Entrepreneurship Lecture Notes 2021 - 2022 Academic Yr Acf Baf Bam HRM Final

COURSE TITLE & Code:
ENTREPRENEURSHIP
(ACF212/BAF211/BAM216/HRM211)
COURSE TYPE (CORE/FOUNDATION): CORE
COURSE CREDIT HOURS: THREE (3)
COURSE LEVEL: DIPLOMA/BACHELORS DEGREE
SEMESTER THE COURSE IS DELIVERED: FIRST (1ST)
COURSE YEAR: 2 & COURSE UNITS: 5

STUDY FORM (FACE-TO-FACE OR ONLINE): FACE-TO-FACE
CLASS MEETINGS: SATURSDAYS 15:30 – 17:30 = CLASS H
TUESDAYS 08:30 – 10:30 = CLASS H

INSTRUCTOR NAME & CONTACT INFORMATION:
MOMOH CONTEH
(M.ED, MBA, BSC. [DIV.1])
+232-78-82-52-50
mconteh2012@gmail.com
Office hours:
MONDA – SATURDAY
(on appointment)
course prerequisites:
• Five (5) credits and English language inclusive at gce “o” Levels or wassce
• You must be in the second year of your program in the ACF/BAF/BAM/HRM

discipline
Topics to Cover (Course Outline)
UNIT–1: EXPLORING ENTREPRENEURSHIP
1.1 Origin and Concepts of Entrepreneur and Entrepreneurship
1.2 Entrepreneurial Motivations and Variables
1.3 Entrepreneurial Creativity and Innovation
1.4 Concept of Business and Business Environment
1.5 Forms of Business Ownership and Legal Implications
UNIT–2: ENTREPRENEUR ROLE IN SOCIETY

2.1 Entrepreneurs' responsibilities to individuals
2.2 Entrepreneurs' environmental responsibilities
2.3 Entrepreneurs' community responsibilities
2.4 Influence relationships between the global economy and the local
economy has towards the choice of consumer buying patterns
UNIT–3: VISION, MISSION, OBJECTIVES, GOVT./BUSINESS REGULATORY AGENCIES

3.1 The Roles of Vision and Mission In Entrepreneurship Development
3.2 The Roles of Objectives In Entrepreneurship Development
3.3 The Roles of Government & Business Regulatory Agencies In Sierra Leone
Topics to Cover (Course Outline) CONT…
UNIT–4: PRINCIPLES FOR SUCCESS IN ENTREPRENEURSHIP
4.1 Opportunity Recognition or Feasibility Studies and Market Analysis
4.2 Business Plan Designed – Writing Business Plan
4.3 Marketing Plan and Sales
4.4 Analyzing and Generating Finances
4.5 Business Ethics and Customer Relationship Management
4.6 Management of Entrepreneurial Human Resources
4.7 Management of Other Entrepreneurial Resources
UNIT–5: ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT
5.1 Introduction
5.1 Origin of Sierra Leone
5.2 Development of entrepreneurship in Sierra Leone
5.3 Peculiarities of Sierra Leonean business environment and Sierra
Leonean entrepreneurs.
5.4 Identifying Some Successful Sierra Leonean Entrepreneurs
5.5 Economic Development through Entrepreneurship
5.6 Sierra Leone’s Medium-Term National Development Plan (MTNDP)
2019-2023
5.7 Business Start-up
Course Overview and Description
 ENTREPRENEURSHIP is an interdisciplinary course
designed to educate students on
1. how to think and act entrepreneurially – i.e., See a problem and
find the solution through entrepreneurial engagement;
2. how to start-up and operate a business while in school – thus,
turning your learning into earning (provide a source of income for
yourselves, families and those they would be employing);
 The course is built on cross-curricular academic skills, by

integrating inquiry-based learning and business tools that
will enable students to analyze, evaluate, create, develop
and pilot small businesses in a safe business environment
or campus environment.
Course Overview and Description (CONT…)
 The course ensures those who manage & operate a small
business bring their products directly to the consumer(s)
through the local marketplace or present the venture to
potential investors for financing.
 The course reinforced Concepts and skills by a strong
emphasis on hands-on experiences.
 The course also includes applications to society,
individuals, and the utilization of technology.
 The course context is in conjunction with the Sierra Leone
Opportunities for Business Action (SOBA) and others.
The course reinforced Concepts and skills by a
strong emphasis on hands-on experiences.
Course Overview and Description (CONT…)
 The course also includes applications to society, individuals,
and the utilization of technology.
 The course context is in conjunction with the Sierra Leone
Opportunities for Business Action (SOBA) and others.
 This module includes a broad series of lessons and activities
that offer a variety of modalities for ultimate student
engagement and content retention.
 Each unit contains a series of lessons that include
introduction of content, virtual demonstration of that
content, and repeated opportunity to practice that content,
along with a quiz per lesson, test per unit, and final exam at
the end of the course.
COURSE LEARNING GOALS
Learning Goal 1:
• At the end of the course student should be able to
understand the various concept which includes:
 Entrepreneurship, Entrepreneur, and Social Entrepreneur
 Business, Business Environment, Business Plan, and
Business Ethics
 Entrepreneurial Motivation, Entrepreneurial Variables
 Entrepreneurial Creativity and Innovation
 Entrepreneurial Roles and Responsibilities
 Benefits of entrepreneurship to the development of an
economy.
 Entrepreneurial Characteristics, Risks and Profitability
COURSE LEARNING GOALS
(CONT…)
Learning Goal 2:
• At the end of the course, student should be able to
actively involve themselves in innovative and
creative thinking. Thus the student should be able
to plan, organize and start or scale their own
business.
Learning Goal 3:
• At the end of the course student should be able to
identify a need in society, provide solution for that
need and in turn establish a source of income for
themselves, families and those they would employ.
Learning Outcome OF THE COURSE
Applying theories, concepts and principles
learned in the course using empirical analysis
adopting practical oriented case studies.
Prepared for comparable work in
employment, whether in an academic
environment (e.g., teaching or further
research), in employment that requires well-
trained Master's graduates to undertake
research, or in consultancy.
Required Readings and Resources
• Kampala international university. B. Commerce. Module 20: entrepreneurship. Institute for
open & distance learning
• Shanks, Graeme, Ilona Jaglelska, and Malini Jayaganesh. 2009. A Framework for
Understanding Customer Relationship Management Systems Benefits. Communications of
AIS 25 (26): 263–287
• Fred Wilson, published on July 16, 2019. www.ntaskmanager.com- benefits of teamwork
• Paul Goodman, toughnickel.com; disadvantage of teamwork in the workplace. Updated on
March 19, 2019.
• www.sandler.com/benefits of teamwork. Posted on August 9, 2017.
• Business Journals. The journal of Entrepreneurship Sage Publication.
• Journal of Small Businesses and Entrepreneurship by Taylor and Francis iEduNote (2017)
• National Universities Commission (n d) Entrepreneurship Studies for Distance Learners in
the Nigerian University System.
OPTIONAL/RECOMMENDED READINGS AND OTHER

LEARNING RESOURCES:
• Business Journals 2017/2018/2019/2020/2021/2022
Assignments and Grading
• Test, group work, quizzes, writing assignments,
presentations, exams, presentation papers, etc.
• The course grade will be based on the following elements:
Assignment Point Value
Attendance and Class participation 4%
Individual Presentation 4%
Group work 4%
Test 4%
Assignments 4%
Exams 80%
TOTAL POSSIBLE POINTS 100%
• Letter Grade: How a grade is determined (by point value or

percentage – according to UNIMAK criteria)
Grading SYSTEM
SCORE LETTER GRADE POINTS
90 – 100 A+ 5 (Exceptional)
86 – 89 A 5 (Exceptional)
75 – 85 A- 5 (4.7@)
70 – 74 B+ 4 (4.3)
65 – 69 B 4 (Good)
60 – 64 B- 4 (3.7@)
50 – 59 C+ 3 (3.3)
46 – 49 C 3 (Promotion Factor)
40 – 45 C- 3 (2.7@)
37 – 39 D 2 (Conditional Pass)
35 – 36 E 1 (Fail)
0 – 34 F 0 (Fail)
Major Assignments
• description of the assignments
1. Advise Mr. Conteh on the possible reasons for failure in
business.
2. List ten well known businesses in S/L that are: (a) sole
proprietorship, (b) Partnership business organization, (c)
Cooperative, (d) Corporation.
3. In your understanding comment on whether the course
entrepreneurship is relevant or not relevant to you as
ACF/BAF/BAM/HRM student.
4. Identification of appropriate sources of funding is key
for the success of business. True or false? Discuss.
Major Assignments (cont…)
5. (a) How is entrepreneur differ from intrapreneur and
entrepreneurship? (b) What are those things within you to
propel you to startup a business of your own. What are
the factors that encourage creativity and how can one be
innovative?
6. Assuming you are asked to rate yourself as a successful
entrepreneur based on entrepreneurial characteristics
identified in this unit, itemize the entrepreneurial
characteristic that you feel you possess. In your own view,
do you qualify to be called a successful entrepreneur?
Justify.
7. Why is business environment important to an
entrepreneur? Identify any five (5) factors each that can
be classified as internal, intermediate and external
environment respectively.
8. In order to perform their functions effectively and operate
a successful business, entrepreneurs have to perform
certain roles. Itemize three (3) managerial and non-
managerial roles for an entrepreneur in a small business
and write short notes on them. (b) Outline the roles of
entrepreneurship in nation building. (c) Enlist the various
Entrepreneurs' responsibilities to individuals,
environment, government and community.
9. (a) State how you will ensure your entrepreneurial vision
is brought into reality. (b) Why should an entrepreneurial
organization have clearly stated vision, mission and
objectives? (c) List five reasons why you think government
should regulate businesses in Sierra Leone. (d) Evaluate
the roles of Corporate Affairs Commission in relation to
business operations in Sierra Leone. (e) Identify five ways
you think government can support entrepreneurs in your
environment.
10. (a) What is the importance of market analysis in a
feasibility study? (b) Is writing a business plan a time
consuming and financial wastage or not? Discuss.
11. (a) How will you determine your financial needs in the
process of creating a business venture or expanding an
existing one? (b) Identify any five (5) realistic ways of
raising capital for your new business. (c) Mention five (5)
reasons why an entrepreneur requires a credit facility as
suggested above.
12. (a) Lists the concepts of business ethics and Examine the
importance of ethics in entrepreneurship. (g) Identify
some ethical issues that may arise in international
business and Explain the necessity of ethics in
international business? (h) State the requirements of
corporate ethics policies?
13. (a) Differentiate between business entrepreneurs and
social entrepreneurs. (b) List the major functions of a
social entrepreneur. (c) List at least ten (10) Sierra
Leonean Social Entrepreneurs and describe the area of
business of any of them.
14. Briefly describe the entrepreneurship evolutionary
processes in Sierra Leone. (e) What are the peculiar
challenges and successes confronting the Sierra Leonean
Entrepreneur.
EXTRA CREDIT POLICY
PARTICIPATION POLICY
(what constitutes class participation and how that
be assessed)
• Every student is expected to take part in class

discussion, giving relevant inputs to the course,
adding relevant suggestions and asking questions
pertaining to the topic of discussion during a
particular class.
EXTRA CREDIT POLICY (cont…)
ATTENDANCE POLICY AND IN-CLASS EXPECTATIONS
(turning in assignments late, respect for other students, use of
technology during class time, etc.).
• It is a must that Students attend all classes or lectures as it is part of
passing the module. Class attendance is key for every student.
• Students who are absent for classes should send in an official letter
stating the reason (s) for being absent and in the case of three
consecutive missed classes, the student must repeat the module.
• If a situation arises in which an assignment cannot be completed,
the participant is expected to make arrangement with the
instructor for the timely submission of such work.
• Failure to complete all work I this timeframe will result in an
incomplete or a grade of F for the work, depending on the reason
for the delay.
EXTRA CREDIT POLICY (cont…)
GENERAL POLICIES
(such as student conduct, plagiarism, academic
dishonesty, exam policies, etc.)
• There is a student’s handbook that speaks volumes
on student’s conduct, plagiarism, academic
dishonesty, exams policies etc.

