
of games and exercises. The ultimate goal is to equip young people with skills and
competencies to start their own venture at some point in their life as well as to work
productively as employees in enterprises as intrapreneurs. KAB helps young people
to explore and develop an entrepreneurial mind-set and attitude that can be applied
in all aspects of life whether a young person choses to become an entrepreneur or an
intrapreneur.
KAB is directed to teachers and educators in technical and vocational education and
training institutions, general secondary education and teachers and lecturers in higher
education such as universities and polytechnics. KAB can be used in any educational
setting and can be adapted for specific technical and general courses where an
educational institution or a teacher wishes to reinforce entrepreneurship learning
outcomes. The typical age group is youth from 15-24 years, but the games and
exercises can be used to teach entrepreneurship to any age or target group.
The complete KAB package consists of a total of 80 hours of games and exercises
and is made up of seven modules, each representing a key area of entrepreneurship.
Each module consists of a Teacher’s Guide with detailed sessions plans and
exercises and a Learner’s Workbook. An Implementation Manual guides educational
institutions through the integration of KAB into existing systems and curricula.
Whereas some countries have adopted the full package in their national curricula,
other countries have adopted part of the KAB package to complement existing
curricula at different institutional levels. The ITC-ILO is available to provide advice and
guidance to any institution that considers implementing the full KAB package or part
of it.
For more information write to the Enterprise, Microfinance and Local Development
Programme (EMLD) of the International Training Centre of the ILO at emld@itcilo.org.
Know About Business 3

INTRODUCTION
Authors and acknowledgements
The Know About Business programme was initially developed by the International
Labour Organization in Kenya in 1996 as part of an entrepreneurship education
programme in vocational education and training. The team was led by Professor
Robert Nelson of the University of Illinois. Since then a number of revisions were
carried out in 2000, 2002, 2004, 2005, 2007 2008 and 2011.
Over the years many former and current ILO officials have contributed to the
continuous development of the KAB programme including Gulmira Asanbaeva, Rania
Bikhazi, Charles Bodwell, Linda Deelen, Jens Dyring Christensen, Klaus Haftendorn,
Marek Harsdorff, Nelien Haspels, Samih Jaba, George Manu, Barbara Murray, Debra
Perry, Annemarie Reerink, Virginia Rose Losada, Joni Simpson, John Thiongo and
Peter Tomlinson.
The current 2018 version was developed with contributions by Rania Bikhazi, Tong
Cai, Nuno Castro, Linda Deelen, Jens Dyring Christensen, Samih Jaba, Maria José
Mallo and Virginia Rose Losada. The layout and graphics was done by Enzo
Fortarezza. The team wishes to thank the authors of the ILO GET Ahead and Start
Up and Go training materials, that served as inspiration for some of the exercises in
this new KAB package. Very special thanks go out to all those involved in the national
translations and adaptations of Know About Business, whose work was extremely
helpful for the preparation of the present package.
4 Know About Business

MODULE 3: Entrepreneurial qualities
MODULE 3
Entrepreneurial Qualities
Module objectives:
 To foster learners’ entrepreneurial qualities.

 To make learners aware that entrepreneurial qualities can be
acquired over time.
Module coverage:
1. Setting entrepreneurial goals

2. Managing time
3. Listening
4. Negotiation
5. Making decisions
6. Identifying and managing risks
7. Leadership and management
8. Cooperation and teamwork

Topic 1: Setting Entrepreneurial

Goals
SUGGESTED TIME 2 hours
LEARNING OUTCOMES
 Learners become more systematic in setting their goals.

 Learners are encouraged to set more ambitious and measurable goals for
themselves.
ACTIVITIES
1. Ask learners about the meaning of “goals”. What are some of their own goals
in life and in terms of their studies? Do they have both long-term goals and
short-term goals? How do they set these goals? Mention that entrepreneurs
also need to have clear goals.
2. Show SLIDE 1 and discuss with the groups the reasons why each of the six
suggestions would help you in effective goal setting. Ask learners to give
examples and illustrations for each of the suggestions. Invite learners to take
notes regarding the suggestions.
3. Divide the class into groups of 5-6 learners. Have each group draw up a list of
goals for the case study in WORKSHEET 1. Invite one or two groups to
present their results to the class. Give other learners the opportunity to present
additional ideas or to comment on the results presented by the groups.
4. Invite learners to read HANDOUT 1.
 Ask learners to set a list of goals for the present school year;
 Invite learners to share the problems and insights they encountered in
setting their own goals;
 Discuss with learners the reasons for setting priorities.
For example,
“A” goals or “High” goals are those with highest priority, and can act as
tools for determining what course of action to take. Any courses of action
that are not likely to help accomplish “A” goals may need to be
reconsidered seriously.
“B” goals or “Medium” goals are those that would be highly desirable to
accomplish, but not considered essential. It would be good if you could
find the course of action that is likely to help you work toward both your
“A” and “B” goals. However if “B” goals conflict with “A” goals, you may
have to re-evaluate them both.

TOPIC 1: Setting entrepreneurial goals
“C” goals or “Low” goals are goals which would be desirable to achieve, but
not with high priority. Curiously, “C” goals have a way of interfering with “A”
and “B” goals. Often we tend to pursue less important goals instead of our
high priority goals because they may be easier to achieve in the short run. “C”
goals should not be allowed to interfere with action to achieve “A” and “B”
goals.
Remind learners that goals should be flexible. As conditions change, it is
sometimes necessary to revisit one’s goals. Goals should provide a guide for
action, not a plan to be stuck to no matter what.
5. Have the class discuss the following statements:
 “Not achieving a goal is better than having no goals at all.”
 “Achieving goals may bring temporary satisfaction, but it also pushes
us to choose new goals.”
6. Have learners identify 1 to 3 goals they want to achieve during the next month
and the next six months. Discuss with them the steps they would like to take
in order to achieve the goals.
7. Invite learners to fill in WORKSHEET 2.
8. Invite learners to read WORKSHEET 3 and to provide their answers to the
questions on the worksheet. Discuss the answers to the questions with the
group.

SLIDE 1
How to set goals?
 Your goals should be your own. They should be about

things that you really want to achieve.
 Goals should be specific. They should be clear, concrete

and written.
 Goals should be measurable. You need to be able to know

when you have reached a goal.
 Goals need to be reviewed periodically to measure the

extent to which your goals have been achieved.
 Goals should be set for a definite time period. Setting

deadlines can be an aid in attaining goals.
 Goals should include both short-term and long-term goals.
NOTE: You can practice setting personal goals using the

above guidelines from now on. If you become an entrepreneur
in the future, these guidelines will become extremely important
in establishing your entrepreneurial goals.

WORKSHEET 1
Case study: help Jeanette set goals
Jeanette has always loved doing things with her hands. She has studied a variety of
crafts, but has not pursued any specific craft. She enjoys learning new techniques,
but after she has perfected a technique she tends to lose the sense of challenge.
Because she has little money to spend on her crafts, she feels limited. In order to
pursue a craft further, she realizes that she will need to invest money in special
equipment. She also realizes that she will need to limit herself to one craft. Jeanette
has had an interest in wood-working for a long time. She has developed considerable
skill with hand tools, and has some experience in using power tools. She gets great
enjoyment out of designing various kinds of furniture, and would very much like to try
to make some of the unique furniture pieces she has designed.
Jeanette would like to begin acquiring enough basic hand tools and power tools to set
up a small woodworking shop. She feels fairly certain that the craft of woodworking is
broad enough to give her a continuous challenge. She is interested at present in
pursuing woodworking only as a hobby for now, but she might eventually like to go
into business for herself.

Using the suggestions for goal setting discussed in class, draw up a list of
goals for Jeanette. Be realistic, and remember to include both long- and short-
term goals. Which goals do you think would be Jeanette’s A, B and C goals?

HANDOUT 1
Setting entrepreneurial goals

a. Your entrepreneurial goals should be your own.
You should set goals for things you really want to achieve. You are more likely to
accomplish goals you set for yourself than if you try to achieve goals others want you
to accomplish. You must “have your heart” in your goals. You will be more successful
in attaining goals if you have a personal commitment to them. For example, Greg’s
parents always wanted him to be an attorney. Greg was always a good student and
after school, was accepted in university to study Law. After a few months, Greg began
to realize that he was not so interested in law. He knew he could succeed in law, but
his heart wasn’t in it. He realized it would be a disappointment to his parents if he
didn’t finish, but he also felt it was important to do what he wanted to do himself. As a
result, he began thinking about his own goals for the first time.
b. Goals should be specific.

Goals should be clear, concrete, and written. Writing down your goals will help you to
clarify in your own mind what you really want. There is something about writing it down
on paper that forces you to understand what you want and develop a sense of
personal commitment to your goals.
Most people carry around a number of vague goals in their heads. Take the goal “to
get into shape” for example. Depending on the person, this could mean taking an
exercise class, going swimming, setting up a program of jogging, etc. The point is that
you must know what being in shape means for you before you can take action.
c. Goals should be measurable.

You need to be able to know when you have reached a goal. The easiest goals to
measure are probably financial — they can be stated in dollars and cents. Other goals
may be more difficult to measure, but describing the exact conditions which will exist
when a goal is reached is helpful. There are at least two reasons why setting
measurable goals is important. Firstly, it helps you know exactly what to aim for.
Secondly, having measurable goals provides you with opportunities to celebrate your
success. Studies have shown that one of the most effective ways to develop a habit
is by rewarding it. The feeling of satisfaction which results from accomplishing a goal
is a type of reward. If you set goals you cannot measure, you are denying yourself the
satisfaction of having completed your goals!
d. Goals should be set for a definite time period.

Setting deadlines for completing your goals is important. Many people say that they
work best under pressure. They tend to leave things to the last minute, although they
realize that they could probably be more thorough if they would start early and plan
their time. When we are working toward our own goals, we probably have no outside

person putting pressure on us. Setting deadlines for ourselves can provide a form of
pressure to help us get our goals accomplished. Setting definite time periods for
accomplishing goals helps prevent procrastination.
e. Goals should be set both for the short term and for the long term.
There are really two kinds of short-term goals. One type of short-term goal is a step
toward a long-term goal. Some people call these sub-goals, since they are smaller
parts of larger goals. Another type of short-term goal is independent of a larger long-
term goal. Both kinds of short-term goals are necessary. The first kind helps you work
toward a long-term goal which is important to you. The second kind can help you
develop confidence in your ability to accomplish more difficult or complicated goals.
Mary, for example has a short-term goal of being able to count to 10 in Chinese.
Reaching this short-term goal will help her to reach her long-term goal to be able to
speak Chinese. She also has a short-term goal to be able to eat with chopsticks,
which is unrelated to any long-term goal.

WORKSHEET 2
Setting personal goals

1. Prepare a list of four important goals you want to achieve in all areas of your
personal life over the next years.
(1) ________________________________________________________________
(2) ________________________________________________________________
(3) ________________________________________________________________
(4) ________________________________________________________________
2. Do you think the goals meet the suggestions for setting goals that you have seen
earlier? Rewrite any goals which you think need to be improved.
(1) ________________________________________________________________
(2) ________________________________________________________________
(3) ________________________________________________________________
(4) ________________________________________________________________
3. Assign priorities to your goals using letters like A, B, C. “A” goals should be of the
highest priority, “C” goals being the lowest. “B” should be assigned when a goal does
not quite reach “A”, but you feel it is more important than a “C” goal.
4. Now review your “B” goals and reassign them to either “A” or “C”. This will help you
to determine which goals are most important to you, and which goals are not really
important to your life plan.
5. Write your reflections on this activity. Include how your goals relate to starting the
business that interests you.
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

WORKSHEET 3
Case study: Tui, becoming an

entrepreneur against all odds
As a deaf and hard-of-hearing person, a young woman called Tui, was turned down
for a job by all employers. Yet, the 25-year-old villager in Thailand is now a successful
entrepreneur with a regular annual income. Tui’s strong determination to set goals,
break out of her world of silence and reach out to others enabled her to make full use
of all her human faculties to completely change her life.
As a child, it was difficult for Tui to attend school because of her disability. To earn a
living, she could only find irregular work. Her goals were to have her own enterprise,
be independent, be respected in the community, help pay school fees for her younger
sister, and stay close to her family.
Looking for business opportunities, she decided to follow her neighbour's successful
example in cultivating vegetables. She learned a lot of farming skills from books and
obtained hands-on experience at her neighbour's farm.
When Tui felt she had enough experience, she tried to obtain the necessary resources
to set up her own enterprise. She obtained $600 ($250 came from her family, $50
came from friends and the remaining $300 came from a loan from a local micro-
finance institution). This was enough to start her enterprise.

