Professional Documents
Culture Documents
BSM/18/18
ENTREPRENEURSHIP
ENTREPRENEURSHIP
An entrepreneur is an individual who creates a new business, bearing most of the risks and
or service and bearing the risks involved between the seller and buyers.
The unemployment rate in Kenya as at 2014 was 40% of the total population, with a large
percentage comprising youth and women. This has led to innovations and entrepreneurial
activities with the aim of improving their standards of living, especially in the informal
sector. The inability of a large proportion of school leavers to secure jobs has left many to
Economic growth:
The Kenyan economy is expected to continue growing strongly given the high infrastructural
being a developing nation, the opportunities for entrepreneurship brought about by economic
growth are large and far-reaching ranging from technology to agriculture, manufacturing to
service, education to finance and real estate to infrastructure.
as M-Pesa have greatly enhanced convenience and the ease of doing business.
Government initiatives:
The government has come up with several initiatives aimed at promoting entrepreneurship in
the country, with the most recent being the Uwezo Fund, which targets the youth, women and
Education levels
We have seen a lot of growth in the tertiary education sector with a lot of new campuses
being opened up. This will definitely lead to a lot of growth in the knowledge base and is
Technological advancement
New emerging technologies has enabled people to think outside the box. This has lead to the
methods on how these goals can be attained and the time frame within which these goals
needs to be achieved.
BUSINESS MODEL. It is an outline of how a company plans to make money with its
software such as MS Excel to forecast a business’ financial performance into the future.
BUSINESS CANVAS MODEL. This is a strategic management tool that lets you
i. Title page
This captures the legal information of the business which includes the registered
business name, physical address, phone number, email address, date and the company
logo
It provides a summary of the entire business plan. It should be short and to the point
Provides information about the specific industry that the business operates in.
revenues. Also shows company’s position in the industry and how it will compete in
Details the target market for company’s product section confirms that company
understands market and has analyzed existing market to determine that there is
adequate demand to support its proposed business model. Market analysis includes
market needs.
v. Sales and marketing plan
Details how the company plans to sell its product to the target market. It details
company’s advertising and promotion activities, pricing strategy sales and distribution
Provides an outline of company’s legal structure its management team and external
institutions investors. It should demonstrate that the proposed business is viable and
Includes any additional information that banks and investors may be interested in or
1. To prove that you’re serious about your business. A formal business plan is necessary
to show all interested parties — employees, investors, partners and yourself — that you are
committed to building the business. Creating your plan forces you to think through and select
2. To establish business milestones. The business plan should clearly lay out the long-term
milestones that are most important to the success of your business. To paraphrase Guy
Kawasaki, a milestone is something significant enough to come home and tell your spouse
about (without boring him or her to death). Would you tell your spouse that you tweaked the
company brochure? Probably not. But you’d certainly share the news that you launched your
3. To better understand your competition. Creating the business plan forces you to analyze
the competition. All companies have competition in the form of either direct or indirect
you don’t currently have competitive advantages, to figure out what you must do to gain
them.
4. To better understand your customer. Why do they buy when they buy? Why don’t they
when they don’t? An in-depth customer analysis is essential to an effective business plan and
to a successful business. Understanding your customers will not only allow you to create
better products and services for them, but will allow you to more cost-effectively reach them
business plan helps to bring previously “hidden” assumptions to the foreground. By writing
them down and assessing them, you can test them and analyze their validity. For example,
you might have assumed that local retailers would carry your product; in your business plan,
you could assess the results of the scenario in which this didn’t occur.
6. To assess the feasibility of your venture. How good is this opportunity? The business
plan process involves researching your target market, as well as the competitive landscape,
and serves as a feasibility study for the success of your venture. In some cases, the result of
your planning will be to table the venture. And it might be to go forward with a different
a critical question to answer in writing, for yourself and your investors. Documenting the
revenue model helps to address challenges and assumptions associated with the model. And
upon reading your plan, others may suggest additional revenue streams to consider.
8. To determine your financial needs. Does your business need to raise capital? How
much? One of the purposes of a business plan is to help you to determine exactly how much
capital you need and what you will use it for. This process is essential for raising capital for
business and for effectively employing the capital. It will also enable you to plan ahead,
9. To attract investors. A formal business plan is the basis for financing proposals. The
business plan answers investors’ questions such as: Is there a need for this product/service?
What are the financial projections? What is the company’s exit strategy? While investors will
generally want to meet you in person before writing you a check, in nearly all cases, they will
10. To reduce the risk of pursuing the wrong opportunity. The process of creating the
business plan helps to minimize opportunity costs. Writing the business plan helps you assess
the attractiveness of this particular opportunity, versus other opportunities. So you make the
best decisions.
11. To force you to research and really know your market. What are the most important
trends in your industry? What are the greatest threats to your industry? Is the market growing
or shrinking? What is the size of the target market for your product/service? Creating the
business plan will help you to gain a wider, deeper, and more nuanced understanding of your
marketplace. And it will allow you to use this knowledge to make decisions to improve your
company’s success.