THANK YOU
UNIT 1
1.1 ORIGIN AND CONCEPT OF ENTREPRENEURSHIP
1.1.0 Introduction
1.1.1 Learning Objectives
1.1.2 Origin and Concepts of Entrepreneurship
1.1.3 Various definitions of Entrepreneurship
1.1.4 Characteristics of Entrepreneurship
1.1.5 Types of Entrepreneurship
1.1.6 Importance of entrepreneurship
1.1.7 Various definitions of Entrepreneur
1.1.8 Characteristics of successful entrepreneurs
1.1.9 Types of Entrepreneur
1.1.10 Importance of entrepreneurs
EXERCISE AND REVIEW QUESTIONS
INTRODUCTION
 In this study session, you are going to learn about:
 the origin of entrepreneurship;
 the various definitions of entrepreneurship and
entrepreneur;
 the types of entrepreneurship and entrepreneur;
 their characteristics and importance will also be
covered.
LEARNING OBJECTIVES
At the completion of this lesson, you should be able to
(with 100% accuracy):
 Discuss the Origin and Concepts of Entrepreneur &

Entrepreneurship
 Discuss the types of Entrepreneur &
Entrepreneurship
 Discuss the relevance of the subject matter)
ORIGIN OF ENTREPRENEURSHIP
 Various scholars have written extensively on the origin of
entrepreneurship. What is interesting is that most of the scholars
who wrote about the origin of entrepreneurship are either
economists or historians.
 Thus, Entrepreneurship theoretical foundations extend from
economics to other disciplines such as history, politics, education,
ecology, culture, experience, networking and so on.
 Basically, the concept entrepreneur is derived from the French
concept “entreprendre” which literarily is equivalent to the English
concept “to undertake”.
 From the business point of view, to undertake simply means to start
a business (QuickMBA, 2021).
 From the historical point of view, Schumpeter (1951) opined that the
French economist Richard Cantillon, was the first to introduce the
concept "entrepreneur" in his work in 1755. He viewed the
entrepreneur as a risk taker (Burnett, 2020).
CONCEPT OF ENTREPRENEURSHIP (cont…)
 The concept “entrepreneurship” is almost as old as the formal
discipline of economics itself especially given the fact that it was
economists such as Adam Smith, David Ricardo, and John Stuart Mill
who have written extensively on it, albeit referring to it as "business
management”.
 The concept ‘entrepreneurship’, laid emphasis on a wide spectrum of
activities such as: Self-employment of any sort; Creation of organizations;
Innovation applied to a business context; The combination of resources;
Identification and exploitation of opportunities within the economic system or
market; and The bringing together of factors of production under uncertainty.
 After critically studying the many definitions, we can therefore
conclude that whatever activity that involves any or all of the above
activities can be regarded as entrepreneurship.
 Again, we can summarize by concluding that,
“Entrepreneurship refers to all the processes and activities involved in
establishing, nurturing, and sustaining a business enterprise.”
CONCEPT OF ENTREPRENEURSHIP (cont…)
 Besides,
“Entrepreneurs are business persons who identify the existence of
business opportunities and based on this they create businesses
thereby creating new products, new production methods, new markets
and new forms of organization to satisfy human needs and wants
mostly at a profit”.
 It should also be noted that though most entrepreneurial businesses
start small, entrepreneurs are not only small business owners; they
can also be big business owners.
 These debates, notwithstanding, entrepreneurship theory has kept

on evolving over the years and throughout its evolution different
scholars have put forward different characteristics that they believe
are common among most entrepreneurs.
CHARACTERISTICS OF
ENTREPRENEURSHIP
 Rockstar (2008) recognized the characteristics of
entrepreneurship as:
o Creative Activity – entails innovations while bearing in
mind the market;
o Dynamic Process – bear in mind the dynamic business
environment.
o Purposeful Activity – (profit making, humanitarian, or to
bring a difference to the market).
o Involves Risk – a very risky venture; These decisions are
critical, enormous and cannot be easily reverted.
o Visionary Activity - a clear vision of /her new venture.
o Involves Leadership Quality – Impart and guide their
employees towards the right path of success
TYPES OF ENTREPRENEURSHIP
 entrepreneurship is classified into the following main
types:
– Small Business Entrepreneurship
– Scalable Startup Entrepreneurship
– Large Company Entrepreneurship
– Social Entrepreneurship
– Jack of all trades
 Other sub-divisions of entrepreneurship include:
• Commercial; International; E-Entrepreneurship or
Cyberpreneurship; Intrapreneurship; Technopreneurship;
Public; Individual; Mass; Agripreneurship; Buyer;
Administrative; Opportunistic; Acquisitive; Incubative;
Cultural; Ecopreneurship and so on
IMPORTANCE OF ENTREPRENEURSHIP
 Creation of Employment - an entry-level job, required for
gaining experience and training for unskilled workers.
 Innovation - It is the hub of innovation that provides new
product ventures, market, technology and quality of goods,
etc., and increase the standard of living of people.
 Impact on Society and Community Development - assists
towards a more stable and high quality of community life.
 Increase Standard of Living - of a person by increasing the
income.
 Supports research and development - New products and
services need to be researched and tested before launching
in the market. This promotes research, general
construction, and development in the economy.
CHARACTERISTICS OF ENTREPRENEURS
 Not all entrepreneurs are successful; there are definite
characteristics that make entrepreneurship successful.
 Risk Bearing Ability: …capacity to bear risk.
 Technical Knowledge: about production techniques and marketing.
 Ability to Gather Financial and Motivational Resources for the
creation of the new business.
 Self Confidence: believe in him/herself.
 Multi-Skilled - a jack of all trade and master of all.
 Confidence in the Face of Difficulties and Discouraging
Circumstances: ‘never say never’ kind of person; everything is
possible for the entrepreneur.
 Innovative skills: one that can make a difference;
 Results-Orientated: one who knows how to get results under any
circumstances either with others or through others.
 Risk-Taker: take calculated risks and often shift the risks to others.
TYPES OF ENTREPRENEUR
 Entrepreneurs turn bold ideas into reality.
 There are different types of entrepreneurs and each type
tends to choose their own path based on their personality,
abilities and surroundings.
 Again, based on the interaction with the business
environment, various types of entrepreneur can emerge.
depending on background, country and even sector.
 To this effect,
 Rockstar (2008) identified the four types of entrepreneur as
(1) Innovative, (2) Imitating, (3) Fabian and (4) Drone.
 Lonely Entrepreneur, (2018) identified five types of
entrepreneur as: (1) Innovators (2) Imitators (3) Hustlers (4)
Researchers and (5) Buyers
IMPORTANCE OF ENTREPRENEURS
 Entrepreneurs occupy three behaviourial roles,
namely
 as agent of economic change
 as agent of social change and
 as agent of technological change.
The managerial roles of entrepreneur
notwithstanding other things or circumstances are:
• Interpersonal – includes figurehead, leadership and liaison roles
• Informational – comprises monitoring, information dissemination
and spokesperson roles.
• Decisional – consisting of entrepreneurial, conflict resolution,
resources allocation and negotiation roles.
Summary
 This study session discuses the evolution and definitions of
entrepreneurship and entrepreneur. It examines how the
concept of entrepreneurship originated and the various
ways in which various scholars have defined the concept
over the years.
 The study session also identifies characteristics of
entrepreneurship and that of entrepreneurs. It also
highlights the traits possessed by entrepreneurs.
 It as well examines the importance of entrepreneurship and
entrepreneur in ensuring that one is clear on the business
created in the dynamic business environment.
 Finally the study session identifies the different types of
entrepreneurship and entrepreneurs that can emerge.
Assignment 1 = (individual task)
1. Advise Mr. M.A.I. Conteh on the possible reasons for failure in

business.
2. In your understanding comment on whether the course
Entrepreneurship is relevant or not relevant to you as
ACF/BAF/BAM/HRM student.
3. How is Entrepreneur differ from Intrapreneur and
Entrepreneurship?
4. Assuming you are asked to rate yourself as a successful
entrepreneur based on entrepreneurial characteristics (other
than those identified and explained in this unit), itemize the
entrepreneurial characteristic that you feel you possess.
5. In your own view, do you qualify to be called a successful
entrepreneur? Justify.

THANK YOU
UNIT 1
1.2 ENTREPRENEURIAL MOTIVATION & VARIABLES
1.2.0 Introduction
1.2.1 Entrepreneurial motivation
1.2.2 Motivational influences on entrepreneurship or
bright side of entrepreneurs
1.2.3 Non-Motivational Influences on Entrepreneurs or
the Dark Side of entrepreneur
1.2.4 Entrepreneurship Variables
1.2.5 Summary
INTRODUCTION
 In the previous session, you learned about the origin of
entrepreneurship, the various definitions of
entrepreneurship and entrepreneur. The types,
characteristics and importance of entrepreneurship and
entrepreneur.
 In this study session, you are going to learn about what
motivate people to become entrepreneurs, and
entrepreneurial variables.
LEARNING OBJECTIVES
At the completion of this lesson, you should be able to (with
100% accuracy):
 Define and use correctly all the key words printed in bold
 Discuss the motivational and non-motivational influences
on entrepreneurship
 Identify and describe entrepreneurship variables
ENTREPRENEURSHIP MOTIVATIONS
Motivation is the driving force within individuals
that propel them to action.
Entrepreneurial motivations are those factors that
propel individuals to become entrepreneurs.
Scholars have conducted various researches on
entrepreneurial motivations and have come up with
several factors that motivate people to become
entrepreneurs.
Some scholars have adopted the trait approach and
come up with certain traits and characteristics that
they believe entrepreneurs possess.
MOTIVATIONAL INFLUENCES ON ENTREPRENEURSHIP
(BRIGHT SIDE OF ENTREPRENEURS)
 Bright side refers to the positively energizing influence of each of
the issues listed below. Shane et al. (2010) identified the
motivational influences on entrepreneurship as human and
external factors
 Need for achievement – (rich/wealthy);
 Risk taking propensity – (willing ness to take
moderate risk);
 Tolerance for ambiguity;
Human  Locus of control – (P/action = outcome);
 Self-efficacy – (task-specific/self-confidence);
Factors  Desire for independence – (financial);
 Drive – (willingness to put forth effort);
 Egoistic passion – (passionate, selfish love for
the work;
MOTIVATIONALS INFLUENCES ON ENTREPRENEURSHIP
(BRIGHT SIDE OF ENTREPRENEURS) (CONT…)
Motivational factors that influence entrepreneurial
decisions/process are divided into: human and external factors
 The status of the economy;

External 

The availability of venture capital;
The actions of competitors;
 Government regulations.
Factors
NON-MOTIVATIONAL INFLUENCES ON
ENTREPRENEURSHIP
(DARK SIDE OF ENTREPRENEURS)
 Non-motivational influences or the dark side is used with
reference to the stress producing tendency of each of the
issues discussed below.
 Opportunity cost (Ent. have less to lose).
 Stocks of financial capital (amount of
money an individual is able to accumulate).
 Social ties to investors (highly social
DARK SIDE OF actors).
 Career experience (closely related to
ENTREPRENEURS unsatisfactory work experience).
 Life-path circumstances (Negative
Displacement; Career Transition; Positive Pull
Influences
 Background characteristics (childhood,
family environment, education, age & work
history)
ENTREPRENEURSHIP VARIABLES
 Entrepreneurship Variables refers to the factors that
affect the supply of entrepreneurship.
 Basically, two factors affect the supply of
entrepreneurship: (1) opportunity and (2) willingness to
become an entrepreneur.
1. Opportunity is the possibility to become self-employed if
one wants to. The primary factors that affect opportunity
are:
a) The individual’s intrinsic entrepreneurial ability and
intuition
b) The general macro-economic environment.
SUMMARY
 You have learnt in this study session entrepreneurial
motivations, motivational and nonmotivational influences
on entrepreneurship.
 In addition, entrepreneurship variables have been
examined.
 You as an individual may conceive of something new and
envision how it will be useful but not necessarily take the
necessary action to make it a reality. Innovation is the
process of doing new things (See the next session).
1. What are those things within you to propel you to startup a
business of your own?
2. Define motivation using your own words in the space provided
below: _________________________________________
____________________________________________
3. In the table below, put the following factors under their appropriate
headings:
(a) Drive, (b) risk taking propensity, (c) career experience, (d) desire for
independence, (e) self-efficacy, (f) career transition, (g) egoistic passion,
(h) life-path circumstances, (i) background characteristics, (j) locus of
control.
Motivational Influences Non-motivational Influences

THANK YOU
UNIT 1
1.3 ENTREPRENEURSHIP CREATIVITY AND INNOVATION
1.3.0 Introduction
1.3.1 Meaning of the term Creativity
1.3.2 Stages of Creativity
1.3.3 Benefits of Creativity
1.3.4 Innovation defined
1.3.5 Forms of Innovation
1.3.6 Phases of Innovation
1.3.7 Benefits of Innovation
1.3.8 Summary
INTRODUCTION
 In the previous session, you learned about what motivate

people to become entrepreneurs and what
entrepreneurship variables mean.
 In this study session, you are going to learn about
Entrepreneurial Creativity and Innovation. You can look
around you and see products that are different from
what they were years before. Also, you may notice that
services are being delivered in better ways than before.
These are absolutely the end results of creativity and
innovation.
LEARNING OBJECTIVES
At the completion of this lesson, you should be able to (with

100% accuracy):
 Define Creativity and innovation
 Explain creativity process, and benefits of creativity
 Discuss various forms and classifications of innovation
 Discuss the phases in successful innovation, and
innovation benefits
CONCEPT OF CREATIVITY AND INNOVATION
The terms creativity and innovation are often used

to mean the same thing, but each has a unique
connotation.
Creativity is ‘’ the ability to bring something new
into existence.”
This emphasizes the “ability,” not the “activity,” of
bringing something new into existence.
A person may therefore conceive of something
new and envision how it will be useful, but not
necessarily take the necessary action to make it a
reality.
CONCEPT OF CREATIVITY AND INNOVATION Cont…
Innovation is the process of doing new things.