Within one year, she was earning enough to buy additional land to expand her farming
enterprise. After three years, she began earning a regular annual income that was
more than twice her previous yearly earnings as a daily worker.
Tui repaid her loans and reached her goal of becoming a successful entrepreneur.
She is free of all debt and has a regular source of income. She recently purchased a
motorcycle so she can now take her vegetables to the market. She is able to take
care of herself and her family and this makes her feel very proud. She is widely
respected within the community as being a successful farmer and entrepreneur. She
never believed that her disability interfered with achieving her goal of being
independent and being an entrepreneur.
Think about following questions:

1. What were Tui’s goals?
2. What actions did Tui take to achieve her goals?
3. How would Tui know that she was achieving her goals?
4. Who could help achieve her goals?
5. Were there any obstacles facing Tui? Present obstacles and provide solutions.

Topic 2: Managing Time
SUGGESTED TIME 2.5 hours
LEARNING OUTCOMES
 Learners understand that time is one of the entrepreneur’s most important

assets. By managing time appropriately, people can achieve better results.
 Learners identify techniques for managing their time effectively.
ACTIVITIES
1. Invite the learners to form groups of 4 or 5 learners each. Hand out copies of
HANDOUT 1, but tell the groups not to read the text on the handout yet.
Explain to the groups that they will have 10 minutes to complete a list of tasks.
Upon completion of each task, they will receive a certain number of points as
indicated on the handout. Each group itself will monitor how many tasks they
manage to complete and how many points they accumulate.
2. When the groups are clear about the instructions, give them the signal that
they can start. Monitor time and make sure that they have to stop exactly 10
minutes later.
3. Invite the groups to share their experiences about the exercise they just
completed. Ask them to reflect on what made their groups successful or
unsuccessful in completing the tasks. Did they prioritize certain tasks? If yes,
on the basis of which criteria? Did they work together effectively? Were certain
tasks delegated? Why could certain tasks not be completed?
4. Give learners 20 minutes to complete WORKSHEET 1. Instruct the learners
to prepare a plan for the activities that they would like to complete during the
remainder of the day. Invite volunteers to share their plan of activities. Explain
that following a schedule helps people to control the time needed to complete
tasks. Mention that time schedules can be adjusted when there are
unforeseen circumstances. Remind learners to check at the end of the day
whether their activity plan worked.
5. Invite learners to read HANDOUT 2. Explain to learners that time-
management skills can apply to tasks in any kind of life situation such as
carrying out household chores as well as doing a paid job. Men and women
with strong time-management skills are likely to be able to complete a higher
number of tasks successfully, especially when they are in a situation where
they have to combine business responsibilities with family responsibilities.

TOPIC 2: Managing time
6. Show SLIDE 1 on time-management tips and SLIDE 2 on situations to avoid.

Discuss the different tips with the learners and make sure that they understand
and are able to apply the different tips.
7. Show SLIDE 3 (HANDOUT 3) as an example of a “to do” list. Explain to the
learners that a “to do” list serves as a reminder. A “to do” list provides a simple,
effective way of organizing tasks so that they can be accomplished in order of
priority. As each task is completed, it is crossed off the list. The list could be
duplicated on a small card and kept in your pocket, purse or wallet. The
reverse side of the card could be used for comments and other notes.
8. Explain to the learners that globally surveys on the use of time reveal that
women and men allocate time among their paid and unpaid activities in
significantly different ways. Women worldwide face longer working days (both
outside and in the household) and have less time for leisure activities. This is
a result of the many demands on women’s time arising from their multiple
responsibilities.
9. Ask the learners whether there any significant differences in the types of
activities on which their female and male peers and family members spend
their time. If yes, do these differences positively or negatively affect how they
would manage their business? What different strategies can be adopted by
women and men to improve the way they use their time? Tell learners that
when responsibilities within the household are shared more equally, women
entrepreneurs will have better chances to achieve their professional and
personal goals.
10. Give learners 20 minutes to fill in WORKSHEET 2. Explain that in order to fill
in this worksheet, they can think about a typical weekday. How do they spend
their time on a typical weekday? How many hours do they spend on their
studies, on other productive activities and how many hours do they spend on
leisure?
11. Invite some of the learners to present their results. Ask the volunteers whether
they were surprised to see how many hours they spend on certain activities?
Can they spend their time better? Explain that all persons need a certain
amount of leisure time in order to stay healthy and happy.

HANDOUT 1
Time-management exercise
1. Do two laps around the room (5 points)
2. Create something for the trainer to wear (example: a hat) (10 points)
3. Sing a song or say a popular rhyme together (5 points)
4. Brand something in the room in a creative way (10 points)
5. Make a paper airplane and make it fly from one end of the room to the other (10
points)
6. On one sheet of paper, write the last names of all of the people in your group (5
points)
7. Assign a nickname to each member of your group (10 points)
8. Convince a member of another group to join your group (20 points)
9. As a group, make the sounds of rain with your hands and feet (10 points)
10. Have your group perform a dance (15 points, with a bonus of 10 points if
anyone joins you from another group!)
Adapted from activities suggested by Trainers Warehouse (2011).

WORKSHEET 1
Time-management activity
Effective time-management means that you must effectively organize and plan your
day-to-day tasks. To get the most use of the available time you have each day, set
priorities and complete the most important tasks first.
It is recommendable to make a daily list of the tasks that you want to accomplish
during the day and to set up a rating system for your list. For example, this would be
an “A” for the most important tasks that must be done, a “B” for the tasks that should
be done, and a “C” for the least important tasks. Only when time allows you would
complete the “C” tasks.
1. Choose up to six tasks that you would like to accomplish by the end of today. Rank
each task by level of importance (A, B or C) and indicate how much time is needed
for each activity.
Task Rank (A, B or C) Time needed

1.
2.
3.
4.
5.
6.
2. Set up a schedule for the day to complete these tasks:
Time Tasks to complete

1. : - :
2. : - :
3. : - :
4. : - :
5. : - :
6. : - :

3. At the end of today…
Did your schedule work? What would you change to ensure that your schedule
works better for you next time? Did you spend less or more time on a particular
task? Did you omit or change any task?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

HANDOUT 2
Time-management
1. Plan effectively
Define your daily objectives as clearly as possible. One factor that marks successful
entrepreneurs is their ability to work out what they want to achieve and have written
objectives that they can review constantly. Long-term objectives should impact on
daily activities and be included on a daily “to do” list.
2. Complete high priority tasks first

Most people do the easy tasks first. What often happens, however, is that difficult
tasks don’t get done because too much time is spent doing the easy tasks. You may
run out of time to do the difficult tasks. Most entrepreneurs do the important task first
when their energy level is high. If time is available at the end of the day, the low priority
tasks are completed.
3. Delegate tasks to others

Entrepreneurs must be able to delegate work to staff. Delegating tasks is a good way
to build staff morale and allows the entrepreneur to focus on other essential tasks. As
a general rule, if a worker can do the task almost as well as the entrepreneur, then
the task should be delegated to an employee.
4. Maintain an orderly work space

Make sure that papers and tools are stored in fixed places, so that you don’t have to
waste time looking for them. Try to clear your desk of everything except the work you
intend to do immediately. Effective entrepreneurs are organized and work from clear
desks.
5. Be ready to “say no”

A lot of stress is caused when a person lacks the skills to “say no” for fear of upsetting
people. People are always asking for an entrepreneur’s time. Instead of being honest
and saying “no” to the request, the tendency is to end up accepting a responsibility
you neither want nor have time to perform. Saying “no” takes courage and tact.
6. Establish deadlines
More work can be done if you set specific deadlines to achieve certain tasks. Make
sure that the deadlines are realistic. Once they are set, you should do everything
possible to meet the deadlines.
7. Work in blocks of time

Try to do major tasks in blocks of time (three or four hours) during the period of the
day when you feel most effective. Schedule other activities around these blocks of

time. Working undisturbed for three or four hours can be very productive when dealing
with a special problem or situation. Although it may be difficult to allocate a block of
time for one activity, it will often be the only way in which to solve a particular problem.
8. Use the telephone

The telephone/cell phone is a main communication link between you and your working
world. Letters are sometimes necessary, but keep them to a minimum. Most of the
time problems can be solved more quickly by using the telephone/cell phone. A letter
provides only one-way communication while a telephone conversation is two-way
communication.
9. Take notes
Keep a note pad handy at all times. Writing down key points provides a permanent
record of committee meetings, telephone conversations, discussions with staff or
business clients, or simply your own thoughts. Record thoughts and ideas and jot
down such things as future appointments, things to do, names and telephone
numbers.
10. Be proactive
Don’t avoid making decisions. Reducing the amount of time you use to make a
decision can substantially increase the amount of time available to you.

SLIDE 1
Time-management tips
 Your goals should be your own. They should be about

things that you really want to achieve.
 Plan effectively
 Complete high priority tasks first
 Delegate tasks to others
 Maintain an orderly work space
 Be ready to “say no”
 Establish deadlines
 Work in blocks of time
 Use the telephone
 Take notes
 Be proactive

SLIDE 2
Try to avoid…
 Talking with people about personal matters unconnected with
work during working time
 Unnecessary or extra-long group meetings

 Allowing too many interruptions
 Disorganization
 Little or no delegating
 Being indecisive
 Being late or absent

HANDOUT 3
My “to do” list

THINGS “TO DO” TODAY Date: ____/____/_______
Main tasks Appointments

Things Com-
Priority Name Address Telephone
“to do” pleted

SLIDE 3
My “to do” list

THINGS “TO DO” TODAY Date: ____/____/_______
Main tasks Appointments

Things Com-
Priority Name Address Telephone
“to do” pleted

WORKSHEET 2
How do you spend your time?
TIME CHART Date: ____/____/_______
Main task:__________________________________
Time Activity Outcome
:00
:30
:00
:30
:00
:30
:00
:30
:00
:30
:00
:30
:00
:30
:00
:30

Topic 3: Listening
LEARNING OUTCOMES
 Learners are aware that attentive listening is essential for effective

communication.
 Learners are able to develop their listening skills and become better
communicators.
ACTIVITIES
1. Invite learners to stand in two lines. Place a flipchart or whiteboard in front of

each line of people and give the person who stands closest to the flipchart or
whiteboard a marker. Explain the group that you will whisper two words to the
two persons standing at the end of both lines. These two persons then have
to whisper these two words to the person who stands in front of them and so
on, until the person at the flipchart of whiteboards listens to the words. The
persons at the flipchart or whiteboard then have the task to draw the meaning
of the two words.
2. When you are sure that the groups have understood the exercise, clearly
whisper the following words to the two persons standing at the end of both
lines: “boiling pot” and “ringing phone”.
3. Evaluate with the groups what happened. Why did the message arrive or not
arrive at the person standing at the flipchart? Conclude by saying that when
the message has not arrived correctly, communication has not taken place.
4. Show SLIDE 1 about the nature of communication. Explain that in
communication, there is always a sender, a medium and a receiver. The
medium can be a letter, a conversation, a presentation, a twitter message or
an email, for example. If the receiver has not understood the message
correctly, effective communication has not taken place.
5. Have learners complete the self-assessment for listening skills in
WORKSHEET 1. Invite learners to share their findings with the group. Analyse
with the group why the learners provided certain responses. Conclude that
most people are not good listeners by nature, but that we can improve our
listening skills through practice.
6. Invite the learners to read HANDOUT 1. To discuss and summarize the four
key points, show SLIDE 2. Have a discussion with the group on the questions
listed.