12. To attract employees and a management team. To attract and retain top quality talent,
a business plan is necessary. The business plan inspires employees and management that the
idea is sound and that the business is poised to achieve its strategic goals. Importantly, as you
grow your company, your employees and not you will do most of the work. So getting them
13. To plot your course and focus your efforts. The business plan provides a roadmap from
which to operate, and to look to for direction in times of doubt. Without a business plan, you
may shift your short-term strategies constantly without a view to your long-term milestones.
You wouldn’t go on a long driving trip without a map; think of your business plan as your
map.
14. To attract partners. Partners also want to see a business plan, in order to determine
whether it is worth partnering with your business. Establishing partnerships often requires
time and capital, and companies will be more likely to partner with your venture if they can
15. To position your brand. Creating the business plan helps to define your company’s role
in the marketplace. This definition allows you to succinctly describe the business and position
the brand to customers, investors, and partners. With the industry, customer and competitive
insight you gain during the business planning process, you can best determine how to
16. To judge the success of your business. A formal business plan allows you to compare
actual operational results versus the business plan itself. In this way, it allows you to clearly
see whether you have achieved your strategic, financing, and operational goals (and why you
difficult economic conditions, if your current sales and operational models aren’t working,
you can rewrite your business plan to define, try, and validate new ideas and strategies.
18. To document your marketing plan. How are you going to reach your customers? How
will you retain them? What is your advertising budget? What price will you charge? A well-
documented marketing plan is essential to the growth of a business. And the marketing
strategies and tactics you use will evolve each year, so revisiting your marketing plan at least
annually is critical.
19. To understand and forecast your company’s staffing needs. After completing your
business plan, you will not be surprised when you are suddenly short-handed. Rather, your
business plan provides a roadmap for your staffing needs, and thus helps to ensure smoother
expansion. Importantly your plan can not only help you understand your staffing needs, but
ensure your timing is right as it takes time to recruit and train great employees.
and creative interviewing, you will likely see your business in a different light. As a result,
you will often come up with new ideas for marketing your product/service and running your
business. It’s coming up with these ideas and executing on them which is often the difference
between a business that fails or just survives and one that thrives.
THEORIES.
•The great person school of thought regards an entrepreneur as being the great person. The
focus is mostly on the career path and the success stories of famous entrepreneurs. The
presented image is that of an individual charged with energy, power, and success.
•The psychological school of thought focuses on the distinctive traits, special psychological
accomplishment.
and the introduction, in a given new environment, of new alternative means of production
•The management school of thought is focused on the pursuit and the materialization of
•The leadership school of thought is interested in leadership: It states that entrepreneur are
leaders who assign objectives to and guide their employees towards attaining results.
Entrepreneurs are meant to provide support to partners in their personal development, and
corporates are deprived of innovation and they have less capacity to respond to the ever
through focusing on opportunities, which can allow corporates to innovate, develop, and to
1. Cultural Entrepreneurship
Cultural Entrepreneurship is where entrepreneurs are cultural change agents and resourceful
visionaries who organize cultural, financial, social and human capital, to generate revenue
from a cultural activity. Their innovative solutions result in economically sustainable cultural
enterprises that enhance livelihoods and create cultural value and wealth for both creative
The term cultural entrepreneurship applies to the creation of any product or service that
primarily targets our tastes, whether it’s our taste in fashion, movies, music, stories, games,
cuisine, or opinions. A newspaper is part of media; but a magazine like People or Vanity Fair
Culture, more than almost any other industry, is almost always in the private domain; only in
very unfortunate countries, is culture significantly done by the public sector. So, culture is
produced by private individuals who spend effort creating it, marketing it, and try to make a
These industries are well set, though most run on low margins and the companies involved
entrepreneurship.
2. Technopreneurship
who are intelligent, creative, technology savvy and passionate and have an appetite for
teamwork.
dynamic, dares to be different and takes the unexplored path, and very passionate about his
work”. He takes challenges and strives to lead his life successfully. He has no fear of failure
and hence takes failure as a learning experience, a stimulator to see things differently.
A Technopreneur undergoes an organic process of continual improvement and tries to
redefine the dynamic digital economy. Technopreneurs make use of technology to come out
3. International Entrepreneurship:
across the national boundaries. It includes exporting, licensing or opening sales office in
another country. The main purpose of international entrepreneurship is to satisfy the needs
startups that from their inception engage in international business, thus viewing their
domestic market, is declining and the demand arises for the products from international
market. Entrepreneur can sell his products it has reached the maturity stage of their life cycle
Entrepreneur in the process of satisfying foreign customers have to produce products as per
their quality expectation. He will not only produce quality product in international market,
but also in national market. Thus, he can improve his entrepreneurial competitiveness and
enhance reputation.
a) Sole proprietorship
It is a type of enterprise owned and run by one person and in which there is no legal
A Private Limited Company is a legal entity in its own right, allowing the business
owner to keep their assets separate from the business itself. This means that the
business owners aren’t subject to any personal liability, as their work is undertaken as
and, therefore has a separate legal existence and the liability of whose members is
limited. Public limited companies are listed on the stock exchange where it’s
e) Cooperatives
people who use its products, supplies or services. It can also be defined as an
economic, social, and cultural needs and aspirations through a jointly-owned and