It is the conversion of creative ideas into market
place reality, which people are prepared to buy.
This distinction is significant. Ideas have little value
until they are converted into new products,
services, or processes.
Innovation, therefore, is the transformation of
creative ideas into useful applications but
creativity is prerequisite to innovation (Holt,
1992;)
STAGES OF CREATIVITY
 Figure 1: The creative process
Idea Preparation: Incubation:
Germination: Conscious Subconscious
The seeding search for assimilation of
stage of a new knowledge information
idea recognition rationalization fantasizing
Illumination: Verification:
Recognition of Application or
idea as being test to prove
feasible idea has value
realization validation
Source: Holt (1992)
STAGES OF CREATIVITY (CONT…)
1. Idea germination – For most entrepreneurs, ideas begin with
interest in a subject or curiosity about finding a solution to a
particular problem.
2. Preparation – Once a seed of curiosity has taken form as a
focused idea, creative people embark on a conscious search for
answers.
3. Incubation is a stage of ‘mulling it over’. When an individual has
consciously worked to resolve a problem without success,
allowing it to incubate in the subconscious will often lead to a
resolution.
4. Illumination occurs when the idea surfaces as a realistic creation.
This stage is critical for entrepreneurs because ideas, by
themselves, have little meaning.
5. Verification is the development stage of refining knowledge into
application.
FACTORS THAT ENCOURAGE CREATIVITY
 Adams (2005), the following are critical to individual creativity:
1. Knowledge: The T-shape mind with a breadth of understanding
across multiple disciplines and one or two areas of in-depth
expertise.
2. Thinking: a strong ability to generate novel ideas by combining
previously disparate elements. This ‘synergistic’ thinking must be
combined with analytical and practical thinking.
3. Personal motivation: the appropriate levels of intrinsic motivation
and passion for one’s work combined with appropriate synergistic
motivators and self-confidence.
4. Environment: a non-threatening, non-controlling climate
conducive to idea combination and recombination such as
‘intersection’.
5. An explicit decision to be creative along with a meta-cognitive
awareness of the creative process can go a long way in enhancing
long-term creative results.
BENEFITS OF CREATIVITY
Whether you are a first-time entrepreneurship, or
an expert, there are endless benefits to continually
pursuing your inner creativity. Below are just seven
examples.
1. BECOME A BETTER PROBLEM SOLVER
2. CONNECT WITH YOUR COMMUNITY
3. SAVE MONEY
4. EXPANDED SENSE OF TIME
5. SELF AWARENESS & EXPRESSION
6. FREEDOM
7. STRESS RELIEF
FORMS OF INNOVATION
According to Hamel (1997) in Dess and Lumpkin
(2005), innovations come in different forms:
1. Technological innovativeness primarily comprises
research and engineering efforts aimed at
developing new products and processes.
2. Products-market innovativeness consists of
market research, products design, and
innovations in advertising and promotion.
3. Administrative innovativeness is concerned with
novelty in management systems, control
techniques, and organizational structure.
CLASSIFICATIONS OF INNOVATION
 Innovation can also be classified in terms of whether it is
incremental, modular, architectural or radical:
1. Incremental Innovation: comprises relatively small modifications.
2. Modular Innovation: changes the core design of one or more components.
3. Architectural Innovation: is needed for the reconfiguration of an
established system to link together components and parts in a new way.
4. Radical Innovation: brings about a new dominant design.
5. Disruptive Innovation-gets a great deal of attention, particularly in d press
6. Application Innovation – takes existing technologies into new markets.
7. Product Innovation - focus can be on performance increase, reducing cost
8. Process Innovation - makes processes for established offers more effective
9. Experiential Innovation - improve customer’s experience of products.
10. Marketing Innovation - improves customer-touching processes.
11. Business Model Innovation - reframes an established value proposition
12. Structural Innovation - capitalizes on disruption to restructure I-RPS
BPHASES IN SUCCESSFUL INNOVATION
 Desouza, Dombrowski, Awazu, Baloh, Papagari, Kim, and Jha,
(2007) identify the following five essential phases of successful
innovation:
1. Idea Generation and Mobilization phase is the starting point for
new ideas.
2. Advocacy and Screening phase is the period for weighing an idea’s
costs and benefits.
3. Experimentation phase assesses the sustainability of ideas for a
particular firm at a particular time – and in a particular
environment.
4. Commercialization phase, the firm should look to its customers to
verify that innovation actually solves their problems and then
should analyze the costs and benefits of rolling out the innovation.
5. Diffusion and Implementation phase of gaining final, company

overall acceptance of an innovation; and of setting up the
CHARACTERISTICS OF SUCCESSFUL INNOVATION
 According to Loewe and Dominiquini (2006), good
innovation processes share the following characteristics:
1. Allow divergence and exploration at the front end. This
helps ensure that the new ideas generated are not
simply a repeat of what has been done before.
2. Synthesize individual ideas into bigger platforms before
selecting individual ideas to develop further. This
enables the company to avoid "gambling the farm" on
one idea without first learning about the larger
opportunities at hand.
BENEFITS OF INNOVATION
• Innovation can deliver significant benefits. Some
of the key practical benefits of innovation are:
1. improved productivity
2. reduced costs
3. increased competitiveness
4. improved brand recognition and value
5. new partnerships and relationships
6. increased turnover and improved profitability
• How you approach innovation will depend on your business.
Typically, it can be an enhancement to your existing product or
service, an expansion to your business or a complete change of
direction.
RISKS OF NOT INNOVATING
• Doing something new, untested or unproven may
seem risky. However, the biggest risk of all for a
modern business may in fact be not innovating.
• Businesses that fail to innovate run the risk of:
1. losing market share to competitors
2. falling productivity and efficiency
3. losing key staff
4. reduced margins and profit
5. going out of business
• Read more on the risks and rewards of innovation.

SUMMARY
 You have learnt in this study session entrepreneurial creativity and
innovation.
 You as an individual may conceive of something new and envision
how it will be useful but not necessarily take the necessary action
to make it a reality. Innovation is the process of doing new things.
 The innovation initiative provides a chance for your organization to
think more holistically about innovation from a business model
perspective whether as accountants, plant managers and business
owner work alongside salespeople, engineers and chemists.
 As a dimension of corporate entrepreneurship, innovation is a firm’s
commitment to creating and introducing products, production
processes, and organizational systems.
 Hence, if your firm wants to remain competitive and also prosper, it
has no choice but to proactively improve its innovation
effectiveness.
1. What are the factors that encourage creativity
2. How can one be innovative?
3. Define Creativity and innovation
4. Explain creativity process, and benefits of creativity
5. Discuss various forms and classifications of
innovation
6. Discuss the phases in successful innovation, and
innovation benefits

THANK YOU
UNIT 1
1.4 CONCEPT OF BUSINESS AND BUSINESS
ENVIRONMENT
1.4.1 Various
definitions of the concept ‘business
and business environment;
1.4.2 Components of the business environment;
1.4.3 Internal and External environment factors;
1.4.4 Process of scanning and analyzing business
environment using SWOT analysis;
1.4.5 Factors to consider under SWOT analysis.
INTRODUCTION
In the previous session, you learned about what

motivate people to become entrepreneurs and what
creativity and innovation mean.
In this session, you are going to learn about what
business is and the components of the business
environment.
The session will also discuss the process of
environmental scanning using the SWOT Analysis.
LEARNING OBJECTIVES
At the end of this study session, you should be able to

Define correctly the concept ‘business’ and ‘business
environment’;
Identify and discuss the components of the business
environment;
 Identify the internal and external environment
factors;
Describe the process of scanning and analyzing
business environment using SWOT model;
Identify the factors to consider under SWOT analysis.
AN OVERVIEW OF THE CONCEPT OF BUSINESS
 The concept ‘business’ has been defined in different ways

by various authors.
 It has been viewed as an economic system in which goods
and services are exchanged for one another, for money, on
the basis of their perceived worth (BusinessDictionary.com,
2010).
 A business is also conceived as a legally recognized
organization. It is also referred to as: enterprise, business
enterprise, commercial enterprise, company, firm,
profession or trade operated for the purpose of earning a
profit by providing goods or services, or both to consumers,
businesses and governmental entities
 (Sullivan and Sheffrin, 2003; AllBusiness.com., 2010).
AN OVERVIEW OF THE CONCEPT OF BUSINESS (cont…)
 Whatever is the definition of business, it should be

known that:
 a business is any undertaking that deals with the
production and distribution of goods and services that
satisfy human needs and wants.
 businesses do not exist out of the ‘blues’! They are
created by a special kind of labour called the
entrepreneur. However, once the businesses have been
created the entrepreneur has to organize all the factors
of production to ensure that the business survives.
 the purpose for which a business is established varies
and by virtue of this we have different types of
businesses.
AN OVERVIEW OF THE CONCEPT OF BUSINESS (cont…)
 For instance if a business is established for the purpose
of making a profit, it is called a profit making business,
otherwise, it is called a not-for-profit or non-profit
making business.
 Also businesses could be classified as:
 Legal entities, when they are established in compliance
with the rules of the land, government or society. Legal
businesses can also be referred to as wholesome
businesses because they are beneficial to the society.
 Illegal businesses are those that do not follow established
laws. On the other hand, unwholesome businesses are
illegal businesses that are inimical to the society.
THE CONCEPT OF BUSINESS ENVIRONMENT
 The concept ‘environment’ literally means the
surroundings, internal, intermediate and external
objects, influences or circumstances under which
someone or something exists (Kazmi, 1999).
 The business environment is simply the surroundings
within which a business exists.
 The environment of the business exhibits the following
conditions and characteristics.
1. Stable Condition 5. totality of ext. forces
2. Simple Condition 6. Multifaceted
3. Dynamism 7. Relativity
4. Complexity 8. Far-reaching impact or
interrelatedness
COMPONENTS OF THE BUSINESS ENVIRONMENT
The business environment is made up of the
1. internal environment (micro-environmental
forces/factors are found in the internal environment of
the business; and
2. external environment in which the main macro-
environmental forces/factors found in the business.
Internal Environmental Factors (controllable

environment): refer to those factors over which the
entrepreneur has control, at least in the short run; It is
made up of all those physical and social factors within the
boundaries of the business, which impart strengths or
cause weaknesses of a strategic nature and are taken
directly into consideration in the decision-making
INTERNAL ENVIRONMENTAL FACTORS (cont…)
(Controllable environment of the business)
The internal environment of the business is made up of
micro-environmental factors such as:
 organizational goals and objectives;
 Organizational resources and behavior;
 Strengths and weaknesses;
 Organizational capacity;
 Synergistic relationships
 Distinctive competence;
 Specific technologies utilized by component units of the
organization,
 size, types and quality of personnel,
 administrative units, and nature of the organization’s
product/service.
EXTERNAL ENVIRONMENTAL FACTORS (cont…)
(Uncontrollable environment of the business)
The external environmental factors refer to those
factors over which the entrepreneur has no control but
have tremendous impact on the survival of the business;
Within the external environment of the business are all

the factors which provide opportunities or pose threats
to it.
The major external environmental factors are:

 Demographic factors; Political/Legal Factors;
 Technological Factors; Natural Environment;
 Socio-Cultural Factors; Economic Factors;
 Competitive Environment; Others.
INTERMEDIATE ENVIRONMENTAL FACTORS (cont…)
(Uncontrollable environment of the business)
Intermediate determinants of entrepreneurship ideally
represent issues or factors in the borderlines between
strictly internal and external factors affecting
entrepreneurship.
Generally they include the customers and the suppliers
who are the links between the organization and the purely
external environmental factors.
They also include various support systems, both private
and public e.g. legal firms and public relations agencies.
Some of such support systems include:
 Technical and Technological Related Support Systems
 Some Financial Support Systems
 Some governmental support system including education,
regulations, etc.
PROCESS OF SCANNING AND ANALYZING THE BUSINESS
ENVIRONMENT USING SWOT ANALYSIS
 SWOT entails the objective analysis of a business’s
Strengths and Weaknesses and its Opportunities and
Threats.
 The Internal Evaluation starts with: The identification of the profit
contribution of each area, followed by allocation of resource,
determination of risks involved, variety reduction, realistic
allocation of costs and the assessment of company resources.
 The External evaluation starts with the determination of market

stranding, determination of competitors’ strengths and
weaknesses, assessment of the vulnerability of the business’ main
products to substitutes, assessment of the effects of economic
changes on the business, inter firm comparisons and Stock Market
Valuation in terms of an assessment of the company’s
vulnerability to takeover. (Dixon-Ogbechi, 2003).
STRENGTHS AND WEAKNESSES ANALYSIS
 SWA involves scanning the internal environment of the business
in order to identify its strengths and weaknesses. The
entrepreneur needs to evaluate the SW of the business
periodically.
 Also, the entrepreneur can assess the internal environment of the

business by critically looking at the internal factors in terms of the
5s, namely: Skills, Strategy, Staff, Structure, Systems and Shared
Values (Business-Plan, 2010).
 To do this effectively the entrepreneur needs to ask him/herself

and answer questions pertaining to the 5s (five‘s’) in terms of
their SW.
 Questionnaires can be developed to ask questions pertaining to
major IEF such as:
 What skills do the organizational members possess?
 What are the distinctive competencies of the organization?
 Does your business have a clear vision and mission?
 Are your business objectives/goals derived from its mission?
 Does your business have plans?
 Do you follow the laid down plans of the business as scheduled?
 Does your business have clear strategies to operationalize its
policies?
 Does the business have qualified staff for the relevant positions?
 Are the staff rightly placed?
 Does the business have adequate number of personnel to man the
various positions?
 Does the business have an organizational structure or organogram?
 What type of organization structure does your business adopt?
 Are there clear lines of reporting and communication?
 Does your organization have a system?
 What kind of systems (e.g. MIS, Accounting, Quality Control, and
Inventory) does your business have in place?
STRENGTHSAND WEAKNESSES ANALYSIS (cont…)
 If the answers to these questions are positive/or the

factors are present, then you record them as strengths.
 If the answers are negative/ the factors are absent, then

you record them as weaknesses.
 After this, each factor is rated as to whether it is a major