TOPIC 3: Listening
7. Invite the learners to participate in a ROLEPLAY. To get started, have the

group identify at least 10 topics that are controversial. Write the topics on a
piece of flip chart paper. Divide learners in groups of three. In each group of
three, learners will communicate with each other about one of the topics, with
the three learners assuming the following roles:
Speaker: Talk about one of the topics non-stop for about 1 minute.
Listener: Pay attention to the speaker and then recall the important
facts.
Observer: Observe the interaction and then provide feedback to the
“listener” on how well he or she attended to the “speaker”
and how well he or she recalled the important facts.
The observer can use WORKSHEET 2 to record his or her observations. After
the observer gives the feedback, the “speaker” will be asked to comment
whether the feedback was correct. Rotate roles until everyone has an
opportunity to play each role.
8. Invite learners to read HANDOUT 2 on entrepreneurial listening skills. Have a
discussion with the learners probing their understanding why it is particularly
important for entrepreneurs to develop effective listening skills.
9. Invite learners to read HANDOUT 3 on how to develop excellent listening skills.
Finalize the session by asking the learners about their main learning points
and their action points to develop effective listening skills.

SLIDE 1
Effective communication
INFORMATION
Sender Receiver
(Medium)

TOPIC 3: Listening
WORKSHEET 1
Listening skills self assessment

To what extent do you agree with each statement?
STATEMENT FULLY SOME- SOME- FULLY

AGREE WHAT WHAT DISAGREE
AGREE DISAGREE
A. Ability to define the purpose for listening
1. I think about the reasons why I am listening
2. I understand the importance of listening
B. Ability to fully attend to the speaker
3. When I hear extraneous sounds, I don’t allow
myself to be distracted by them
4. I concentrate on the speaker’s message rather
than on how he or she looks or sounds
5. I listen to the speaker without judging or
criticizing
6. I let the speaker finish and do not interrupt
7. I give verbal and/ or nonverbal indications
throughout the interaction that the speaker has
my full attention
8. I take notes when necessary to help me
understand and remember
C. Ability to process the message
9. I try to listen for clues that tell me what the
speaker may be feeling (e.g., uncertain,
worried, angry, etc.).
10. I think about what the speaker means and what
additional information I need to know
11. I try to put myself in the speaker’s place
D. Ability to confirm correct understanding
12. I restate (or paraphrase) messages to confirm
my understanding
13. I probe to get additional information

HANDOUT 1
Effective listening process

1. Define the purpose
Identifying the purpose of listening helps you to:
 Focus on the important parts of the message.
 Invest the energy needed in order to listen effectively.
 Conserve energy when listening is not important.
2. Attend to the speaker

Attending to the speaker involves:
 Making eye contact
 Eye contact increases your chance of “getting” the message.
 When you are on the phone, try not to look at things that will distract
you.
 Adjusting your body posture
 Your body posture, including a slight leaning-in posture, suggests that
you are paying attention and helps you to stay tuned in.
 When on the phone, try to position yourself so that you are comfortable,
but not so relaxed that you lose the ability to attend to the caller.
 Providing verbal or nonverbal acknowledgment. Verbal or nonverbal
acknowledgement of the speaker helps to involve you in the
communication process and lets the speaker know you are paying
attention.
 When you are on the phone, use vocal attending behaviours: “uh-huh,”
“mm-hmmm,”
 When interacting with the speaker in person, use nonverbal attending
behaviours such as head nodding and facial expressions.
 Clearing your mind
 Clear your mind of your own thoughts to avoid wandering mentally.
 Avoiding distracting behaviours that take away from your ability to listen.
3. Process the message

Processing the message is the transformation of words and non-verbal
communication into a meaningful understanding of the message. Paying attention to

TOPIC 3: Listening
body language, helps you to understand the meaning of the message. Trying to put
yourself in the situation of the speaker, will help you to put the message in context.
4. Confirm the correct understanding of the message

After a message is processed, a listener can:
 Paraphrase the message to the speaker in order to confirm understanding.
 Repeat the message to himself or herself to aid in retention.
 Probe for missing information.

SLIDE 2
The listening process

To be an effective listener, you should:
 Define your purpose for listening
 Attend to the message
 Process the message
 Confirm correct understanding of the message
Questions for discussion:
 Why do entrepreneurs need to be good listeners?
 Why do entrepreneurs ask good questions and then listen

closely to the response?
 Why are entrepreneurs good at processing responses and
selecting relevant information?

TOPIC 3: Listening
WORKSHEET 2
Role play: attending skills

Use this worksheet to record your observation of attending skills.
Did the listener exhibit

Comments
this behavior?
Maintain eye contact

□Yes □No
Face the speaker squarely

□Yes □No
Lean slightly toward the speaker

□Yes □No
Use verbal and nonverbal

attending behaviours
□ Yes □No
Avoid distracting behaviours

□Yes □No
Rate how many of the important facts were accurately recalled by the listener:
○ Very few of the facts
○ Some of the facts
○ Many of the facts
○ Almost all of the facts
Comments:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

HANDOUT 2
Entrepreneurial listening skills

Entrepreneurs are usually good communicators, but they need to take into
consideration the ability to listen. Most of us listen to only 25% of our ability. How
would your closest friends rate you? Your teacher? Your family? Would some people
suggest that you should talk less and listen more?
Listed below are some suggestions that can improve your listening skills. Check those
that are applicable to you.
I know how to:
 Send people signals through my eyes and body gestures so that they know I
am listening.
 Relax when communicating to others so they will feel comfortable about
adding their comments.
 Slow my mind down when listening so that I won’t anticipate what people say
before they say it.
 Improve my concentration.
 Avoid forming a reply before I hear what the other person has to say.
 Not be defensive about my point of view during communication.
 Keep my voice soft rather than loud and aggressive.

TOPIC 3: Listening
HANDOUT 3
Developing excellent listening skills

Everyone should be aware of the need to develop excellent listening skills. Most of
this awareness unfortunately comes from spending time with others who do not know
how to listen. Not being listened to isn’t fun. Listening is an important skill. If you desire
to be an excellent entrepreneur, it’s imperative that you learn to listen and listen well.
The sad truth is that most people pay little attention to being excellent listeners. We
want to talk and be heard at the expense of listening to others. We want to say what
we think, be the star in the conversation. If we will not listen, how do we expect to be
heard?
The benefits of listening are huge. When entrepreneurs learn to listen effectively, they
will be able to influence any organization. They will see opportunities for growth and
increased productivity. Customers will be drawn to them and want to do business with
them. Entrepreneurs who listen are able to develop long relationships. Entrepreneurs
will able to manage conflicts more effectively. They will be more creative and
connected. The main point is that by being a better listener, you will be more influential
in all you do.
Nobody wants to be around someone, who consistently dominates the conversation.
And no person wants to just listen. Everyone wants a chance to talk and to be heard.
In order to begin training to listen more effectively, just be quiet. Let the other person
talk. You may want to ask questions and then listen carefully to the response. In doing
so, you will learn more things that you can genuinely respond to from active listening.
When you listen, others are able to shine and you are able to learn.
Everyone can practice the art of listening and develop it into a skill. Entrepreneurs
who are the best communicators are also the best listeners.
Tips for developing excellent listening skills

1. Attention. Give your full attention to the person speaking. When you are on the
phone, just listen. Give your full attention to the speaker.
2. Focus. Focus on the speaker and what he or she is saying. Do not plan what you
will say next. By planning what you’ll say next, you’re not listening.
3. Let the other person finish. Do not begin talking until the other person is finished.
It’s okay to ask them if they are done. Don’t start talking immediately. Let the words
of the other person sink in and then think about what you want to say. There can be
silence in conversations.
4. Important points. When you begin speaking, review the important points of the
speaker. Make sure you heard them correctly.

5. Ask questions. People love to have others ask them questions.

6. Give feedback. Let the other person know what you think about their comments
and ideas.
7. Be quiet. Speaking less and listening more is a good thing. The old saying goes –
you have two ears and one mouth for a reason. Use your ears.
8. Center yourself on others. Life is not all about us. We need to remind ourselves
of this often. Focus on others. What are their strengths? What can they contribute?
9. Let them be the star! People want to shine. They want to be heard and to be a
star. Let them. We don’t need to shine all the time. By allowing others the chance to
shine – we develop other leaders and bring out the best in people.
Quote for the day about listening:

“I only wish I could find an institute that teaches people how to listen. Business people
need to listen at least as much as they need to talk. Too many people fail to realize
that real communication goes in both directions.”
-- Lee lacocca, president and CEO of Chrysler company (the person who revived
Chrysler)

TOPIC 4: Negotiation
Topic 4: Negotiation
LEARNING OUTCOMES
 Learners understand the basic principles of effective negotiation.

 Learners have an opportunity to practice their negotiation skills.
 Learners are aware that gender stereotypes and power relations within
society may affect women and men’s negotiation power.
ACTIVITIES
1. Tell learners that negotiation takes place in many life situations, including in
families and schools. Explain that negotiation is a very important aspect of
entrepreneurship. In business, negotiation takes place with customers,
employees, suppliers and others in order to reach agreements.
2. Invite two volunteers to play the role play in HANDOUT 1. Explain to the group
that they will see a role play that portrays a bargaining (negotiation) between
a seller and a buyer.
3. When the role play is completed, ask individuals to complete the questions in
WORKSHEET 1. Once they have completed their worksheets, conduct a
group discussion about the questions.
4. Invite students to read HANDOUT 2 on the preparation process for effective
negotiation. Ask the learners if they have any questions and comments and
deal with their questions in plenary.
5. Invite students to read HANDOUT 3 on effective negotiation. Ask the learners
if they have any comments or questions. Explain to the learners that gender
stereotypes and power relations within society may affect women and men’s
negotiation power. For instance, women may not be expected to be tough
negotiators or to raise their voice. It is important to create the necessary
support structures for women to be able to negotiate with equal terms.
6. Play the Big Apple Transaction Game as explained in EXERCISE 1, and using
WORKSHEET 2.
7. Extract lessons learnt from the Big Apple Transaction Game using the
questions on SLIDE 1.

HANDOUT 1
Role play – A street negotiation scenario

On a hot summer day, Joe passes by a watermelon stall on his way back home from
work. He looks at the watermelons and thinks “Waternelons, mm-hmm, they look nice!
I would love to buy some to take home.” So he starts to talk to Tom, the seller.
Joe: Good afternoon! How much is a watermelon?
Tom: 1.50 per kilo sir! They are super sweet!
Joe: 1.50? I just passed by a vendor who only asked for 1.00.
Tom: Really? My watermelons are from Village C, you know, where the best
watermelons are produced in the whole region! Others normally charge 1.60 or even
1.80 for Village C melons.
Joe: How about 1.20? Your melons look nice, but obviously these are left-overs from
other customers. They are small, and not round.
Tom: But they are very tasty. Well, I can offer you 1.40. I don’t make any profits, really.
1.20 is even lower than my purchasing price.
Joe: Thank you, and let’s make it 1.30. I’ll buy two more and you will be able to go
home earlier.
Tom: Fine. Pick the ones you like.

WORKSHEET 1
Questions on the role play

1. During the negotiation process, what are the goals of the buyer (Joe) and the
seller (Tom) respectively?
2. What did Joe do/say to convince Tom to lower the price?
3. What did Tom do/say about his products (the watermelons) and price?
4. As a buyer, what would you do in a negotiation process? As a seller, what would

you do?