strength, minor strength, neutral factor, minor
weakness, or major weakness.
OPPORTUNITIES AND THREATS ANALYSIS
 OTA involves scanning the EE of the business in order to
identify the OT.
 The entrepreneur can assess the EE of the business by
critically looking at the OT emanating from changes in the
major EEF.
 For instance,
 opportunities in the TE could be availability of advanced
technology, developments in Information Technology like;
 opportunities in the PLE could be favorable government
policies, tax holidays;
 opportunity in the DE could be great market demand;
 opportunities in the EcE could be growing export market
increased consumer spending and growing industry.
 Positive seasonal influences are an opportunity in the NE
 opportunities in the OE could be change in consumers
taste in favour of your product and Intermediaries’
cooperation.
 Examples of threats in some external environmental

factors can come from
 direct and indirect competitors,
 consumers, substitute products or services and
suppliers,
 customers brand switching and innovations by
competitors.
 The entrepreneur can classify the overall attractiveness of a

business once he/she has conducted a thorough opportunities and
threats analysis. To this effect, threats could be classified
according to their seriousness and probability of occurrence.
OPPORTUNITIES AND THREATS ANALYSIS cont…
 To evaluate the opportunities, the business needs to operate a
reliable Management Information System (MIS). The information
obtained will enable the entrepreneur know if the business
 is ideal (i.e. it is high in major opportunities and low in major
threats);
 is speculative (i.e. it is high in both major opportunities and
threats);
 is mature (i.e. it is low in major opportunities and threats) and
 is troubled (i.e. it is low in opportunities and high in threats).
 An effective opportunity and threat analysis is advantageous to

the entrepreneur;
 It will enable the entrepreneur make decisions on whether the
business should limit itself to those opportunities where it now
possesses the required strengths or should consider better
opportunities where it might have to acquire or develop certain
strengths.
SUMMARY
 This session looked at how the entrepreneur can analyze and scan
the environment for entrepreneurial opportunities. In doing this, the
reductionist approach has been adopted.
 To this effect, an overview of the concept of business, environment,
business environment, business environmental factors was
discussed.
The study session also discusses the SWOT (Strengths, Weaknesses,
Opportunities and Threats) analysis and sees how this could assist
the entrepreneur evaluate the attractiveness of a business.
 from this the SWOT framework is beneficial for entrepreneurial
decision making because it enables the entrepreneur respond to the
dynamic business environment by enabling him/her consolidate on
the strengths, overcome or turn weaknesses around, grab
opportunities and avoid threats or even convert threats to
opportunities (Business-Plan, 2010).
ASSIGNMENT 4 (INDIVIDUAL TASK)
1. Why is business environment important to an

entrepreneur?
2. Identify any five (5) factors each that can be classified as
internal, intermediate and external environment
respectively.
3. An effective opportunity and threat analysis is
advantageous to the entrepreneur. TRUE OR FALSE.
JUSTIFY
4. An effective Strengths and Weaknesses analysis is
advantageous to the entrepreneur. TRUE OR FALSE.
JUSTIFY

THANK YOU
UNIT 1
1.5 FORMS OF BUSINESS OWNERSHIP AND LEGAL IMPLICATIONS
1.5.1 Consideration for the choice of the form of Business

organization
1.5.2 Sole proprietorship (Meaning, characteristics, merits
and demerits).
1.5.3 Partnership (meaning, characteristics, types,
formation, merits, demerits and dissolution of
partnership).
1.5.4 Limited liability companies (meaning, characteristics,
types, formation, merits, demerits and disclosures).
1.5.5 Co-operative societies (meaning, characteristics,
types, merits, demerits and …)
INTRODUCTION
 In the previous study session, you have learnt about business and
business environment.
 In this session you will agree with me that different forms of
businesses operate around you. Some are very small, run by a
single person without any assistance, others engage few other
people.
 These businesses can be categorized differently, for example they
can be classified as sole proprietorship, partnership, limited liability
companies, cooperative societies.
 All these various forms of businesses are what you will learn in
this study session.
 In addition, you will also learn the legal requirement for
establishing each category and also the regulatory agency that
regulate the activities of companies in Sierra Leone.
LEARNING OBJECTIVES

Define sole proprietorship; discuss its advantages and
disadvantages.
Explain partnership, types, formation and dissolution of
partnership.
Explain limited liability companies .
Explain co-operative societies and types
FORMS OF BUSINESS OWNERSHIP
 There is no single best form of business ownership.
 Each form has its own unique set of advantages/disadvantages.
 The key to choosing the optimum form of ownership is the ability
to understand the characteristics of each business entity and how
they affect an entrepreneur’s business and personal
circumstances.
 Whether small or large, every business fits one of four categories
of legal ownership,
1. sole proprietorships,
2. partnership,
3. cooperatives,
4. corporations.
SOLE PROPRIETORSHIP FORM OF BUSINESS OWNERSHIP
 Sole means Single and Proprietorship means Ownership. It means

only one person or an individual is the owner of the business. The
individual who owns and runs the Sole Proprietorship business is
known as ‘Sole Proprietor’ or ‘Sole Trader’ .
 It is the Simplest and most popular form of ownership. Designed
for a business owned and managed by one individual. Easiest kind
of business for you to explore in your quest for an interesting
career.
 The SP is the only owner and ultimate decision-maker for the
business. No legal distinction between the SP status as an
individual and his/her status as a business owner.
 Although sole proprietorships are common in a variety of
industries, they are concentrated primarily among small
businesses unit such as repair shops, small retail outlets, and
service providers, e.g., painters, plumbers, and barbing saloon.
CHARACTERISTICS OF SOLE PROPRIETORSHIP
MERITS & DEMERITS OF SOLE PROPRIETORSHIP
 Following are the merits and demerits of proprietorship

 Advantages of sole proprietorship:
 1) Least cost of business ownership to establish 2) Minimum or no
special legal restriction 3) Ownership of all profit 4) No special
taxes since business income and proprietors’ income are taxed as
one. 5) Maximum incentive to succeed 6) Privacy 7) Flexibility of
operation 8) Easy to discontinue.
 Disadvantages of sole proprietorship:
 1) Unlimited personal liability 2) Limited access to capital for
expansion 3) Limited skills and abilities 4) Feelings of isolation
/overwhelming time commitment 5) Few fringe benefits 6) Limited
growth 7) Lack of continuity for the business that has a limited life
span.
PARTNERSHIP FORM OF BUSINESS OWNERSHIP
 Another option for organizing a business is to form a partnership.
 A partnership is a legal form of business with two or more owners.
 Partners legally share a business assets, liabilities, and profits
according to the terms of a partnership agreement.
 The law does not require a written partnership agreement, also
known as the articles of partnership, but it is wise to work with an
attorney to develop an agreement that documents the status,
rights and responsibilities of each partner.
 The partnership agreement is a document that states all of the
terms of operating the partnership for the protection of each
partner involved.
 Banks often want to review the partnership agreement before
lending the business money.
 A partnership agreement can include any legal terms the partner’s
desire.
PARTNERSHIP FORM OF BUSINESS OWNERSHIP
 Standard partnership agreement will likely include information such:
1) Name; Purpose; Location; and Duration of the partnership;
2) Names of the partners and their legal addresses
3) Contributions of each partner to the business, at the creation of the
partnership and later;
4) Agreement on how the profits or losses will be distributed;
5) Deed on salaries or drawing rights against people for each partner;
6) Procedure for expansion through the addition of new partners;
7) Distribution of the assets to the partners; and Voting rights;
8) Sale of the partnership interest; Absence/disability of one of the
partners;
9) Financial & Decision making authority; and Handling tax matters;
10)Alteration or modifications of the partnership agreement.
11)Termination of partnership; & Distribution of assets upon dissolution
of the partnership
PARTNERSHIP FORM OF BUSINESS OWNERSHIP cont…
 A Partnership can be regarded as an improvement on sole

proprietorship form of business organization, the minimum number
of people that can form a partnership is two, while the maximum is
twenty, with the e
 Exception of partnerships comprising professionals; for example,
lawyers, accountants, doctors, to mention just a few.
 Notably, most partnerships are usually formed by professionals and
those that engage in service oriented business concerns.
 In a partnership, the decision making is done with the mutual
consent of all the partners.
 They share among themselves the decision making and control of
the regular business operation.
CHARACTERISTICS OF PARTNERSHIP FORM OF BUSINESS
OWNERSHIP
TYPES OF PARTNERSHIP
 Partnership types on the basis of duration of partnership are two:
 Partnership at will: existing as per the will of the partners.
 Particular partnership: created, to carry on a certain project, for a
specified time.
 Besides, four types of partnership, on the basis of liability of partners

exists:
(1) General partnership (GP): all owners share in operating the business
and in assuming liability for the business’ debts.
(2) Limited partnership (LP): is a special kind of partnership governed by
partnership Act of 1907.
(3) Master Limited Partnership (MLP): looks much like a corporation in
that it acts like a corporation and is traded on the stock exchanges.
(4) Limited Liability Partnership (LLP): partners risk losing their personal
assets to only their own acts and omissions of people under their
supervision.
TYPES OF PARTNER
1) General partners: have unlimited liability and are active in managing
the firm.
2) Limited partners: invests money in the business but do not have any
responsibility or liability for losses beyond the investment.
3) Silent partners: known by the public as owners of the business, but
they may take no active role in marketing the business.
4) Secret partners: take active role in the management of the company
but they are unknown to the outsiders as partners.
5) Sleeping partners or dormant partners: are neither known as
partners by the public nor do they participate in managing the
company. They only share from the profit/loss of the business to the
tune of capital contributed.
6) Nominal or Quasi partners: are publicly known as partners although
they have no investment in the business and therefore have no
rights of management. They merely lend their names to the
enterprise and may be liable for certain debt of the partnership.
ADVANTAGES & DISADVANTAGES OF PARTNERSHIP:
 Advantages of Partnership
 1 Easy to establish;
 2 More financial resources;
 3 Division of profits
4 Shared management and pooled /complementary skills and knowledge;
 5 Minimum governmental regulation/limited legal restrictions;
 6Flexibility;
 7 Freedom from double taxation;
 8 Secrecy.
 Disadvantages of Partnership:
 1 Unlimited liability;
 2 Division of profits;
 3 Disagreement among partners especially with regard to authority and
control;
 4 Difficult to terminate because partners are bound by the law of agency;
 5 Restrictions on transfer of ownership;
 6 Lack of continuity.
LIMITED LIABILITY COMPANIES
 A company is a body corporate or an incorporated business
organization registered under the companies act.
 It can be a limited or an unlimited company, private or a
public company, company limited by guarantee or
a company having a share capital, or a community
interest company (Pahwa, 2020).
 The incorporation of companies differs from one country to the
other.
 Each country has a body of laws that guide the registration and
operations of companies.
 In Sierra Leone, the Companies Act of 2009 as amended 2014 is
the major law that guides formation and registration of companies.
CHARACTERISTICS OF COMPANIES
The main characteristics of a company are as follows:
1. Artificial Person: A company is an artificial person created by law.
2. Legal Entity: A company has a separate legal entity.
3. Perpetual Succession:
4. Limited Liability of Members
5. Management and Control
6. Board
7. Separation of ownership and management
8. Incorporated Association of Persons
9. Articles of Regulations 14. Formation
10. Prescribed Mode of Winding Up. 15. Registration
11. Common Seal 16. Taxation
12.Transferability of Shares 17. Risk-Bearing
13. Buy-back of shares 18. Capital
FORMATION OF COMPANIES & CAPACITY OF INDIVIDUALS TO FORM COMPANIES
 Part III of the Companies Act 2009, Act No.5 – Section 15 “Formation
of Cos”.
1. Subject to subsection (2), any two or more persons may form and
incorporate a company by complying with the requirements of this
Act in respect of incorporation.
2. Notwithstanding subsection (1), a private company may be formed
by one person.
 Section 16: 1 & 3 condition under which members should/shouldn’t
operate as a company
 Section17: 1, 2 & 3 condition/status to form or join in the formation
of a company
 Section 18: 1 (a) (b) & (c) and 2 types of companies
 Section 19: Requirements or conditions to operate a Private
Company
 Section 20: Requirements or conditions to operate a Private
Company
LEGAL REQUIREMENT FOR REGISTRATION OF COMPANIES
 The Companies Acts specified the documents of incorporation, in
section 32 of the acts to include:
1. Memorandum of Association;
2. Articles of Association;
3. Notice of the address of the registered office and head office;
4. Statement of the lists and particulars of the first directors of the
company;
5. Statutory declaration of compliance with the provisions of the acts
6. Any other document that may be required by the Corporate Affairs
Commission (CAC), e.g. tax certificate of the directors, etc.
7. If the promoters have met the requirements of the CAC, a
certificate of incorporation or certificate of registration would be
issued and immediately the company becomes an artificial person
or legal entity.
MERITS AND DEMERITS OF COMPANIES
 Advantages of Limited Liability Companies:
 (a) It has a legal entity; (b) Limited liability of shareholders (c) Ability
to attract capital (d) Ability to continue indefinitely (e) Transferable
ownership (f) Separation of ownership from management (g) The
death of a shareholder does not mean the end of the company; (h)
Accessibility to large capital which enhance growth.
 Disadvantages of limited liability companies:
 (a) When company becomes very large, there is no personal
relationship between the customers and the owners; (b) Official red
tapism may delay decision making; (c) Chain of command becomes
long which lead to communication breakdown. (d) Cost and time
involved in the incorporation process (e) Double taxation (f) Charter
restrictions (g)Extensive legal requirement and restrictions (h)
Potential for diminished management incentives (i) Potential loss of
control by the owners (j) Difficulty of termination (k) Possible conflict
with share stockholders and board of directors.
CO-OPORATIVE FORM OF BUSINESS OWNERSHIP
 Some individuals dislike the notions of having owners, managers,
workers and buyers as separate parties with separate goals for
business organization.
 They envision a situation whereby people will co-operate with one