HANDOUT 2
Preparing an effective negotiation process

A good preparation process is key to effective negotiation. These are the main steps
to prepare for a negotiation process.
1. Define your own goals. What do you want to get out of the negotiation process?
How far are you prepared to move on your negotiable issues?
2. Learn as much as possible about the persons that you will negotiate with. What is
their background, education, reputation? What kind of compromises/agreements
have you seen them reach with other people?
3. Try to think what the goals and needs are of the persons with whom you will be
negotiating. Which of these goals do you think are negotiable and which are non-
negotiable for them. Remember that a point that may be very important to the other
side to win, may be insignificant to you — and vice versa. Insist those points that are
important and non-negotiable to you, while you might as well compromise on minor
details for success in negotiations.
4. Try to list all the issues that will surface in the negotiation. If you have thought this
through in advance, you will face fewer surprises and therefore the process of
negotiation will be easier.
5. Try to think of potential “win-win” solutions to issues under negotiation. “Win-win”
means that the agreement reached through negotiation includes some new benefits
or advantages for both sides.
6. Remember that you are more likely to achieve your aims from the negotiation when
you have as much necessary information at hand as possible. Try to come to the
negotiation table with all the information that you may require, either on paper or in
your head.

HANDOUT 3
Effective negotiation
Personal attributes
A negotiator needs to show the following personal attributes:
1. Integrity
A negotiator must be honest as honesty builds mutual trust and cooperation which is
crucial in bringing about free and open exchange of ideas.
2. Empathy
This is the ability to understand the other party’s point of view. This can be used to
identify common ground in a negotiation.
3. Patience
This is the ability to stay calm. It makes a person able to accommodate another
person’s views in negotiation.
Negotiation skills
For effective negotiation, the following skills are required:
1. Clarity in communication is essential. Do not babble, or engage in long speeches,
otherwise you lose attention and points.
2. Stick to objectives and learn to avoid personalizing situations.
3. Control your emotions and never lose your temper.
Negotiation process
These are important points to create an effective negotiation process:
1. Try to maintain an atmosphere of openness. Occasional jokes help to relieve
tension, and make it easier for both sides to concede points that should be
conceded.
2. When the process gets difficult, call a recess or suggest a coffee or tea break, so
that both parties get the time to return to the negotiation table with fresh ideas and
energy.
3. The objective of negotiation is not to beat the other side. It is to strike a deal that
is better for everybody than the initial conditions. Each side should concede points
of lesser value to it for points of greater value.
Negotiation is a very creative process. Negotiation skills can be acquired over time!

EXERCISE 1
The big apple transaction game

In this game, the buying and selling of boxes of apples will simulate the market place
and the dynamics of negotiation that businesses encounter every day.
Materials needed
 36 Buyer Cards: 2 cards indicating price 75, 4 cards 65, 12 cards 60, 11 cards
50 and 7 cards 40.
 36 Seller Cards: 2 cards indicating price 80, 4 cards 75, 8 cards 70, 6 cards
60, 5 cards 50, 7 cards 45, and 4 cards 35.
(There should be a total of 72 cards. If more than 40 learners are playing the
game, more cards should be made with fewer cards with higher prices and
lower prices, and more cards with medium prices.)
 A table for the Approval Official and the Keeper of the Buyer/Seller Cards.
 Pens/pencils
Preparation
1. Tell learners that they will be involved in an activity that simulates the
marketplace.
2. Clear the center of the classroom as it will serve as the marketplace. If the
activity becomes too noisy, the class may play the game outside.
3. Ask 2 volunteers to administer the game: a Keeper of the Buyer/Seller Cards
and an Approval Official who will approve all transactions.
4. Divide the class into two equal groups. One group will be Sellers; one group
will be Buyers. Buyers and sellers interact in the market place by buying and
selling apples.
5. Explain to learners:
 The prices for the apples are guided by Buyer Cards and Seller Cards
with written prices. Neither the buyer nor the seller must know the price
indicated on each other’s card, which means that during the negotiation
process, buyers and sellers should not reveal the amounts indicated on
their cards to one another.
 Buyers can buy apples at any price, and the same with sellers. If a buyer
decides to pay more than the price mentioned on the card, he or she will
make a loss for the transaction, on the other hand if the buyer pays less
than the price indicated on the card, he or she will make a gain. Similarly,
if a seller manages to sell his or her apples for more than the price

mentioned on the card, he or she will make a gain for that transaction. On
the other hand, by selling for less than the price indicated on the card, the
seller will make a loss.
 The goal of both the sellers and buyers is to make as much profit as they
can. Profit = total gain – total loss.
6. The game is divided into three rounds of about 10 minutes each (trading time
may be reduced to accommodate short class periods as long as each round
runs for the same amount of time).
7. Learners keep their own transaction sheet either as a buyer or seller.
Procedure
1. Each member of the buyer and seller group randomly collects one card from
the Keeper of the Buyer and Seller Cards.
2. Buyers and sellers start the negotiation process in the centre of the classroom,
they approach one another to negotiate prices without revealing the prices
indicated on their Buyer or Seller Cards.
3. If a buyer and seller cannot agree on a price, they move on and find someone
else to sell to or buy from.
4. When a particular buyer and a seller agree on a price, they should record this
transaction on their transaction sheets (WORKSHEET 3).
5. Then both the buyer and seller in the transaction approach the Approval
Official who will verify the stated card price and the agreed transaction price
on each “My Transaction Sheet” to prevent cheating.
6. Both the buyer and seller collect new cards from the Keeper and return to the
market place to continue the negotiation process.
7. After 10 minutes has expired indicate that Round 1 has come to an end.
8. Learner’s calculate and fill in their transaction sheets the profit or loss made
with regards to each transaction in Round 1.
9. At the end of each round, buyers and sellers keep their cards for use in the
next round.
10. Indicate that Round 2 has begun.
11. The same procedures and rules are followed in Rounds 2 and 3.
12. At the end of Round 3, learners calculate and fill in on their transaction sheets
the profit or loss made with regards to each transaction in Round 3.
13. Thereafter, they calculate their overall net profits or losses for the entire game.
14. After the teacher has verified the individual transaction sheet of the learner
who has made the most profit, he or she is announced as winner of the game.
Notes on the big apple transaction game

 Have each participant record his/her transactions as they are made. Review
details on the sheet if necessary.
 After each trading round, allow students time to figure their net losses or gains.

 Encourage learners to make as many deals as they can in the time permitted.
Explain that it is permissible to take a loss in order to get a big apple
transaction card for a new transaction. (Try not to give away the fact that the
students who will have the highest profits are usually those who engage in the
most transactions. This fact will be “discovered” during the discussion
following the completion of the game.)
 While learners are negotiating, manage by walking around and helping where
there is uncertainty. At the end of the game verify the results and announce
the winner.

Seller cards
Apple Seller Apple Seller

You are selling one bin of apples. You are selling one bin of apples.
Try to get the highest price. Try to get the highest price.
You should not take less than You should not take less than
________ unless you decide ________ unless you decide
to take a loss. to take a loss.



Buyer cards
Apple Buyer Apple Buyer

You are buying one bin of apples. You are buying one bin of apples.
Try to get the lowest price Try to get the lowest price
possible. You should not pay possible. You should not pay
more than _______unless more than _______unless
you decide to take a loss. you decide to take a loss.



WORKSHEET 1
Big apple - my transaction sheet

NAME_________________ I am a ○ Buyer ○ Seller
Directions
 For each transaction, when you get a card enter the price in the second
column.
 After you make a transaction, record the price in the third column of the same
row.
 Calculate your losses and gains by taking the difference between your
transaction price and the price on your card for each transaction. For example,
a seller who sells at a price higher than the price on the card, makes a gain;
a lower price means a loss. A buyer who buys at a lower price than the card
price, make a gain; a higher price means a loss. Ignore the break-evens.
 Add up the gains, losses, and totals at the end of the game, and mark them
in the appropriate place at the bottom. Your net gain or loss is the difference
between the sum of the gains and the sum of the losses. Indicate where
rounds 1, 2, 3 end by a mark.
Indicated
Transaction Transaction
Price on Gain Loss
Number Price
Card
1
2
3
4
5
6
7
8
9
10
Totals ____________ ____________
Profit ____________

SLIDE 1
Analysing the game
a) Who determined the “market price” for apples? Was it the

buyers or sellers?
b) How did supply and demand (sellers and buyers) influence
price?
c) Why were some of you able to make more profit than others?
d) To what extent could learners identify parallels between what
was required of them during the game and what might be
required of them as future entrepreneurs?
e) Why is negotiation considered a two-way process?
f) Why are negotiation skills important to the success of a
business?
g) Are females or males better negotiators?
h) Why do buyers and sellers use creativity in the negotiation
process?

ANWERS TO QUESTIONS - THE BIG APPLE GAME
a) Who determined the “market price” for apples? Was it the buyers or sellers?
Answer: Both buyers and sellers interacting in the market place through negotiation.
b) How did supply and demand (sellers and buyers) influence price?
Answer: Sellers tried to get higher prices, while buyers tried to get lower prices.
Because there was competition among members of each group, no one had control
over the price.
c) Why were some of you able to make more profit than others?
Answer: In general, those who were able to complete many transactions, made more
profit. This is the same as turnover in a business. The higher the turnover, the more
likely it is to make a profit.
d) To what extent could learners identify parallels between what was required
of them during the game and what might be required of them as future
entrepreneurs?
Answer: You have to use convincing arguments when you negotiate. You should
present in professional manner (smile, stand up straight, speak in a friendly tone, etc.).
e) Why is negotiation considered a two-way process?
Answer: Because both the buyer and seller need to agree on a mutual price.
f) Why are negotiation skills important to the success of a business?
Answer: Many of the entrepreneur’s responsibilities involve negotiating with various

groups such clients, suppliers, wholesalers, manufacturers and city officials.
g) Are females or males better negotiators?
Answer: Being involved in negotiations requires a skill and the more you practice a
skill like negotiation, the better you become at it, irrespective of your gender.
h) Why do buyers and sellers use creativity in the negotiation process?
Answer: Buyers and sellers use creativity in the negotiation process to identify new
reasons for buying or selling a product, and to solve problems downing the negotiation
process.

Topic 5: Making Decisions
LEARNING OUTCOMES
 Learners apply a rational approach to making personal and business

decisions in order to make success more probable.
ACTIVITIES
1. Ask learners to recall a situation when they needed to make decisions. Invite
learners to describe what the situation was. Ask them whether they were able
to make the decision, how they made it or who helped them make it.
2. Have learners read HANDOUT 1 as background information on decision-
making. Use SLIDE 1 to present and discuss the seven steps in the decision-
making process. Ask the learners whether they went through this process in
the situation they just recalled and described.
3. Divide the class into groups of 4 or 5 persons. Let leaners read the problem
on WORKSHEET 1. Allow the group to discuss the problem and identify at
least three alternative solutions. Have the learners provide potential
advantages, disadvantages and consequences for each alternative solution.
4. Draw the Decision-Making Chart presented in WORKSHEET 1 on the board
(the number of rows of the chart depend on the number of groups). Have each
group write on the chart their best alternative solution, along with the potential
advantages, disadvantages and consequences.
Have the class discuss the alternative solutions and then vote on the best
possible solution to be implemented. Once the learners have voted and the
class has decided on the best solution, the following questions might be asked:
 Why is this alternative the best possible solution?
 What additional problems might be created by implementing this
solution?
5. Have learners read HANDOUT 2. Ask the learners if they have any comments
or questions and deal with their questions in plenary.
6. Write this problem on the board:
“How could our class raise money to buy tablets for the school library?”
Have the learners work in small groups to come up with possible ways to raise
funds to buy library tablets. At the end of the brainstorming session, identify
the three best activities.

TOPIC 5: Making decisions
7. Discuss with the group the positive and negative aspects of group decision-
making.
Highlight the following positive aspects of group decision-making:
 The total sum of the group’s knowledge is greater.
 Groups generally develop a much wider range of alternatives.
 Participation increases the acceptability of the decision to the group.
 Group members understand better why a decision was made.
Highlight the following negative aspects of group decision-making:
 More time is needed.
 One individual or dominant group (sometimes based on gender) may
control the group.
 Pressures to conform may inhibit group members from responding.
 Competition can become overly intense among group members.
 Groups tend to accept the first potentially positive alternative.
 The decision may be a compromise that may be unsatisfactory to some
group members.
8. Explain that decision-making is an organized, step-by-step process. Yet, many
people try to make their decisions by trial and error. The first step in learning
how to make decisions is to discover which skills need improving.
9. Let learners review the instructions on WORKSHEET 2 and complete the
worksheet. This activity is designed to help learners get a realistic picture of
their own decision-making skills, so they can improve areas in which they are
weak.
10. Use SLIDE 1 to review the answers with learners. Discuss why each answer
is true or false.

HANDOUT 1
Overview of decision-making
Entrepreneurs make important decisions that have a great impact on the future of
their businesses. Decision-making ability, a most valuable entrepreneurial resource,
comes from the experience of being exposed to making decisions in increasingly
complex situations.
Entrepreneurs must approach problems from various perspectives and seek
innovative ways to solve them. They must use their insight and experience to evaluate
the potential outcomes and consequences of alternative solutions.
There is a specific process to be followed to solve a problem and make a decision.
The process usually involves the following steps:
(1) Identify major problems
(2) Determine the major causes of the problem
(3) Determine potential solutions to the problem
(4) Evaluate potential solutions
(5) Select the best solution
(6) Implement the solution
(7) Verify that the solution resolves the problem.
Although this rational approach is logical and sensible, it will not necessarily make the
solution to the problem work. The entrepreneur’s leadership and expertise are also
needed to implement a solution successfully. A certain amount of firmness and
enthusiasm is required in implementing a decision. Entrepreneurs must be positive
about the future outcomes of a solution. They don’t waste time in second guessing a
decision. Once they are implementing a decision, all doubts and uncertainties are left
behind.
Entrepreneurs must be decisive in their actions as they have definite purposes and
clearly identified goals to achieve. Most entrepreneurs have little fear of decision-
making because they have little fear of failing.
Timing is extremely important in decision-making, especially when a business is
growing. In some instances, decisions must be made quickly and implemented
immediately. Some entrepreneurial decisions are made without the benefit or
knowledge of future conditions, developments or changing conditions. Effective
monitoring of the implementation of the decision will reveal any weaknesses in this
decision and provide information for follow-up actions by the entrepreneur.
Critical decisions are not easy to make, but they may be required frequently. Worse
than making a wrong decision is when entrepreneurs avoid making any decision at

all. Remember, decision-making is an art; the more it is practiced, the more expert an
entrepreneur will become.
Once a problem has been defined, and all relevant information and data have been
collected, entrepreneurs must identify possible solutions to the problem. They might
begin with a brainstorming session where a group of employees interact and develop
a list of possible alternative solutions. Although most problems have no single “right
solution”, it is up to the entrepreneur to determine the best possible solution.
WORKSHEET 1 shows how to evaluate alternative solutions to a problem situation.
The primary advantage of using the chart is that a person is able to compare various
alternative solutions in relation to potential advantages, potential disadvantages and
potential consequences. Listing potential advantages will indicate how each potential
solution will be beneficial. The potential disadvantages will illustrate how the potential
solution will not be beneficial. An advantage or disadvantage may be similar for two
or more alternative solutions.
The potential consequences should be identified in the last column and will be the
results of analyzing the potential advantages and disadvantages and should equal
the potential net result of implementing a particular solution. The use of the chart can
help entrepreneurs analyse major problems that will have a great impact on their
business.

SLIDE 1
Steps of the decision-making process
1 Identify the major problem
2 Determine major causes of the problem
3 Determine potential solutions
4 Evaluate the potential solutions
5 Select the best solution
6 Implement the solution
7 Verify that the solution solves the problem

WORKSHEET 1
Decision-making chart
Suppose you are operating a small business employing 4 people (2 are full-time and
2 are part-time). All of your employees are dependable except 1 full-time person who
is often late and frequently asks for extra days off. This situation is creating a morale
problem with other employees.
Fill in the chart below with an analysis of major causes of the problem, and come up
with 3 alternative solutions along with the advantages, disadvantages and potential
consequences, then select the solution that you plan to implement.
Decision-making chart
Problem: 1 full-time employer is often late and frequently asks for extra days off.
This situation is creating a morale problem with other employees.
Causes:
Evaluate solutions
Potential Selected
Solutions Potential Potential Potential or not
Advantages Disadvantages Outcomes

HANDOUT 2
Joint decision-making and brainstorming

Joint decision making
There is an old saying that “two heads are better than one”. This may be true in many
decision-making situations. There are many advantages to involving the members of
a group in the decision-making process. With several people participating, there are
naturally more ideas, which usually results in generating more and better alternatives.
Involving other people in the decision making process also has the advantage that
they will be more committed to implement to decision. People who participated in
reaching a decision usually feel a commitment to make it work.
There are some situations in which individual decision making is preferable. Because
group decisions almost always require more time, an individual decision is generally
best when there is a critical time limitation. Another potential problem is the tendency
for one person to dominate and control the group. The natural pressure to conform
with the opinion of their superiors can also inhibit certain group members.
Brainstorming
Brainstorming is a form of group decision-making that involves presenting a problem
and then allowing the group to develop ideas for solutions. To encourage the free flow
of ideas, no criticism of suggested solutions is allowed initially. Only after all ideas
have been presented and recorded does the group begin to evaluate the ideas. The
basic approach is to encourage all participants to voice any ideas that come to mind.
The ideas may seemingly be impractical, but they may lead to a creative solution.
Ideally a session should last from 30 to 45 minutes. The problem to be considered
should not be discussed before the session. A small room and conference table might
be used to encourage free-flowing communication.
Brainstorming is most applicable to problems requiring creative ideas such as: naming
a new product or service, coming up with a new use for a product or identifying new
ways to reduce wasted time.

WORKSHEET 1
How much do you really know about

decision-making?
Read each statement in the chart below. Is it true or false?
STATEMENT T/F
1. The ability to make decisions effectively is something you are born

with; you either have it or you don’t.
2. Every problem has one good solution.
3. When making a decision, I use my first idea.
4. The best approach to making a decision is to put it in the form of a

question.
5. One thing that can make a decision more difficult is not
understanding the issue.
6. It is usually a good idea to try to make a decision as quickly as
possible.
7. Decision-making mostly involves trial and error.
8. When making a decision, I try to think of all the alternatives before

choosing one.
9. When I have a difficult problem to solve, I like to get ideas from
other people before making a decision.
10. When I have a problem, I try to find out as much as I can about
the problem before making a decision.
11. If a person stops thinking about a decision for a while, the mind in
fact keeps on working on the decision to be made.
12. When I make a decision, I am often surprised at the results of the
solution I chose.
13. When making a decision, I try to figure out what the results of my
action, both positive and negative, will be.

SLIDE 1
How much do you really know about

decision-making? -- Answers
1 FALSE 8 TRUE
2 FALSE 9 TRUE
3 FALSE 10 TRUE
4 TRUE 11 TRUE
5 TRUE 12 FALSE
6 FALSE 13 TRUE
7 FALSE
How many right answers did you get?
10 - 13: You seem like a born natural!

6 - 9: You have solid decision-making skills.
0 - 5: What confused you? Don’t worry, you will improve by
working more on your decision-making skills!

EXPLANATION OF “HOW MUCH DO YOU REALLY KNOW ABOUT

DECISION-MAKING” QUESTIONS
1. FALSE. People can develop their ability to make effective decisions through
learning and practice. Think of decision-making skills as being like a muscle. The
more you use it, the stronger it becomes.
2. FALSE. Some problems have many good solutions. Some problems have no
good solutions. Unfortunately, sometimes we have to choose between several
“bad” solutions.
3. FALSE. When making a decision, the best approach is to think of as many
solutions as possible before choosing one. The more ideas you think of, the more
likely you will think of a good solution.
4. TRUE. By putting a decision in the form of a question, you clarify the issue and
the question allows you to think of the best possible solutions.
5. TRUE. Not understanding the real issue is often the biggest block to determining
a solution. For example, suppose you have a bad cough. Your real problem may
be that you have pneumonia. On a job, suppose your supervisor is constantly
criticizing you. Perhaps the real problem is that you do not follow instructions.
6. FALSE. Whenever you can, take the necessary time to develop a decision but do
not procrastinate. You might just make more problems for yourself by rushing into
a solution before thinking through the decision carefully.
7. FALSE. The step-by-step method of making decisions helps you avoid errors
whenever possible. By considering many possible solutions and figuring out the
likely results of your solutions, you can prevent errors and avoid the trial and error
method of decision-making.
8. TRUE. By thinking of many alternatives you may be able to combine and improve
them. This approach will help you identify the best solution possible.
9. TRUE. Other people may have had experiences that can help you to solve your
problem. Of course, you must make your own decisions. By asking the advice of
others, you can make better decisions.
10. TRUE. Getting the facts is one of the first steps in making a decision. Sometimes
we think we know more about an issue than we actually do know. That is, we
assume things. If we are wrong in what we assume, we may make a poor decision.
11. TRUE. Have you ever heard the expression “Sleep on it”? Even while you are
doing something else or when you are sleeping, your mind keeps working on the
decision. Also, getting away from a decision for a while helps you come back to it
with fresh ideas.
12. FALSE. One of the steps in decision-making is to try to figure out the results of
your solution. A good decision maker figures out all possible results of a solution
ahead of time.

13. TRUE. An important way of avoiding mistakes is to think: “If I do this, then this will
happen.” Think of a game of checkers or chess. Each move is a small exercise in
problem solving. When deciding on a move, you have to consider what the other
person will do as a result of your move. When making a decision, you may need
to consider what effect your action will have on employees, customers, society
and the environment, as well as your business.

TOPIC 6: Identifying and managing risks
Topic 6: Identifying and Managing

Risks
LEARNING OUTCOMES
 To enable learners to identify the skills needed to assess risks.

 To give learners the opportunity to improve their skill of calculated risk-taking.
 To help learners develop a more positive outlook towards risk-taking.
ACTIVITIES
1. Play the Paper Ball Tossing Game. Use SLIDE 1 to give the instructions.
2. After playing game, Show SLIDE 2 and discuss the questions with the class.
3. Have the learners read HANDOUT 1 as background for the topic on risk-taking.
Ask learners the following questions:
 What is the difference between taking a risk and gambling?
 What could be the rewards of taking a risk?
 Are risks also involved if you avoid making a decision?
 How can risk-taking skills help you become better at handling life
situations?
4. Have learners read HANDOUT 2 and use SLIDE 3 to discuss each factor to
be considered when involved in a risk-taking situation.
5. Have learners complete WORKSHEET 1, which will help them analyse and
manage risks. The worksheet includes an example of what a completed table
could look like. Obviously every table will be different, so what is important is
that the learners appreciate that taking decisions involves a number of rational
steps.