another as an association and share the wealth more evenly. This
is what necessitates the form of business ownership referred to as
co-operatives.
 A form of business ownership which involves a collective

ownership of a production, storage, transportation or marketing
organization is what is referred to as a co-operative.
In this regard, cooperatives are enterprises that serve the needs of
their members, who, in turn, contribute to the cooperatives' capital.
CHARACTERISTICS OF CO-OPORATIVES
 According to the Commission, cooperatives have several
defining characteristics:
1) they are open and voluntary associations;
2) they have a democratic structure, with each member having one
vote; and
3) they have an equitable and fair distribution of economic results
based on the volume of operations made through them
4) the values that cooperatives should espouse, and the seven
principles that they should abide by, namely: (i) voluntary and
open membership; (ii) democratic member control; (iii) economic
participation of members; (iv) autonomy and independence; (v)
education, training and information; (vi) cooperation among
cooperatives; and (vii) concern for community.
Although these principles are not binding, some experts insist that they have a legal nature, as they were
adopted by the International Labour Organization (ILO) in its Recommendation 193/2002. According to
those experts, the ILO recommendation should be considered a source of public international law.
TYPES OF CO-OPORATIVE
 Consumer co-operative societies
 Producer co-operative societies
 Workers co-operative societies
 Finance co-operative societies
 Co-operative Credit Societies.
 Marketing Cooperative Society.
 Housing Cooperative Society.
 Co-operative Farming Societies.
 TEACHERS Cooperative Society.
 Co-operatives allow small businesses to obtain quantity discounts

on purchases, reducing costs and enabling the co-operative to
pass on the savings to its members.
WHY DO CO-OPERATIVE SOCIETIES MATTER?
 Every Sierra Leonean national should acknowledge the worth and significance of
co-operative societies since they are an important contributor to economic
equality and welfare.
 Even though they are not the predominant public or private financial
organizations, a flourishing network of co-operative societies improves the
standard of living of the weaker and middle-income sectors of the society as
agents of change and reformation.
 They provide an economic model with a higher level of entrepreneurial or social
sustainability and often work as pressure groups to voice the views of its members
in a larger market.
 Being a part of a co-op improves your creditworthiness as a producer as well as a
consumer.
 They are easy to join, ensure equitable distribution of profits, prioritize welfare
over individual profits, are stable in their functioning and output, and receive a
substantial amount of government support.
 The spirit of co-operation and unity in chasing common interests is the driving
force behind co-ops.
 In a growing democracy, they are the symbol of meritorious collectivism.
CONSIDERATION FOR THE CHOICE OF THE FORM OF BUSINESS
ORGANIZATION
 You would appreciate the fact that there are various forms of
business organizations that exist in the environment.
 Business activities are undertaken to improve the financial and the
material welfare of the participants.
 A major group that plays an active role in business within a
capitalist economy is the entrepreneur, that is, a person who
perceives investment opportunities and takes advantages to
exploit them by organizing for the business.
 Selecting a form of business ownership is a landmark step in the
creation of a venture.
CONSIDERATION FOR THE CHOICE OF THE FORM OF BUSINESS (cont…)
 The following, according to scholars, are relevant issues the

entrepreneur should consider in the evaluation process:
1) BUSINESS GOALS -
2) SOURCES OF REQUIRED RESOURCES -
3) TECHNICAL/EXPERT ADVICE -
4) START–UP AND FUTURE CAPITAL REQUIREMENTS -
5) COST OF FORMATION -
6) TAX CONSIDERATION -
7) LIABILITY EXPOSURE -
8) MANAGEMENT ABILITY -
9) MANAGEMENT SUCCESSION PLANS -
SUMMARY
 It goes without saying that it is not easy to choose the best form of
business organization. Its evidence is outlined in this study session that
an entrepreneur may participate in the business world in a variety of
ways.
 He/She can start a sole proprietorship, partnership, limited liability
company (private or public), or cooperative. There are advantages and
disadvantages to each, but whichever one is selected there are risks.
Before you decide which form is good for you, you need to
a. Assess the nature, goals and anticipated future of the business.
b. Determine the resources, capabilities, and risk level of the owner.
c. Review your current and expected tax situation.
d. Understand the laws of your state and other jurisdictional regulations
relating to forms of business ownership.
e. Involve professional advisers, such as an attorney and an accountant
to advise and assist with the decision process and take the
appropriate action
1. List ten well known businesses in S/L that are: (a) sole
proprietorship, (b) Partnership business organization, (c)
Cooperative, (d) Corporation.
2. How is private company different from public company?
3. Explain limited liability companies?
4. How is Sole Proprietorship different from partnership?
5. How is a general partner different from a sleeping
partner?

THANK YOU
UNIT 2
ENTREPRENEURSHIP ROLES IN SOCIETY
2.1 Entrepreneurs' managerial and non-managerial roles

2.2 Entrepreneurs' responsibilities to individuals
2.3 Entrepreneurs' environmental responsibilities
2.4 Entrepreneurs' community responsibilities
2.5 Influence relationships between the global economy
and the local economy has towards the choice of consumer
buying patterns
INTRODUCTION
In the previous session you have learned about different
forms of businesses operate around you, the legal
requirement for establishing each category and also the
regulatory agency that regulate the activities of
companies in Sierra Leone.
In this session, you are going to learn about what

Entrepreneurs' managerial and non-managerial roles are;
Entrepreneurs' responsibilities to individuals,
environment, community, and the influence relationships
between the global economy and the local economy has
towards the choice of consumer buying patterns are.
LEARNING OBJECTIVES

Examine the roles played by the entrepreneur in
ensuring business survival
Explain entrepreneurs' responsibilities to individuals
Describe entrepreneurs' environmental responsibilities
Identify entrepreneurs' community responsibilities
Describe the influence relationships between the global
economy and the local economy has towards the choice
of consumer buying patterns
MANAGERIAL ROLES OF ENTREPRENEURS
 To perform effectively and operate a successful business, entrepreneurs have

to exercise certain roles. They are as follows:
1. Figure Head Role: Representing the entity in Formal & Informal functions.
2. Leader Role: by hiring/firing/training & motivating them.
3. Liaison Role: link between the business and the parties outside the business.
4. Monitor Role: monitors both the IE and the EE of the business constantly.
5. Information Disseminator Role: organizational representative and transmit
information both within and outside the business.
6. Spokesman Role: the person for the business both inside and outside.
7. Entrepreneurial Role: basic role; launches new ideas for the business and
bears the risk.
8. Disturbance Handler: arbitrator in situations of conflict so as to maintain
organizational harmony.
9. Resource Allocator: decides on how the scarce resources of the business are
allocated.
10.Negotiator Role: negotiate on behalf of the business both with the other
categories of labour and other outside sources.
NON-MANAGERIAL ROLES OF ENTREPRENEURS
 The specific entrepreneurial roles noted earlier on have a number of
activities in each role. They are specified below:
1. Social Roles of Entrepreneur: (a) Transformation of traditional
indigenous industry into a modern enterprise. (b) Stimulation of
indigenous entrepreneurship. (c) Job or employment creation in
the community. (d) Provision of social welfare service of
redistributing wealth and income.
2. Economic Roles of Entrepreneur: (a) Bearing the ultimate risk of
uncertainty. (b) Mobilizing savings necessary for the enterprise. (c)
Providing channel for the disposal of economic activities. (d)
Utilizing local raw materials and human resources.
3. Technological Roles of Entrepreneur: (a) Stimulation of indigenous
technology in the production process. (b) Adapting traditional
technology to modern system. (c) Adapting imported technology to
local environment. (d) Developing technological competence in self
and the workforce through innovation (Ogundele, 2007)
ENTREPRENEURS’ RESPONSIBILITIES TO INDIVIDUALS
Responsible entrepreneurs are a special breed, seeking to

transform industries and even society itself.
This requires them to do and think far beyond what is
usually required of business leaders.
Entrepreneurs should provide a clean, safe working
environment, build employees' self-worth through
empowerment programs, provide good, safe products and
services, operate fairly and honestly with suppliers, they
challenge and refine cultural assumptions, laws, regulations,
and event the processes of governance.
On a daily basis, they make calls to find investors or clients,
create online marketing campaigns through social media to
generate buzz for your product, or negotiating with
manufacturers to determine production costs.
ENTREPRENEURS’ ENVIRONMENTAL RESPONSIBILITIES
 Take these strategies as examples of how your business can

become more sustainable and environmentally friendly:
 Use recycled products. Recycled products help reduce the
demand for new resources;
 Make use of “green” appliances to reduce your business’s total
energy consumption, lowering your total carbon footprint while
simultaneously making your utility bills more manageable.
 Monitor your use of resources. Keep your employees
cognizant of how they are using resources in your business, and
try to control this as tightly as possible.
 Use alternative energy sources. Though it may be a heavy
investment for new entrepreneurs of startups.
 Institute a carpool (or reduce commuting). You could institute a
carpool for your regular employees, or even encourage work-from-
home days to reduce the need for travel (and your onsite
consumption of resources at the same time).
ENTREPRENEURS' COMMUNITY RESPONSIBILITIES
 The business or entrepreneur is a part of society.

 Business is performed in the society, for the society, with resources of
the society.
 The society also provides the opportunity for development and
expansion of the business.
 Hence, the business has specific responsibilities for the local
community and place, where the business is performed.
 Every enterprise, either in private or the public sector should make
efforts to
 Encourage Healthy Competition.
 Save Local Environment from Pollution.
 Help in Activities of Public Utility.
 Provide Employment for unemployed
 Help the Needy Person and Improve Standards of Living.
 Promote Public Relations.
INFLUENCE RELATIONSHIPS BETWEEN THE GLOBAL ECONOMY AND THE LOCAL
ECONOMY HAS TOWARDS THE CHOICE OF CONSUMER BUYING PATTERNS
The impact of business changes on international society is gradually
becoming visible.
Thus, the responsibilities of an entrepreneur towards world society
are as follows:
1. To Follow the Rules of International Trade.
2. To Avoid Unfair Competition in International Market.
3. Honest Business Dealings.
4. To Help Economic Development of Underdevelopment Country.
5. To Contribute towards International Peace
In such circumstances, the responsibility of the entrepreneur is that

they increase their dealings with the businessmen of various countries,
so that world peace may flourish.
Now, You all know the social responsibility of entrepreneurs towards
society & the local community.
SUMMARY
• This session have examined the roles played by the

entrepreneur in ensuring that the business created
survives in the dynamic business environment.
• It further highlighted the Entrepreneurs' responsibilities
to individuals, environment, community, and the
influence relationships between the global economy and
the local economy has towards the choice of consumer
buying patterns.
1. Explain entrepreneurs' responsibilities to individuals
2. Describe entrepreneurs' environmental responsibilities
3. Identify entrepreneurs' community responsibilities
4. Describe the influence relationships between the global economy
and the local economy has towards the choice of consumer buying
patterns

THANK YOU
UNIT 3
ROLES OF VISION, MISSION, OBJECTIVES,
GOVERNMENT/BUSINESS REGULATORY AGENCIES IN
ENTREPRENEURSHIP DEVELOPMENT
3.1 Roles of Vision In Entrepreneurship Development (Definition,
components, vision statement and importance)
3.2 Roles of Mission In Entrepreneurship Development

(Definition, mission statement and characteristics)
3.3 Roles of Objectives In Entrepreneurship Development

(meaning of organizational goals and objectives)
3.4 Roles of Government & Business Regulatory Agencies In