EXERCISE 1
Paper ball tossing game
The paper ball tossing game is used to highlight various factors of risk-taking.
Materials needed
A large container (eg. waste basket, box), pieces of (waste) paper, masking
tape/chalks, a marking pen.
Preparation
1. Fix the container in a place. Then mark off 10 intervals from the container
using the masking tape/chalks. Each interval has a number (1 to 10 from the
nearest to the furthest from the container).
2. Draw the scoring board below on the board before starting the game. Each
throw is recorded as showed in the table.
Player Team 1 Team 2

(eg. 8 – 0) (eg. 5 – 5)
1
…
Total score

Procedure
1. Divide the class into two groups with same or similar numbers of members.
2. Tell the class that the game will be about throwing paper balls. Distribute
(waste) paper (and tapes if you have) to each group, and invite them to use
these materials to make their paper ball(s).
3. Have each group pick up 4-7 players (depending on the size of the class) for
the game.
4. Explain to class that players choose which interval to stand for each throw. If
the player successfully throws the paper ball into the container, the team would
obtain the corresponding score indicated by the interval; if the player fails, the
team do not score.
5. Give players several minutes to practice before the game starts.
6. When the game starts, players from the two groups take turns to make throws,
each player having 3 chances.
7. Record the distance and points on the scoring board. (You may invite a learner
to assist.)
8. When all players finish their throws, add up the scores gained by each team.
Announce the winner.
Note: You can vary the game by having two containers next to each other, one large
and one small. A player who successfully throws a ball into the smaller container
would receive 50% more points. This would provide more risk-taking opportunities.

SLIDE 1
The paper ball tossing game
 Each player has 3 chances, move in order to throw the paper

ball into the basket!
 The further you are from the basket, the higher score you will
win for your team!

SLIDE 2
Discuss the paper ball tossing game
a) How did the members in the winning team decide on the

distance from the basket? Did they change the distances very
often?
b) What problems did the lower scoring team have and what
changes did they make in the way they played the game?
c) What risk taking approaches did the players use?

d) What preparations did your team make before playing the
game and what were your reasons?
e) What information did you have before taking your turn in the
game?
f) If the game were to be played again, what changes would

your team make to improve their scores? Why?
g) What have you learned about taking risks as a result of

playing this game?

EXPLANATION OF THE PAPER BALL TOSSING GAME QUESTIONS
a) How did the members in the winning team decide on the distance from the
basket? Did they change the distances very often?
Answer: The team that takes reasonable risks and changes their distance from the
basket based on experience (their experience and the experience of success of the
other team) usually wins the game.
b) What problems did the lower scoring team have and what changes did they
make in the way they played the game?
Answer: Low scoring teams might be more likely to take gambles and throw from a
far distance, or did not learn from experience.
c) What risk taking approaches did the players use?
Answer: Approaches could be encouraging each other and helping determine from
where each of their team mates should throw.
d) What preparations did your team make before playing the game and what
were your reasons?
Answer: Not all learners would have prepared in the same way. The tactics in
preparation are dependent and the group dynamic and leadership style but could
include groups practicing and deciding on roles. The practice round would help them
to rate their throwers, sequence the turns and strategize on the best distance per
thrower.
e) What information did you have before taking your turn in the game?
Answer: Answers could include: I knew that my best distance was 5 and that I could
only take a risk and move to 6 if my first 5 was in. The coach/leader and the group
dynamic obviously plays a role (if indeed there was leadership!) The lesson to be
learned is that before taking a risk, gather information, discuss with your team, and
practice. The eventual lesson will be reasonable and achievable risk taking.
f) If the game were to be played again, what changes would your team make to
improve their scores? Why?
Answer: The group might vote for a person to be the leader of the team. The group
may set a strategy before starting.
g) What have you learned about taking risks in all phases of your life as a result
of playing this game?
Answer: Find out as much as possible before the time, analyze what you have and
know, minimize the risk.

HANDOUT 1
Calculated risk-taking
Entrepreneurs take calculated and moderate risks. They avoid zero-risk situations
because a lack of challenges usually means a lack of new opportunities, but they also
avoid high-risk situations because the probabilities of success could be low and loss
could be big. Entrepreneurs set high goals and enjoy the excitement of a challenge,
but they do not gamble. In short, the successful entrepreneur likes a difficult but
achievable challenge.
Defining a risk situation

A risk situation occurs when a choice is required between two or more alternatives
whose potential outcomes are not known and must be subjectively evaluated. A risk
situation involves potential success and potential loss. The greater the possible loss
or gain, the greater the risk involved.
Risk-takers make decisions in conditions of uncertainty, and they balance potential
success against potential loss. Choosing a risky alternative depends on:
 how attractive the alternative is,
 the extent to which the risk taker is prepared to accept the potential loss,
 the relative probabilities of success and failure, and
 the degree to which one’s own efforts increase the likelihood of success and
decrease the likelihood of failure.
For example, you have a secure job, earning a good salary, with chances of promotion
every couple of years. You may have the opportunity to buy a firm whose future is
uncertain, but the owner’s earnings are 50% more than you are currently earning as
an employee. The firm may continue to be very successful, or it may fail in one or two
years. Your choice is between staying in a secure position with moderate, predictable
financial and career rewards, or taking a risk and possibly achieving very high financial
and career rewards.
Assessing risk situations

In this situation, a successful entrepreneur will systematically and thoroughly assess
the likelihood of the firm’s success and the extent to which their efforts could influence
this likelihood. They study the market situation, explore profitability in alternative lines
of business, products, machinery and processes, finances, and make comparisons
before making their final decision. They like to influence the outcome through their
own efforts and then having a sense of accomplishment.
Most entrepreneurial traits are interrelated. Risk-taking behavior is related to:

 creativity and innovation, which is an essential part of turning ideas into reality.
 self-confidence: the more confidence you have in your own abilities, the more
able you will be in affecting the outcome of your decisions and the greater
your willingness will be to take risks.
Another factor is the entrepreneurial excitement regarding uncertainty, and the drive
and enthusiasm to ensure that the consequences are successful.
Risk-taking abilities
The risk-taking ability of entrepreneurs is enhanced by:
 their willingness to use their abilities to the fullest extent to move the odds in
their favour;
 their capacity to assess the risk situation realistically and their ability to alter
the odds;
 looking at the risk situation in terms of established goals, and
 comprehensive planning and proper implementation.
The act of risk-taking is an essential part of being an entrepreneur. Entrepreneurs
usually set high goals for themselves, and then use all their abilities and talents to
achieve these goals. The higher the goals, the greater the risks involved. Innovation
in business, which results in higher quality goods and services, is the result of action
by entrepreneurs, who are willing to accept great challenges and take calculated risks.

HANDOUT 2
Steps for analysing a risk situation

While risk-taking is a style of behaviour, calculated risk-taking is a skill that can be
improved. Here are suggested steps for analysing a risk situation.
1. Assess the risk
The first step is to establish whether or not a risk is involved. Is there a potential loss
involved in choosing one particular alternative? For example, you may be faced with
the need for increased production to meet increased demand. Your choices are to:
 stay with the current level of demand;
 purchase more equipment to meet the demand;
 lease more equipment to meet the demand;
 sub-contract production to smaller manufacturers; or
 hire a new employee.
If the business has a good cash flow, strong cash reserves or good credit facilities,
and if demand is certain to grow in the foreseeable future, there is little risk involved
in deciding on any of the alternatives, although the first alternative would cause the
opportunity for profit growth to be ignored. However, continued demand may not be
assured. For example, a product or service may become obsolete because of
competitive innovations; more companies may enter the field; or the market may be
nearing saturation. Furthermore, the business may not be able to afford investing the
amount required without a guaranteed return on it. In this situation, there is clearly a
risk involved in deciding whether to expand production. However, there are clearly
different degrees of risk and corresponding degrees of potential return (success) for
the different alternatives. How can you assess the alternatives?
2. Determine goals and objectives

The next step would be to consider the company’s objectives. A company objective
might be to achieve slow growth, or steady growth, or growth in other product areas.
Is the risk involved consistent with objectives? If it is, the decision-making process
continues, and a detailed assessment of the alternatives is undertaken.
3. Clarify the alternatives

Given that some degree of risk-taking (i.e. a decision to expand production) is
consistent with the company’s objectives, the next step is to survey the various
alternatives. These alternatives should be specified in sufficient detail so that the costs
involved can be assessed objectively. Most costs will be financial costs, but personal,

social and physical costs should be included when appropriate. For example, will an
alternative require excessive personal effort? Will failure lead to a loss in social
prestige? The financial and other costs for each of the viable alternatives should be
specified.
4. Gather information and weigh the alternatives

The next stage is one of intensive information-gathering so that a realistic assessment
of the odds can be made for each alternative. Market estimates should be made for
demand under various predicted conditions. The likelihood of competitive reactions
should be assessed and the effects of these reactions calculated. Various
consequences should be followed through to their logical conclusions:
 If demand nears saturation point, can product modification stimulate
increased demand in new markets?
 Are new markets available if competitive activity decreases current market
share?
 Can the machinery be easily modified to handle other products?
 Are suppliers and subcontractors likely to increase their charges if demand
grows?
The likely return to the company for each alternative should be assessed on the basis
of market information, forecasts of future demand, assessments of competitive
reactions, and various other predictions including the behaviour of those involved in
the situation, such as finance companies or equipment manufacturers.
5. Minimize risks
This crucial step involves a realistic assessment of the extent to which the
entrepreneur can affect the odds. It involves:
 a clear awareness of the entrepreneur’s abilities and the company’s
capacities;
 some creativity in determining how the odds may be changed (increased in
the entrepreneur’s favour);
 the ability to plan strategy and tactics to effect the change; and
 the drive, energy and enthusiasm to implement the strategy.
6. Plan and implement the best alternative

Once an alternative is selected, a plan is then drawn up for its implementation. This
would include a timetable, a clear definition of the goal, a set of contingency plans for
possible outcomes and a feedback process so that necessary changes can be
implemented quickly.

SLIDE 3
Steps for analysing a risk
1 Assess the risk
2 Determine the objectives
3 Clarify alternatives
4 Gather information/Weigh alternatives
5 Minimise risks
6 Plan and implement the best alternatives

WORKSHEET 1
Empower yourself by managing risks

Think of an important personal decision you have to make soon. This decision will
involve some risk-taking. Complete the following table to help you analyse and
manage your risks:
Decision to be taken: e.g. To start a

small business after school
Step 1
Assess the risk.
Is there a risk? What do you stand to
lose?
Step 2
Think of your goals and objectives.
Does the risk you will be taking match
your personal goals?
Step 3
List and unpack the alternatives.
What alternatives are there?
Describe three alternatives and their
risks in some detail.
Step 4
Gather information and weigh the
alternatives.
Find out more and weigh the reasons
for and against each alternative.
Step 5
Reduce the risks.
Choose the best alternative after you
have thought about the costs (personal
or financial).
Step 6
After choosing the best alternative,
think of a three-point plan to carry it out.

AN EXAMPLE OF THE “EMPOWER YOURSELF BY MANAGING RISKS”

FORM
Decision to be taken: e.g. To

Unpack each step in making your
start a small business after
decision
school
Step 1
Not going to university or college for a
Assess the risk.
degree and losing out on a good
Is there a risk? What do you
government or corporate job.
stand to lose?
Step 2
Think of your goals and Yes – I am independent and wish to remain
objectives. so. I would like to earn a good living, but
Does the risk you will be taking also empower others as well by creating
match your personal goals? jobs for them.
Alternative 1:
First go to university
Risk
Spend a lot of money and lose a good
Step 3 business opportunity that may arise
List and unpack the alternatives. Alternative 2:
What alternatives are there? Start working as soon as possible
Describe three alternatives and Risk
their risks in some detail. I might get too comfortable
Alternative 3:
Take a gap year to research my ideas
Risk
Might lose my drive and get side-tracked
Alternative 1:
Information gathered:
Find out about courses and fees
Step 4
Alternative 2:
Gather information and weigh
the alternatives.
Investigate job options
Find out more and weigh the
Alternative 3:
reasons for and against each
alternative.
Speak to my parents/guardians to ascertain
whether they would be able to support me
for an extra year

Step 5
Reduce the risks. Choose the I shall do night-classes and extend my
best alternative after you have course by an extra two years so that I can
thought about the costs work during the day.
(personal or financial).
I have decided to …
Step 6
After choosing the best 1. Do a five year projection in terms of costs
alternative, think of a three-point and income
plan to carry it out. 2. Go to the university/college and enrol
3. Start applying for jobs

TOPIC 7: Leadership and management
Topic 7: Leadership and

Management
LEARNING OUTCOMES
 To help learners identify the role of leaders and managers.