Sierra Leone
INTRODUCTION
• As a learner who is taking a course in entrepreneurship,

you must have expectations, dreams or mental pictures of
future possibilities. Sometimes you can either think
positively or negatively.
• When you think negatively, you have problems of changing
your future positively. On the other hand, if you think
positively you can make impossibilities to become
possibilities. You need to appreciate the fact that
Entrepreneurial enterprises in market economies are the
engine of economic development.
• SMEs contribute to sustainable growth and employment
generation in a significant manner owing to their private
ownership, entrepreneurial spirit, their flexibility and
adaptability as well as their potential to react to challenges
and changing environments.
INTRODUCTION (cont…)
• Logically, the government plays a major role in
supporting entrepreneurship and SMEs.
• There is no simpler way to create new job positions,
increasing GDP and rising standard of population than
supporting entrepreneurship and encouraging and
supporting people who dare to start their own business.
• Every surviving and successful business means new jobs
and growth of GDP.
• There is need for government to create an enabling
environment for enterprises to strive to contribute to
the increased welfare of the society since government
alone cannot meet the aspirations of the large number
of the population.
INTRODUCTION (cont…)
• This unit will therefore prepare you to understand how
you can come up with a clear vision so that you will
become whatever you desire to become in life.
• This unit will as well define vision and its components,
the importance of vision, ways of keeping your vision
alive and many more.
• I am sure you are prepared to follow me to explore the
roles of vision in making you a successful entrepreneur.
• Besides, this unit will explain the various ways in which
the government has been supporting the
entrepreneurs/SMEs. It will also show the objectives as
well as the benefits government intends to achieve for
these supportive roles.
LEARNING OBJECTIVES
 At the end of this study session, you should be able to (with 100%
accuracy):
 Define vision, components of vision and importance of vision
 Define mission statement and characteristics
 State the meaning of organizational goals and objectives
 Explain Business Regulatory/Legal role of Government in Sierra
Leone
 Define Promotional/Supportive Roles with examples
 Explain the reasons for Government
regulation/promotion/supportive roles
 List and explain the benefits of government roles
 Identify and discuss functions of five regulatory bodies in Sierra
Leone.
 List other regulatory agencies
ROLES OF VISION IN ENTREPRENEURSHIP DEVELOPMENT
 Vision is a picture of your company in the future. It is your

inspiration, the framework for all your strategic planning and it is
also articulating your dreams and hopes for your business (Ward,
2010).
 Vision again is short, succinct, and inspiring statement of what the
organization intends to become and achieve in the future, often
stated in competitive terms.
COMPONENTS OF VISION STATEMENT
• Broadly classified into two: (1) Core Ideology and (2) Envisioned
future
1. Core ideology is described as enduring character of an
organization. It is what the organization stands for, the very
purpose for which the organization is created. The core ideology
can be further sub-divided into two namely:
(a) Core value i.e. core tenet of the organization, guiding principles,
what the organization stands for.
(b) Core purpose: the reason for the organization’s existence, a clear
description of the activities of the organization.
2. Envisioned future.
 It is creative, looking to a future of greatness; it keeps the
organization as well as individual motivated even if the founders
are no longer in existence.
KEY ELEMENTS THAT MAKE ENTREPRENEURS WITH VISION
SUCCEED
o Take personal responsibility for initiating change.
o Create a vision and strategy for the organization.
o Trust and support others.
o Open yourself for criticism and be ready to adjust.
WAYS OF KEEPING VISION ALIVE
o Honour and live the vision as the organization’s constitution. The
vision is not a document prepared and hung in the office. The culture
and value of the organization must take its root from the vision.
o Encourage new members’ understanding and commitment through
early introduction. New members of the organization must be taught
and understand the aspiration of the organization.
o Make it constantly visible. Let the attitude of the leaders always
reflect the organizational vision. The decision making process must
be in line with the organization vision, so that all members of the
organization are constantly aware that it is the organizational vision
that is directing the activities within the organization.
o Create integrity through alignment and congruency – decision
making patterns, personnel policies etc must be in line with the
vision.
o Review the vision periodically, revising as appropriate to reflect
changing conditions
TIPS TO MAKING THE VISION A REALITY
 Vision must be developed by leaders, those who have the strength and influence
to establish direction and mobilize the organization members and resources.
 Empower people at all levels by articulating your vision, agree on clear goals
and objectives and give them the authority they need to be entrepreneurial in
finding ways of achieving their goals.
 A vision must be communicated to followers and must be supported by them.
Entrepreneurs must market their vision clear to the followers.
 Remove fear of unknown and fear of failure in your words and actions.
 Stay focused on the key strategic goals despite all the day-to-day distractions.
 Create a working environment that encourages creativity and innovation.
 Allow people time for exploration and discovery in addition to normal work.
 Make the vision comprehensive and detailed so that every member of the
organization can understand his or her part in bringing the vision to reality.
 Invest in employee training and coaching. Help them to develop entrepreneurial
and creative skills.
 A vision must be uplifting and inspiring.
 Plan for success but give room for failure.
EVALUATION AND EXAMPLES OF VISION STATEMENT
 The following are some of the evaluation criteria:
 Foresight  Broadness of vision  Uniqueness of vision  Consensus
of vision  Practicality of vision  Accessibility of vision.
Examples are as follows:
 ”To be a world class African university

dedicated to excellence in teaching,
 “We aspire to be a world class research and innovation, and service
university with excellence in that result in the production of a critical
education, research and public mass of graduates that possesses the
right mix of knowledge, skills, and
engagement where sustainable
competencies to be self-reliant and to
peace and social justice transform their communities, the
transcend boundaries.” nation, and the world.”
ROLES OF MISSION IN ENTREPRENEURSHIP DEVELOPMENT
o Mission is what an organization is and the reason for its existence.
o A meaningful mission must specifically state the fundamental and
unique reason for its being and how it is different from other
corporate organizations.
o Pearce II & Robinson Jr., (2004) defined mission as the
fundamental, unique purpose that sets a business apart from other
firms of its type and identifies the scope of its operations in
product and market terms.
o In defining the mission statement, the organization must take into
account five key elements namely:
1. History of the organization;
2.The current performance of the organization;
3. The environment where it operates;
4. The resources available; and
5. Distinctive competences
CHARACTERISTICS OF MISSION STATEMENT
o Effective mission statement as the following features:
1. It should be visible: should always aim high but it should not be an
impossible statement. It should be realistic and achievable.
2. It should be precise: not be too narrow to restrict organization
activities and it should not be too broad to make it meaningless
giving no direction.
3. It should be clear: to the extent that it can lead the organization
into definite action.
4. It should be motivating: to the employees and society.
5. It should be distinctive: to each organization and differentiate it
from similar organizations.
6. It should indicate major components of strategy: which are long-
range, decisions, plans, mission, goals, objectives, options,
resources allocation, resource utilization, process and advantages…
7. It should indicate how objectives are to be accomplished in terms
of concrete specific targets defined for mission derived goals
ROLES OF GOALS/OBJECTIVES IN ENTREPRENEURSHIP DEVELOPMENT
o Kazim (2004) defined goals as what an organization hopes to
accomplish in a future period of time. They represent a future state
or an outcome of the effort put in now. A broad category of financial
and non-financial issues are addressed by the goals that an
organization sets for itself.
o Objective is described in Olayiwola (2007) as specific intended results
of organization activities.
o Kazim (2004) sees objective as the ends that state specifically how
the goals shall be achieved.
o Objectives are concrete and specific in contrast to goals which are
generalized; objectives make the goals operational.
o While goals may be qualitative, objectives tend to be mainly
quantitative in specification, thus making objectives measurable and
comparable.
IMPORTANCE OF ORGANIZATIONAL OBJECTIVES
o Objectives are vital to the survival of organization especially in
the area of
1. Unifying different sections
2. Harmonization of different interests.
3. Providing directions for the organization.
4. Allowing the organization to relate effectively and efficiently
with its environment.
5. Aiding decision making.
6. Allowing the organization to pursue its vision and mission.
7. Allowing resources to be effectively and efficiently allocated
among competing needs.
8. Providing the standard for performance evaluation.
9. Establishing a basis for control.
CHARACTERISTICS OF GOOD ORGANIZATIONAL OBJECTIVES
o Since objectives are important tools to measure and evaluate
organizational performance, it is important for such tool to possess
certain characteristics such as:-
1. Clear and understandable by all the stakeholders
2. Should be concise, specific and direct
3. Must be measurable in quantitative or qualitative terms
4. Must have a time horizon which must be clearly stated within
which objective must be accomplished
5. Must be challenging and attainable
6. There must be harmony among different objectives
7. Prioritizing of objectives where resources available are
inadequate to pursue multiple objectives at the same time.
THE ROLES OF GOVERNMENT AND BUSINESS REGULATORY
BODIES IN SIERRA LEONE
o In every society, social and business activities are guided
by certain laid down principles.
o Such principles emphasis acceptable manners of conduct
among the community members.
o Similarly, the regulatory/legal environment prescribes
acceptable principles and guides in business relationship
such that each party understands the requirement of the
business relationship and that each party will conduct
business activities in accordance with the laws of the
land.
o
LEVELS OF REGULATIONS IN SIERRA LEONE
o Section 105 of the 1991 Constitution provides that the
Sierra Leone Parliament is the supreme law making body
vested with legislative power.
o There are two levels of regulations in Sierra Leone
namely:
1. The National Legislation acts or State Legislation laws,
and
2. Local Government by laws
o Hence both National and Local Governments can make

laws to regulate business activities in their domains.
o The regulatory roles of government involve “Ensuring
businesses comply with government laws”.
THE BUSINESS REGULATORY ROLES OF GOVERNMENT IN
SIERRA LEONE
o Every game has rules and regulations with a referee to
ensure compliance.
o Except every player plays according to the rules there will
be chaos.
o The governments and their various agents serve as
referees to ensure all operators comply with the rules
such as:-
a. Controlling and monitoring of quality of product through
different agencies.
b. Free and fair competition among business operators.
c. Controlling the disposal of hazardous waste.
d. Licensing of organization for production of consumable
items.
SIERRA LEONE (CONT…)
o There are many aspects of regulatory and monitoring roles of
government.
o In order to effectively carry out these roles, government has
established different agencies/bodies with the appropriate legislative
backings to ensure business operations are conducted in a friendly
business environment.
o Some of the agencies and their functions include:-
1. CORPORATE AFFAIRS COMMISSION (CAC) = Business Registration
& Company law – e.g.
a. Companies Act 2009 as amended 2014/2015.
b. Small and Medium Enterprises Development Agency Act 2015.
c. Business Registration Act 2007.
d. General Business (startup) Act 2007.
e. Bankruptcy Act 2009
2. PRODUCE MONITORING BOARD (PMB) – Agency of the Ministry of
Trade and Industry = Imports And Exports – e.g.
a. Customs clearance for imported goods was simplified in the
early 2000s.
b. The Customs Act 2011.
c. The ASYCUDA formally commissioned in 2010.
d. Investment Promotion Act 2004
3. NATIONAL REVENUE AUTHORITY – Tax Legislation = The main taxes
affecting businesses in Sierra Leone are:
e. The Income Tax Act 2000 (as amended)
f. The Goods and Services Act 2009 (as amended)
g. Multiple Finance Acts enacted since 2010.
h. The Finance Act 2016 as amended 2021.
4. THE MINISTRY OF LABOUR AND SOCIAL SECURITY: Labour Laws =
General employment law concepts such as salary, holidays,
redundancy and disputes are governed by
a. The Regulations of Wages and Industrial Relations Act 1971
b. The Employers and Employed Act 1960.
c. Payment System Act 2009.
d. The Sierra Leone’s NASSIT Act 2001.
e. The National Youth Service Act 2016.
5. MINISTRY OF LANDS, COUNTRY PLANNING & THE ENVIRONMENT –
Sierra Leone welcomes foreign investment in land and
f. the National Sustainable Agriculture Development Plan is
designed, and
g. Final National Land Policy - Version 6 (2015)
6. MINISTRY OF TRADE AND INDUSTRY – Competition Laws =
a. A “Competition Policy” and a “Consumer Protection Policy”
have been approved by the Cabinet though not yet translated
into draft legislation.
b. The 2010 UNCTAD Investment Policy Review
c. In 2002 the GoSL established the NCP
d. In November 2015, the GoSL passed the Public Procurement Act
2015,
e. The Petroleum Regulatory Agency established by the Petroleum
Act in 2013.
7. THE SIERRA LEONE INTELLECTUAL PROPERTY ORGANIZATION
currently deals with Intellectual Property (IP) issues but there are
plans to establish a specialized IP division within the High Court.
a. The WIPO, b. The Copyright Act 2011.
c. Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS).
d. The Patents and Industrial Designs Act 2012.
e. The Trade Marks Act 2014.
8. ANTI-CORRUPTION COMMISSION – Anti-bribery And Corruption

The Anti-Corruption Commission has the power to investigate and
indict companies for corruption offences.
a. The Anti-Corruption Act 2000, as amended in 2008.
b. The Local Government Act 2004.
c. The Public Financial Management Act 2016.
9. THE MINISTRY OF AGRICULTURE (NATURAL RESOURCES SECTOR) –

Environmental Laws. The EU funded Environmental Governance
and Mainstreaming project.– An overhaul of environmental laws is
underway.
THE ROLES OF GOVERNMENT AND BUSINESS REGULATORY
BODIES IN SIERRA LEONE (CONT…)
a. National minerals Agency Act 2012.
b. The EPA Act in 2008.
c. Mines and Minerals Act 2009.
d. The National Protected Area Authority (NPAA) 2008.
e. Wildlife Conservation Act (WCA) 1972 and
f. Conservation Trust Fund to support the enforcement of the WCA.
10. MINISTRY OF TRADE AND INDUSTRY - Local Content

a. The Local Content Policy (LCP) 2012, now been codified as The
Local Content Agency.
b. Sierra Leone Local Content Agency Act 2015
11. CORPORATE SOCIAL RESPONSIBILITY - There is significant

encouragement from the GoSL, civil society and NGOs for inward
investors to undertake CSR projects in Sierra Leone, and greater
participation from local enterprises is also evident.
Both private and State-owned enterprises are increasingly running
CSR programmes, and CSR is built into government department and
agency performance contracts to ensure that they provide support
for the communities in which they operate.
Common activities include the sponsorship of education
programmes, community resource management and environmental
sustainability initiatives.
PROMOTIONAL/SUPPORTIVE BUSINESS ROLES OF GOVERNMENT IN
SIERRA LEONE
o Although a number of agencies have been established in the past to
strengthen the SMEs, it is generally believed that the government
needs to do more. The following are typical ways by which
government promotes and supports entrepreneur.
1. Tax Holiday: A tax holiday is a temporary reduction or elimination of
tax (a kind of incentive used) to encourage the growth and
development of business enterprises. The taxes that are most
commonly reduced by national and local governments are sales
taxes, company income tax, etc.
2. Financial incentives: are one form of strategic assistance an
organization may be able to access from the government or
agencies. These high level schemes focus on projects that will
achieve real productivity improvements - particularly those that will
assist collaboration among firms in research, technology diffusion,
business transformation and capacity building within the defined
sectors e.g. agricultural sector, manufacturing sector etc.
PROMOTIONAL/SUPPORTIVE BUSINESS ROLES OF GOVERNMENT IN
SIERRA LEONE (cont…)
3. Infrastructural development: are basic facilities that will enhance
productivity, reduce cost if they are centrally provided by the
government. These items include constant electric supply, portable
water, good road facilities, efficient communication system etc.
4. Subsidies: a form of financial assistance granted to economic
agents such as business organizations with the aim of supporting
such businesses to generate increased productivity and promote
increased employment and society’s welfare. E.g., Credit facilities;
attraction of overseas capital and technical know-how; Export
promotion Activities.
5. Creation of incubator units providing the space and infrastructure
for business beginners and innovative companies, and helping them
to solve technological problems, and to search for know-how and
promote innovation
6. Stability of system of laws and justice and many more.
OBJECTIVES FOR BUSINESS REGULATIONS IN SIERRA LEONE (cont…)
o To ensure the development of healthy balance between private
and public ownership
o To make use of equal opportunity for cooperations
o To ensure utilization of the existing capacity and the creation of
economy of scale
o To avoid the creation of natural monopolies
o To promote a more equitable distribution of income and a wider
ownership of business enterprises within and among nationals
o To develop data base or data bank in business activity
o To raise revenue for purpose of financing other social, economic
and political objective defined by the government
o To promote general pattern of distribution and raise the living
standards of Sierra Leoneans
o To regulate by-laws and taxation with a view to equating the
private and social costs.
OBJECTIVES FOR BUSINESS REGULATIONS IN SIERRA LEONE (cont…)
o To ensuring that the economy is not dominated by foreign

entrepreneurs.
o To provide greater employment opportunities
o To increase exportation of manufactured goods
o To achieve dispersion of industries
o To improve technology
o To attract foreign investment
o To increase private sector participation
o To increase local content of industrial output.
SUMMARY
• This unit has been able to define vision and the components of vision. It
identified core ideology and envisioned future as the two components of
vision. It also discussed important elements that make entrepreneurs with
vision succeed. Other key areas such as: - ways of keeping vision alive and
requirements for effective vision evaluation were also discussed. The unit
also discusses organization mission, goals and objectives.
• Goals and objectives are often used interchangeably; the major difference
has to do with the fact that goals are considered broader than objectives.
Goals can be stated in broad terms such as marketing goals, financial goals,
and production goals. When these goals are broken down to reflect specific,
measurable and timing of their accomplishment, they then become
objectives.
• Besides, in this study session we have discussed the roles of government in
supporting and regulating business activities in Sierra Leone. The study
session listed various reasons for government regulation and support. We
also listed the benefits of government regulations and support. Several
regulatory authorities/agencies were briefly discussed particularly the Acts
that established them and the functions they are established to perform.
REVIEW QUESTIONS
1. Define vision and list two important component of vision.
2. List how you will ensure your vision is brought into reality.
3. How important is vision in entrepreneurial process?
4. Explain the importance of Mission statement.
5. Why should an entrepreneurial organization have clearly
stated objectives?
6. Government regulations are uncalled for in a mixed
economy like Sierra Leone. True or False? Discuss
7. How many regulatory agencies mentioned above can you
quickly list?
8. Can you identify five objectives of Government
regulations in the business sector?
THANK YOU
UNIT 4
PRINCIPLES FOR SUCCESS IN ENTREPRENEURSHIP
4.1 Opportunity Recognition or Feasibility Studies and Market
Analysis (meaning, components and purposes)
4.2 Business Plan (meaning, components, purposes)
4.3 Analyzing and Generating Finances (Acquisition and allocation of
funds; Determining your financial needs in the process of creating a business
venture or expanding an existing one; Sources of funds for venture operation;
Reasons why entrepreneurs will require Loan facilities)
4.4 Ethics in Entrepreneurship (An Overview of Concepts in Business
Ethics; Corporate Ethics Policies; International Business Ethics; Importance of
Business ethics; Necessity of ethics in Business and society; ethical issues and
approaches in different economic systems)
4.5 Management of Entrepreneurial Human Resources (meaning,
types, and managerial strategies)
4.6 Management of Other Entrepreneurial Resources (meaning, types
- materials, machines/tools, methods, and market, and management
strategies)
INTRODUCTION
• This study session introduces you to:
 Feasibility studies and how to write a business plan.
 Writing a Market plan and Sales plan.
 Analyzing and Generating Finances
 Ethics in Entrepreneurship
 Customer relationship management
 Management of Entrepreneurial Human Resources
 Management of Other Entrepreneurial Resources
FEASIBILITY STUDIES
 Feasibility studies comprises of comprehensive, detailed
information about ones’ business structure, the products and
services, the market, logistics of how one will actually deliver a
product or service, the resources one needs to make the business
run effectively, as well as other information about the business
(Women in Business, 2020). A Business Feasibility Study can also
be defined as a controlled process for identifying problems and
opportunities, determining objectives, describing situations,
defining successful outcomes, and assessing the range of costs and
benefits associated with several alternatives for solving a problem
(Thompson, 2015).
 In short, feasibility studies will be required to address things like
where and how the business will operate, succeed, and serve as a
valuable tool for developing a good business plan.
 Even if you have a great business idea you still have to find a cost-
effective way to market and sell your products and services.
COMPONENTS OF FEASIBILITY STUDIES
1. Executive Summary: is a summary of all key sections of the BFS
and should work as a separate, stand alone document.
2. Product/Service: describe in simple language how customers
would use and buy the product or service.
3. Technology: describe additional or ongoing research and
development needs.
4. Intended Market Environment: Define and describe the target
market(s). Distinguish between end users and customers.
5. Competition: Describe direct and indirect competition (as it
pertains to the target markets only).
6. Industry: Clearly define and describe the industry in which the
enterprise operates.
7. Business Model: Describe the proposed enterprise's business
model.
8. Marketing and sales strategy: Layout the basic marketing and
sales strategies.
COMPONENTS OF FEASIBILITY STUDIES (cont…)
9. Production/operating requirements: Describe enough of how and
where the enterprise will manufacture, source or create and
deliver the final product or service to be able to estimate costs.
10. Management and personnel: List the proposed key managers,
titles, responsibilities, relevant background, experience, skills,
costs, and personnel requirements.
11. Regulations/environmental issues: Outline non-economic forces
that might affect the prospects of the firm: Key government
regulations and the enterprise’s plans for compliance; any
environmental problems on property, plans to address the
problems, and their cost and Political stability, if applicable.
12. Financial Projections: Some core components of this part of the
report are listed below:
(a) Balance Sheet Projections - Three Years & Highlight Inflows of
Capital;
(b) Income Projections - Year I : Monthly or quarterly, years 2 and
annually;
(c) Cash Flow Projections - Year I : Monthly or quarterly; Years 2
and 3 annually.
13. Break-Even Analysis - When will the firm begin to turn a profit.
14. Cost Benefit Analysis - Will the business provide a viable return on
investment for the owner and/or the investors?
15. Capital requirements and strategy: funding (equity, projected
revenue or assets
16. Final findings and recommendations: regarding the viability of
putting the business idea into practice should be honest, short and
direct.
A significant component of the findings should be related
to the likelihood of success, projected return on investment
and how any identified risk should be mitigated.
When making the findings or recommendations arising

from the Business Feasibility Study discuss the viability of
the proposed business venture in terms of:
1. Market Viability
2. Technical Viability
3. Business Model Viability
4. Management Model Viability
5. Economic and Financial Model Viability
6. Exit Strategy Viability
IMPORTANCE OF FEASIBILITY STUDIES
 The information you gather and present from your
feasibility study will help you.
This is because
1. It serves as the standard or yardstick for assessing performance of
envisaged business;
2. It helps to list in detail all the things you need to make the
business work;
3. It helps to identify logistical and other business-related problems
and solutions;
4. It helps to develop marketing strategies to convince a bank or
investor that your business is worth considering as an investment;
5. It serve as a solid foundation for developing your business plan.
6. It provides important information necessary for accurate decision
making in relation to proposed project.
BUSINESS PLAN
• The term “business plan” has different meanings to
different people.
 Banks that release their own planning guidelines consider
formal business loan applications to be synonymous with
business plans.
 Venture capitalists see them as investment proposals,
purely fund raising documents.
 Corporate managers think of them in terms of
departmental budgets and financial forecasts.
 A Business Plan describes a business opportunity.
 Business plan is like the life plan for an entrepreneur.
BUSINESS PLAN (cont…)
 A Business Plan is like a road map because it tells you
what to expect and what alternative routes you can take
to arrive at your destination.
 A business plan is a document that outlines all aspects of
a business, including its mission, goals, management
structure, product offerings and financial information.
 Before you begin writing your business plan you need to
identify how, where, and to whom you intend to sell a
product or provide a service.
 You also need to assess your competitive environment
and understand how much money you need to start your
business and keep it running until it is established
(Market Research).
WRITING A BUSINESS PLAN
 Creating a business plan is an important step in the process of
creating a new business.
 Business owners usually write a business plan before starting their
business venture.
 Business plans should include a market analysis that contains a
competitive analysis, business owner’s idea, financial needs for
starting the business, expected sales or profitability, and an analysis
on the target market or demographic groups in the economic
marketplace.
 This information provides banks, lenders and investors with
information when making decisions about loaning startup capital to
the business.
 Thinking about competition in the planning stages before launching
a business can help entrepreneurs avoid costly mistakes. Hence,
Business plans also provide a roadmap for operating the business.
COMPONENTS OF A WRITTEN BUSINESS PLAN
• A written Business Plan should contain the following:
1. The Business Idea: An outline and description of the product or
service and background on the industry.
2. The Entrepreneurs: A history of the founders of the business
including their skills, abilities and proposed ownership structure.
3. Business Objectives: What the business intends to achieve
including long range goals.
4. The product or service technical description of the business.
5. Industry and/or legal controls · Processes and services to be
offered.
6. Financial information. 1. Capital Needs; 2. Sources of Finance; 3.
Cost of Finance; Financial Viability.
7. The market. 1. Market Research; 2. Competitive Position; 3.
Marketing Program.
8. Management and operations. 1. Personnel; 2. Legal
Considerations; 3. Premises.
QUESTIONS TO BE ANSWERED IN A BUSINESS PLAN
1. Description of the business: · What type of business are you planning (retail,
wholesale, manufacturing, tourism, hospitality, service)? · What products or
services will you sell? · What type of business is it (new, part-time, expansion,
seasonal)? · Why does it promise to be successful?
2. Marketing: · Who are your potential customers? · How will you attract and hold
your share of the market? · Who are your competitors? . How are their
businesses prospering? · How will you promote sales? · Who will be your best
suppliers and why? · Where will the business be located? · What factors will
influence your choice of location? · What features will your location have? ·
How will your building contribute to your marketing strategy? · What will your
building layout feature?
3. Organization: · Who will manage the business? · What qualifications will you
look for in a manager? · How many employees will you need and what are their
job descriptions? · What are your plans for employees’ hiring, salaries and
wages, benefits, training and supervision? · How will you manage finances? ·
How will you manage record-keeping? · What consultants or specialists will you
need? · What legal form of ownership will you choose? · What licences and
permits will you need? · What regulations will affect your business?
IMPORTANCE OF A BUSINESS PLAN
1) Planning helps you to work smarter rather than harder.
2) Business Plan keeps you future-oriented and motivates you to
achieve the results you want.
3) Perhaps most importantly, the process of completing a Business
Plan enables you to determine what commitment you need to
make to the venture.
4) Whether you are new to the world of entrepreneurship or a
seasoned veteran, a properly crafted business plan can help
solidify your vision.
5) And when you are remaking an on-going venture, a written
strategy (business plan) can help ensure its success.
 Besides, there are particular events that spur the need for a full-
scale business plan – they include the following (Cagan, 2016):
6) You plan to launch a new business, or thinking about buying a
business.
IMPORTANCE OF A BUSINESS PLAN (cont…)
7) Your business has grown substantially.
8) You want to expand your existing business into new markets.
9) You want to add a new product or product line.
 Other reasons why business plan is necessary according to

Department of Trade and Economic Development (2020) are to:
10) Control future risks, business growth, and business
environment
11) Prepare for future uncertainty
12) Ensure people development
13) Avoid sales crises, liquidity crises, succession crises, and stock
buying crises
14) Ensure work space available
TYPES OF BUSINESS PLAN
1. Startup/Investment Business Plan aim to attract partners or
investors, convince lenders that you are a safe risk or help you
answer questions about potential opportunities and stumbling
blocks before you launch your business. These plans can be very
detailed, but they often don’t contain enough information to run
the business day to day or include detailed growth strategies for
multiple years (contain general marketing information but not
complete strategies and tactics or detailed sales, advertising, public
relations and promotions plans).
2. Operating Business Plans help you operate your business
effectively. It’s a good idea to write a comprehensive business plan
from which you can work from day one. This document does not
emphasize explaining the product or service justifying an
investment but instead focuses on the role of each department. The
plan should include a complete organization chart with job titles
and descriptions, a marketing strategy, separate sales, advertising,
promotions, public relations plans, a variety of financial documents
and projections and distribution strategies.
PRINCIPLES OF PLANNING IN FEASIBILITY STUDIES AND BUSINESS
PLAN
• A plan must be:
1. Explicit: All steps completely spelled out.
2. Intelligible: Capable of being understood by those who will carry it
out.
3. Flexible: Capable of accepting change.
4. Succinctly Written: Committed to writing in a clear and concise
manner.
MARKETING PLAN AND SALES PLAN
 Promotional and marketing strategies are often first brainstormed
and written as part of an organization's marketing plan.
 If your small business doesn't have a marketing plan, you should
seriously consider developing one.
 Most marketing plans include the current or expected strategies
you have for your products, the price points of those products,
how you intend to distribute the products, and your advertising
and marketing tools.
 Thus, all about identifying your business' target market and
creating strategies for reaching those customers is contained in
the marketing plan.
 Also, detailing the strategies the business will use to sell products
and services and increase revenue is essential.
 The sales plan therefore often forms part of the larger marketing
strategy.
MARKETING PLAN (facts)
 For a startup business plan, the marketing section
includes information on the marketplace, competition,
potential customers, brand strategy, pricing, sales
projections and distribution channels and general
concepts for advertising, public relations and promotions.
 A stand-alone marketing plan begins with addressing the
marketing mix, or product, price, promotion and place of
sales. This plan explains the brand and discusses more
detailed communications efforts. It includes a budget for
the overall marketing function and breakouts of its
various subfunctions of sales, advertising, public relations
and promotions.
 Your business' marketing plan is a blueprint for reaching
your customer base.
MARKETING PLAN (facts)
 The first step in developing the marketing plan is to consider who
your target customers are. Ask yourself who your main customers
are, what they are looking for and if you are able to provide it.
 Inevitably, some marketing strategies have worked in the past;
would you be able to grow these time-tested strategies to maximize
your profits?