 To make learners distinguish different leadership styles.
 To enable learners to develop leadership skills.
ACTIVITIES
1. Play the Monument Game in accordance with the instructions in EXERCISE

1.
2. Invite learners to read HANDOUT 2. Ask the learners if they have any
questions or comments and deal with any questions in plenary.
3. Let learners define leadership and ask them if they think “leader” is the same
as “manager”, then discuss differences between leaders and managers. Make
notes on the board.
4. Explain that Leadership is the process of communication between people
through which the leader inspires and motivates others to act in way which
leads to achieving common goals, objectives and the overall vision of the
business.
The difference between leaders and managers can be explained as follows:
Leader Manager
Innovates Implements
Develops Maintains
People-orientated Task-oriented
Long-term vision Ensures the work is done
Does the right thing Does things right
Creates a vision for change Instructs people on their work
Communicates goals to people Ensures people reach the goals
5. Invite learners to read the description in WORKSHEET 2 and answer the

questions with either “true” or “false”. Tell them to write the correct answer in
the last column if the answer is false.

EXERCISE 1
The monument game

The monument game aims demonstrates the differences between leadership styles.
Materials needed
 A few sets of Leadership Style Cards (HANDOUT 2) depending on the size
of the class (1 set is needed for every 24 learners)
 1 photocopied Observer Feedback Report for each team (WORKSHEET 1)
 One or two photocopied “Information Regarding the Game Task” per team.
 A watch to record time.
Procedure
1. Depending on the size of the class, divide the class into teams of 5 to 7
participants. There should be at least four teams to play the game.
2. Have each team select two members of the team to be the leader and the
observer.
3. Have the team leaders come to the front of the class to receive one of the four
leadership style strips (HANDOUT 1). Tell them that they will need to enact
the leadership style given in their groups while solving a relatively complicated
problem. Let leaders read their leadership style strips, and tell them not to
share this information with team members (including the observer).
4. Have the observers come to the front of the class and receive a copy of the
Observer Feedback Report (WORKSHEET 1). Tell them that they are
expected to give feedback on the reports while the game is being played. Let
the observers review the Observer Feedback Report sheets. Tell observers to
stand behind each team to observe the interactions among the team members,
and takes notes of the behaviours of the leader and the followers according to
the criteria on the Observer Feedback Report.
(Reminder: observers do not know which leadership style they will be
observing – they just observe and give feedback.)
5. Have learners read the instruction (HANDOUT 2). Share the Information
Regarding the Game Task with the teams (1 - 2 copies per team). Give teams
enough time so that most, if not all the teams, have solved the problem. If a
group has completed the task, they put up their hands and the teacher notes
the time and the sequence of team completion.
6. It is estimated that the process could take 20 to 40 minutes depending on the
leadership style. The team that finishes the game first and has the correct
answer wins the game.

7. Invite the winning team to explain what they did, i.e. what their winning strategy
was. Other teams, who solved the problem in a different way, are also given
the chance to share their strategy.
8. Invite observers come to the front of the class and share their insights. Sum
up the leadership traits on the board.
9. Discuss with the class questions on SLIDE 1.
10. Summarize the game by indicating that the leadership style used will depend
on the specific situation. In most cases, a Democratic Leadership Style will be
the most productive. If the time is short for playing the game, an Autocratic
Leadership Style might be most productive.
Solution and rationale of the game task:

The day the monument was completed is Tuesday.
1. The dimensions of the monument indicate that it contains 50,000 cubic feet of
stone blocks.
2. The blocks are one cubic foot each. Therefore, 50,000 blocks are needed.
3. Each worker works nine periods in a day (two periods are used for rest).
4. Each worker lays 150 blocks per period. Therefore, each worker lays 1,050
blocks per day.
5. There are eight workers per day. Therefore, 8,400 blocks are laid per working
day.
6. The 50,000th block is laid during the sixth working day.
7. Since work does not take place on Friday or Saturday, the sixth working day
is Tuesday.

HANDOUT 1
Leadership styles
Democratic Autocratic/Authoritarian
Language likely used: Language likely used:
• “Everybody must say how they • “There is only one person who will be
feel – we are all equal.” making the final decision – and that’s
• “Hmm… I hear what you say – me.”
that’s a great idea!” • “If you have anything to say, ask for my
• “Let me quickly sum up so that we permission by putting your hand up.”
all understand…” • “Stop right there…I am in charge and I
• “We seem to be disagreeing … will not allow you to continue on that
let’s get back to that point later topic – it’s wasting our time.”
and discuss it as a group…” • “Let’s go back to the point I was
• “Let’s vote – all our opinions are making…”
important!” • “We will solve the problem in this
way….we are wasting time by thinking
Body language: friendly, generous, of other ways.”
eye contact with group, leaning
forward to explain, open palms to Body language: assertive hand
strengthen what you say, etc. movements
(no! be careful = finger pointing), impatient,
pen in hand, unfriendly or at least neutral.
Laissez-faire/ Free Bureaucratic

Rein Language likely used:
Language likely used:
• “Here are the rules. Let’s move around
the group…Tom? Jane?...”
• “Jenny, will you take charge? Sort
• “Please do not interrupt, Peter! It’s not
it out! You don’t need my help!”
your turn yet! Rules are rules…”
• “You decide and do whatever you
• “No speaking out of turn.”
want.”
• “Let’s keep to the agenda!”
• “Go well, guys! Make a good
decision. Bye!”
Body language: often looks at watch and
agenda, irritated if someone speaks out of
Body language: not very engaged in
turn, points at the agenda, points to each
the process of solving the problem,
person to give them a turn to speak.
e.g. little input, delegate power,
sometimes do not focus on the
process by looking around or texting
on the phone.

WORKSHEET 1
Observer feedback report

Not
Exce-
Criteria at Fair Good Additional notes
llent
all
The team:
thought creatively to solve the

problem
members were all involved in

solving the problem
members influenced each

other in the team work
The leader:
categorized the information to

solve the problem
(What strategy did s/he
used a definite strategy to use?)
solve the problem
(How?)
inspired and motivated others
on the team
(What was the effect?
was willing to give orders and Good? Bad?)
direction to the team
communicated effectively
encouraged teamwork
took responsibility for the

result of the task
was task-oriented as
opposed to people-oriented
was influenced by time

HANDOUT 2
The monument game - instruction

1. Make sure your team has a leader and an observer. The leader will start the
problem solving process enacting a specific leadership style assigned, and the
observer will stand behind your team to observe and fill the Observer Feedback
Report.
2. Work together within your team to solve the game task.
3. Once your team has solved the problem, put up your hands so that your teacher
can jot down your time. Think about the questions listed on the slide if you have
finished ahead of time.
The story
A large ancient village site has been discovered recently on an island. In the main
square of the village, there is a monument in the form of a rectangular obelisk. Oral
tradition has suggested that the monument was built during the first two weeks of
January to honor the founding of this large village. The actual structure was built in
less than two weeks.
You team wants to determine on which day of the week the monument was completed
so that the finalization of the monument can be celebrated each year in the future.
Information has been discovered that the building of the monument began on January
1st. To help solve this problem, your team will be given information that is related to
the building of the monument. Share information with all your teammates.

Information regarding the game task

Tip: You can categorize the following information by separating each piece.
Day four in the week is called The length of the monument is fifty
Thursday. meters.
The width of the monument is ten

Day five in the week is called Friday.
meters.
Day six in the week is called Saturday. The monument is built of stone blocks.
There are six days in the ancient

Each block is one cubic meter.
village’s week.
The total working day has nine periods. Day one in the week is Monday.
The team rests for two periods during

Day two in the week is called Tuesday.
the working day.
The team works for seven periods Day three in the week is called
during the working day. Wednesday.
One member of each team makes sure

Workers each lay 150 blocks per
the bricks are the right size and does
period.
not lay blocks.
When work is taking place on building

The government decreed that no work
the monument, there is only one team
takes place on Friday.
of ten workers on site.
One member of each team is a Because of the religion no work takes

supervisor and does not lay blocks. place by the teams on Saturday.

The basic measurement of time in the The height of the monument is greater
ancient village is a day. than its length or its width.
A work day in the ancient village is Only one team of workers at a time can
divided into work periods and rest work on the construction of the
periods. monument.
The height of the monument is one Volume (cubic meters) =

hundred meters. length×width×height

SLIDE 1
Discuss the monument game
a) Did you feel the role you played (as leader, observer, or team
member) suited you? Explain why.
b) If you were a team member, how did you react to the leader’s
approach?
c) If you would have preferred another role, explain which role
and why.
d) Do you think your leader was a good manager?
e) List three things that the leader did well.
f) What could the leader have done to improve the team’s
performance?
g) Which leadership style do you think would have solved the
problem most efficiently? Explain why.
h) Did other natural leaders emerge within the team while the
game was being played?
i) Did somebody in the team try to manage the process? Who?
Was it successful?

EXPLANATION OF “DISCUSS THE MONUMENT GAME”
a) Did you feel the role you played (as leader, observer, or team member) suited
you? Explain why.
Answer: Learners’ answers will vary, but it is important that they are able to
distinguish between the roles they played in the group, as well as what roles all the
other members played. Learners will know themselves and thus should be open and
honest about whether the role they played suited them.
b) If you were a team member, how did you react to the leader’s approach?
Answer: Learners who were team members will need to be open and critically
analyze the leader’s approach. In answering learners need to specify what leadership
style came through in their group, and then they need to mention whether it was
appropriate or not, and why they feel this way.
c) If you would have preferred another role, explain which role and why.
Answer: Learners’ answers will vary, but it is important that they are open and honest
about what role they would have liked to have played – leader (using a specific
leadership style), observer or team member.155
d) Do you think your leader was a good manager?
Answer: Learners’ answers will vary, but emphasis should be placed on
differentiating between a leader and a manager.
e) List three things that the leader did well.
Answer: Learners’ answers will vary, but things that a leader could have done well
include:
 Listened attentively
 Encouraged participation
 Thought creatively
 Communicated effectively
 Empowered the group
 Took charge
 Any other relevant answer related things the leader did well.
f) What could the leader have done to improve the team’s performance?
Answer: Learners’ answers will vary, but emphasis should be placed on why the
group did not perform to optimum level or what could the leader have done differently
to achieve an optimum level of output. Things that a leader could improve on include:
 Listen more attentively
 Encouraged more participation
 Think more creatively
 Communicate more effectively
 Empower the group more

 Take charge
 Any other relevant answer related things that the leader can improve on.
g) Which leadership style do you think would have solved the problem most
efficiently? Explain why.
Answer: Learners are open to state the leadership style they feel would work if it is
justified, but generally the best leadership style for a task of this nature would be the
Democratic Leadership because everyone can work together and solve the problem
in an effective and timely way.
h) Did other natural leaders emerge within the team while the game was being
played?
Answer: Learners’ answers will vary, but emphasis should be placed on whether
other natural leaders emerged, as well as whether the incumbent leader was open to
other leaders and empowered them, or did he/she try to pacify them and take control.
i) Did somebody in the team try to manage the process? Who? Was it
successful?
Answer: Learners’ answers will vary but again, special attention should be placed on
the different roles leaders and managers play, as well as identifying who managed
and who led the group.

WORKSHEET 2
Leaders and managers

Read each description of leaders and managers in the table below. Do you agree with
them or not? Write your ideas and correct those that you think are false.
Description T/F Correct statement
Some people can be leaders and

1
managers.
A manager is usually “born” but a

2
leader is usually “made”.
3 A leader carries out decisions.
Leaders are more important to the

4
success of a business than managers.
People follow a leader out of their own

5
choice.
A leader sets the new vision, while a

6
manager carries it out.
A manager is a good administrator and

7
managers are usually people-oriented.
Leaders control people by setting rules

8 and processes which staff has to
follow to reach the company's vision.
There are probably more inspirational

9
leaders than inspirational managers.
A manager’s role could change to a

10
leadership role.

Leaders are motivators, innovators

11
and clear communicators.
Managers have the important task of

12 obtaining acceptance or getting “buy
in” after a change has been made.
A manager is finally accountable for
13 the success or failure of the
organisation.
A manager focuses on systems and

14
structures.
Power in leadership refers to the

15
leader’s ability to hire and fire people.

EXPLANATION OF THE “LEADERS AND MANAGERS” TABLE
Description T/F Correct statement
Some people can be leaders and

1 T
managers.
A manager is usually “born” but a A leader is usually “born” but

2 F
leader is usually “made”. a manager is usually “made”.
A manager carries out

3 A leader carries out decisions. F
decisions – a leader leads.
Leaders are more important to the

4 F Both are crucial.
success of a business than managers.
People follow a leader out of their own

5 T
choice.
A leader sets the new vision, while a

6 T
manager carries it out.
A manager is a good administrator and Managers are usually task

7 F
managers are usually people-oriented. oriented
Leaders control people by setting rules

8 and processes which staff has to F Managers do.
follow to reach the company's vision.
There are probably more inspirational

9 T
leaders than inspirational managers.
A manager’s role could change to a

10 T
leadership role.
Leaders are motivators, innovators

11 T
and clear communicators.
Managers are concerned with

control, organizing, planning,
Managers have the important task of
while leaders are the main
12 obtaining acceptance or getting “buy F
communicators and
in” after a change has been made.
persuaders when there is a
new direction to be taken.

The leader is – authority and

A manager is finally accountable for
responsibility can be
13 the success or failure of the F
delegated, but accountability
organisation.
not.
A manager focuses on systems and

14 T
structures.
No, power refers to the

Power in leadership refers to the
15 F leader’s ability to influence
leader’s ability to hire and fire people.
people.

Topic 8: Cooperation and teamwork
LEARNING OUTCOMES
 To demonstrate the importance of cooperating with others.

 To enable learners to develop the skills to co-operate with teammates in order
to achieve success.
ACTIVITIES
1. Play the Broken Squares Game according to the instructions in EXERCISE 1.

2. Show SLIDE 2 and have the class discuss the questions.
3. Let learners read HANDOUT 1. Ask the learners if they have any comments
or questions and deal with any questions in plenary.

TOPIC 8: Cooperation and teamwork
EXERCISE 1
The broken squares game

In this exercise teams of 5 people work together to form 5 squares of equal sizes
using the pieces given to them. No one can talk or use non-verbal communication
during the game. Team reach goals by cooperating and dividing tasks among
themselves.
Materials needed
Sets of 5 envelopes containing broken squares for each group of learners prepared
according to the below “Directions for making a set of broken squares”.
Preparation
1. Try this game before presenting it in class to become familiar with some problems
learners are likely to face. For example:
 some squares can be formed which are not the correct size;
 some squares can be formed which are the correct size, but which will
prevent all five squares from being completed.
 There is only ONE way to form all 5 squares.
2. Arrange the desks in the classroom to accommodate groups of 5 learners. This
game can also be played outside or in a school hall if your classroom is too small.
Make sure that the groups cannot see the puzzle-solving result of other groups.
Procedure
1. Divide the learners into groups of 5 members. Invite learners who are not part of
the groups of five to fulfil the role of observers.
2. Showing SLIDE 1, tell the groups that the goal of the task for each group is to form
five squares of equal size using all the pieces given to them. The pieces of each
square are mixed and placed into different envelopes.
3. Distribute the set of five envelopes (containing the pieces) to each group, one set
per group. Make sure that each group member receives one envelope.
4. Tell the class that the group members can exchange or share their original pieces
in their envelopes with their teammates.
5. Emphasize that: 1) This is a non-verbal task, which means there should be no
talking, pointing, or any other kind of communication between group members; 2)
Groups work independently without seeing the results of other groups.
6. Make sure that everyone understands the game instruction.

7. Monitor the groups (along with the observers) during the exercise to answer
questions of the participants and ensure that the rules are exactly followed.
8. The activity ends when all teams have completed the puzzle.
9. Call upon the observers to share their comments and observations.
10. To end the game, you may declare the winner. The first group that was able to
form five squares of equal size can be declared to be the winner.
Directions for making a set of broken squares

A set consists of five envelopes containing pieces of cardboard cut into different
patterns which, when properly arranged, will form five squares of equal size. One set
should be provided for each group of five persons. To prepare a set, cut out 5 squares
of the same size (for example 6” × 6”). Place squares in a row and mark them as
below, penciling letters lightly so they can be erased.
The lines should be drawn in such a way that, when the pieces are cut out, those
marked A will be exactly the same size, all pieces marked B the same size, etc.
Several combinations are possible to form one or two squares, but only one
combination will form all five squares, each 6” × 6”. After drawing the lines on the
squares and labeling the sections with letters, cut each square along the lines into
smaller pieces to make the parts of the puzzle. Label the five envelopes 1, 2, 3, 4,
and 5. Distribute the pieces into five envelopes as follows:
Envelope 1 — I, H, E Envelope 2 — A, J
Envelope 3 — A, A, A, C Envelope 4 — G, B, F, C
Envelope 5 — D, F

Erase the penciled letter from each piece and write, instead, the number of the
envelope it is in. This makes it easy to return the pieces to the proper envelope for
subsequent use. Each set of five squares may be made a different colour of cardboard.

SLIDE 1
Play the broken squares game

 Group Target:
Form 5 squares of equal size using all the pieces
given to you.
 Please note:
No talking with your teammates.
The first group to form five squares of equal size is the
winner.

SLIDE 2
Discuss the broken squares game
a) What is the meaning of cooperating to solve a problem?

b) How can the game relate to a work situation (each team could
be considered a work organization)?
c) What happens when a person refuses to give or receive help
in a job situation?
d) Why should workers ask for help when they need it?
e) What did you enjoy about being part of a team?
f) What were your greatest frustrations as a member of a team?
g) What, in your opinion, makes teams perform better? Think of
three rules for better teamwork.

EXPLANATION OF THE “DISCUSS THE BROKEN SQUARES GAME”
a) What is the meaning of cooperating to solve a problem?
Answer: The following points may be stressed:

• Each person needs to understand the total problem.
• Each individual needs to understand how to help solve the problem.
• Each person needs to be aware of how others can help solve the problem.
• Each person needs to recognize the problems of others in order to help them make
their best contributions.
b) How can the game relate to a work situation (suggest that each team could
be considered a work organization)?
Answer: Business operates as an organization of people to accomplish specific

objectives. All members of the organization need to be in harmony with these
objectives. An organization is like a living person. If one part of the body is not
functioning correctly and at its fullest, such as a broken arm, the rest of the
organization (body) has to compensate for the problem. All team members need to
be motivated to maximize team output.
c) What happens when a person refuses to give or receive help in a job situation?
Answer: The possibility of reaching individual and/or organizational goals will be

minimized. Learners need to know that, as team members, they must be willing to
give and receive help to achieve group goals as well as their individual tasks. When
people refuse to give help to others, it is more difficult to reach group goals and also
to complete individual tasks within an organization.
d) Why should workers ask for help when they need it?
Answer: For some workers, asking for help means that they are not able to do a task
or that the employer may think that the worker did not understand the instructions. In
business, workers should not be afraid to ask for help form others to complete their
individual tasks. If one team member operates at a low level of involvement, the
efficiency and effectiveness of the team effort will not be maximized. All members of
a team need to be focused on achieving the goals.
e) What did you enjoy of being part of a team?
Answer: Usually they will mention the fun and the fact that there could be an equal
workload if everyone contributed.
f) What were your greatest frustrations as a member of a team?
Answer: One person did all the work, it was chaotic, not all the information was
available, cliques were formed and one group took over, etc.

g) What, in your opinion, makes teams perform better? Think of three rules for
better team work.
Answer: Good leadership and well-defined roles, a time limit for the activity,
involvement of all, etc.
* There could be a debate about the value of group work. However, learners have to
see the value of group work as it replicates what happens in the real world, in business
and also should the learner become formally employed. Their answers will give you
an indication of how progressively they are thinking.

HANDOUT 1
The power of the team

We need to know that, as a team member, we must be willing to give and receive help
to achieve group goals as well as our own individual tasks. A successful worker is
willing to accept help from others in the form of suggestions, criticism, or assistance
in completing a task. A successful worker is also willing to give help in the form of
ideas, suggestions, and “lending a hand.” When people refuse to give help to others,
it is more difficult to reach group goals and also to complete individual tasks within an
organization.
In business, workers should not be afraid to ask for help from others to complete their
individual tasks. An organization is like a living person. If one part of the body is not
functioning correctly and at its fullest, such as a broken arm, the rest of the
organization (body) has to compensate for the problem.
All members of a team need to be focused on achieving the goals. If one team
member operates at a low level of involvement, the efficiency and effectiveness of the
team effort will not be maximized. All team members need to be motivated to
maximize team output.
0
1 What is entrepreneurship?
2 Who are entrepreneurs?
3 Entrepreneurial qualities
4 How do I find a business idea?
5 How do I start a business?
6 How do I run a business?
7 Next steps
8 How do I develop my business plan?
Facilitator’s Guide
Learner’s Workbook
ISBN XX-XXXX-XXX-X
Illustrations: Gianmaria Roccia – Photographs: ............

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B

International Labour Office, Geneva

Know About Business

First published 1996

What is Know About Business?

Know About Business (KAB) is an entrepreneurship education programme developed

Know About Business 3

Authors and acknowledgements

4 Know About Business

 To foster learners’ entrepreneurial qualities.

1. Setting entrepreneurial goals

Know About Business 5

Topic 1: Setting Entrepreneurial

SUGGESTED TIME 2 hours

 Learners become more systematic in setting their goals.

6 Know About Business

Know About Business 7

How to set goals?

 Your goals should be your own. They should be about

 Goals should be specific. They should be clear, concrete

 Goals should be measurable. You need to be able to know

 Goals need to be reviewed periodically to measure the

 Goals should be set for a definite time period. Setting

 Goals should include both short-term and long-term goals.

NOTE: You can practice setting personal goals using the

8 Know About Business

Case study: help Jeanette set goals

Know About Business 9

10 Know About Business

Setting entrepreneurial goals

b. Goals should be specific.

c. Goals should be measurable.

d. Goals should be set for a definite time period.

Know About Business 11

12 Know About Business

Setting personal goals

Know About Business 13

Case study: Tui, becoming an

14 Know About Business

Think about following questions:

Know About Business 15

Topic 2: Managing Time

SUGGESTED TIME 2.5 hours

 Learners understand that time is one of the entrepreneur’s most important

16 Know About Business

6. Show SLIDE 1 on time-management tips and SLIDE 2 on situations to avoid.

Know About Business 17

Adapted from activities suggested by Trainers Warehouse (2011).

18 Know About Business

Task Rank (A, B or C) Time needed

2. Set up a schedule for the day to complete these tasks:

Time Tasks to complete

Know About Business 19

3. At the end of today…

20 Know About Business

2. Complete high priority tasks first

3. Delegate tasks to others

4. Maintain an orderly work space

5. Be ready to “say no”

7. Work in blocks of time

Know About Business 21

8. Use the telephone

22 Know About Business

 Your goals should be your own. They should be about

TIME CHART Date: //___