SALES PLAN (facts)
 A sales plan, like its name suggests, is a document that outlines
your business' goals in relation to the selling of products or
services. Typically a sales plan will be organized around central
goals for the business to reach its financial targets.
 As a base line, the goals you include in the sales plan should be
specific, measurable and relevant to the needs of your customers.
 The sales plan will often form part of the larger marketing plan for
your entity.
 So you will need to be sure to identify a target market, consider the
buying attitudes and behaviors of the customers and consider the
ins and outs of the advertising strategies you will use.
 The sales section of a startup business plan provides general sales
strategies and tactics as well as projections. Some small businesses
separate sales and marketing or put marketing under sales.
SALES PLAN (facts)
 A sales plan includes a demographic description of target
customers, how to reach them, information on the sales
strategies and tactics of the competition, pricing
rationale, selection of distribution channels and sales
support tactics, such as discounts, contests, rebates,
sales, buyer’s club, free sampling and coupons.
 Sales plans discuss the effect of different prices on
volumes, profit margins and gross profits and projects
sales volumes at different price levels.
 These plans address the use of wholesalers, retailers,
agents or reps, online sales and in-house sales reps.
 A good sales plan uses tactics that follow the goals and
strategies of the marketing plan.
IMPORTANCE OF MARKETING AND SALES PLAN
 If you have your own business, you need customers. To
find customers, you have to get their attention, but that
can be difficult to do in an age where many skip television
commercials and use ad-blockers for websites.
 It helps you figure out who your customers are, where
they get their information, how they view your company,
and what your competitor is doing. It also helps you focus
on initiatives that are likely to be successful.
 Setting Goals – Both sales and marketing plans involve
goal setting. Goal setting for a small business is an
important task because it can help to hold you, the
business owner, accountable for the tasks that will
ultimately increase your profit margins and gain new
customers.
THANK YOU
ANALYZING AND GENERATING FINANCE
Acquisition and allocation of funds is central to the success of
any business venture.
One of the main problems facing effective management of small
scale enterprises is lack of basic financial management skills
needed to guide the business venture. These skills include the
ability to keep appropriate records of financial transactions,
financial control, credit management, risk management, personal
financial discipline of the entrepreneur and ability to see the
business as separate from the owners.
For a business venture to externally raise capital needed for its
operation the financial institutions require a level of minimum
compliance with the basic issues raised above.
In addition, it is important that the entrepreneur avoid under or
over estimation of the capital requirements for its operations,
otherwise too large capital will lead to unnecessary high costs and
inadequate capital will affect the growth of the business venture.
FINANCIAL REQUIREMENTS
 Money is needed to operate and grow or expand a business.
Business may need money to purchase equipment, inventory,
create awareness, restructure or even renovation to be
properly positioned to handle challenges.
 It is often a great challenge for new business ventures to find
or accumulate the needed fund to commence or expand
operation.
 Before a business can determine the best source of finance, it
needs to identify its financial needs.
 Few of the best suggestions are the need for an entrepreneur to
answer the following questions so as to realistically determine
the volume of capital needed for the business operations:-
1. Why do I need the capital? 4. For how long will I need it?
2. How much do I need? 5. Where can I obtain it?
3. When do I need it? 6. How can I repay it?
FINANCIAL REQUIREMENTS (CONT…)
 To this end the business should prepare a business plan and a cash
flow analysis.
 The business plan will not only identify the financial requirements,
it will also help in securing finance (as a good business plan will help
convince the bank and other investors that the business is worth
backing).
 The cash flow analysis will identify when and how much any cash
shortfalls will be.
 When preparing a business plan and cash flow forecast,
consideration should be given to more than just the start-up costs.
 It will also be necessary to factor in running costs and living
expenses.
Financial planning is an ongoing part of every organisation.

START-UP FINANCE
Most new businesses need cash to get them off the
ground.
Costs need to be incurred in providing premises, buying
stock, promoting the business, etc, before the business
makes its first sale.
When looking to start up a business, finance is available
from a variety of sources:
1) using your own money, such as savings or funds derived
from remortgaging your own house
2) Money from family and friends
3) Bank loans and overdrafts
4) Outside investors
5) Grants and subsidies.
OTHER FINANCE NEEDS
Once the business is up and running, it may need to raise
finance for a number of different reasons.
a) Finance may be required simply to meet the day-to-day
running costs of the business.
b) It may be required to overcome a short-term financial
difficulty, such as the bankruptcy of a major customer.
c) Finance may be needed to finance the expansion of the
business, to fund a particular project or to cover the cost
of new equipment or new premises, or even the
acquisition of another business.
As with start-up financing, money may be available from a wide
variety of sources. The precise funding options available to the
business will, however, vary depending on the size and nature of the
business, the reason the money is required and the risk involved.
SOURCES OF FUNDS FOR VENTURE OPERATION
 Financing is the use and manipulation of money.
 Raising money for a business is one aspect of financing.
 There are different forms of raising funds open to the
entrepreneurs.
 These sources vary in terms of the volume of fund that can be
accessed, the cost of the funds and the security required to
obtain the funds.
 The choice of individual entrepreneur will be determined by the
following:
 Knowing the number of sources of funds available
 Risk involve
 The duration of financing whether it is short term or long term.
 The cost of borrowing from each source
 Government restrictions and institutional constraints
 The value and nature of assets as security or collateral.
SOURCES OF FUNDS FOR VENTURE OPERATION (cont…)
 The various sources of funds for business ventures are classified
under the following:
1. The Personal and family – sources of finance is peculiar to a
new venture, although it may also be applicable to an existing
venture particularly loans from friends and relations.
Examples include
(a) Savings and Crowd funds (“OSUSU”)
(b) Loan schemes (secured and unsecured loans)
(c) Loans and sometimes gifts from family and friends
(d) Benefits and severance
(e) Inheritance and winnings from mercury/lottery/competitions
(f) Credits and borrowings
(g) Selling of possessions
(h) Getting a mortgage or remortgaging the home or a second
property.
PERSONAL AND FAMILY SOURCES OF FUNDS
Careful consideration should be given to the use of personal funds
to fund a business and to the costs of funding a business in this way.
For example, the use of credit cards is very expensive and is not a
viable long-term funding option, although this could be used to
overcome a temporary difficulty.
Care should also be taken not to over extend oneself or take risks
that one is not happy to take. While self-financing the business
provides a high degree of control, if things do not work out, it may
mean losing the family home.
When self-financing a business, consideration should also be given

to the amount of money needed for day-to-day living costs. This may
mean that it is not advisable to sink all one’s savings into the business
as these may be required to live on. A prudent approach is advisable
and you should never underestimate how long it will take for the
business to turn a profit.
INTERNAL SOURCES OF FUNDS
2. Internal Sources – of funds is peculiar to an existing venture.
The internally generated funds can emanate from the
following sources:
(a) Retained profits
(b) Provisions for tax, bad debts and depreciation.
(c) Reducing current asset (sale of stock).
(d) Debt collection
(e) Disposal of surplus noncurrent assets and so on.
(f) Owner’s investment (start up or additional capital)
(g) Additional Partners.
EXTERNAL SOURCES OF FUNDS FOR VENTURE OPERATION
3. External Sources – of funds are those that are obtained outside
the venture. The external sources can be sub-divided into
three namely;
(1) Short term finance: funds made available for use within 1 year.
Sources involve (i) purchases on credits, (ii) outstanding short
term loans from banks (iii) accrued payment such as deferred
taxation, salaries and wages, (iv) bank overdraft, etc.
(2) Medium term Finance: funds made available for use between
2 and 5 years. The main sources of medium term finance are:
(i) Bank loans (ii) Equipment Leasing (iii) Hire purchase (iv)
Finance Companies.
(3) Long term finance: funds made available for use for over 20
years. The sources of funds that fall under this category
include: (i) Equity finance/Shareholders fund (ii)
Bonds/Debenture (iii) Mortgage financing.
(4) Government grants, additional partners, etc.
REASONS WHY ENTREPRENEURS WILL REQUIRE LOAN FACILITIES
 From our discussion so far you will agree with me that potential, new and
existing entrepreneurs need loan to start or enlarge the volume of their
operations in one way or the other.
 Generally entrepreneurs will require credit facilities for the following
reasons:
1. Normal operations: An entrepreneur/small business owner may have to
borrow part of the money to run the business, especially when fund
available is not sufficient to profitably run the business venture.
2. Expansion purpose: If the business intends to expand existing operation or
acquire some highly sophisticated equipment, such business may be
required to look outward to raise needed funds.
3. Financial difficulties: There may arise some financial difficulties as a result
of general economic depressions which may require business venture to
seek financial assistance from any of the sources already discussed.
4. In addition, accumulation of high bad debts, temporary losses from
operations and some more fundamental problems may cause a business
to look outward for its finance.
THANK YOU
ETHICS IN ENTREPRENEURSHIP
INTRODUCTION
• There is no system of wealth creation without a system
of values.
• People are prepared to accept others getting high pay
and enjoying different lifestyle but only if they have the
feeling that the system is fair and that the law is the
same for everybody.
• Thus, in the above section of this study session you
learnt of how to source funds for business enterprise.
• In this section, you will learn Ethics of Entrepreneurship
what it is, why it is important, and its various types and
some desirable values that entrepreneurs should have
based on societal norms, culture and virtues.
OVERVIEW OF ETHICS CONCEPT IN ENTREPRENEURSHIP
 Philosophy of business is used to determine the
fundamental purposes of a company. If a company’s
main purpose is to maximize the returns to its
shareholders, then it could be seen as unethical for a
company to consider the interests and rights of anyone
else.
• Corporate social responsibility details the ethical rights & duties
existing between companies & the host society.
• Fiduciary responsibility refers to issues regarding the moral rights
& duties between a company & its shareholders.
• Corporate governance which is concerned with the quality of
leadership of these organizations.
• Corporate manslaughter which mirrors the misuse of corporate
ethics policies as marketing instruments.
ENTREPRENEURIAL ETHICS & CORPORATE ETHICS POLICIES
• Every entrepreneurship has a code of conduct that
applies both to the business and to its employees.
• Entrepreneurial ethics is what drives that code of
conduct.
• Entrepreneurships often voluntarily adopt principles of
corporate ethics, but sometimes those principles are
imposed by legislation.
• An entrepreneurship's business ethics can shape the way
it is seen by the world, its business partners and its
customers, so it can be key to its success.
WHAT IS ENTREPRENEURIAL/BUSINESS ETHICS)?
 Ethics is a system of moral principles governing the
appropriate conduct for a person or group of persons,
organization and institutions (Microsoft Encarta, 2018).
Entrepreneurial/Business ethics refers to the set of moral

principles that guides a company's conduct. These principles
govern every aspect of the company's life, including its
interaction with government and other businesses, its
treatment of its employees, and its relationship with its
customers.
Whenever any ethical dilemmas or controversies arise, a
business will look to these foundational principles to help
resolve those situations.
TYPES OF ENTREPRENEURIAL/BUSINESS ETHICS
 There are various types of business ethics. Both the
nature of the company's business and where the
company is located can affect which ethics it emphasizes.
The following are some of the more common business
ethics.
1. Personal responsibility
2. Corporate responsibility
3. Loyalty
4. Respect
5. Trustworthiness
6. Fairness
7. Community and Environmental Responsibility
8. Others………
EXAMPLES OF ENTREPRENEURIAL/BUSINESS ETHICS
 There are many ways businesses express their ethics.
Commonly, a business will have a code of conduct
document that informs employees of their ethical
responsibilities. Businesses may also publish a values
statement that advertises the ethical standards to which
they hold themselves. These are some examples of ways
a business might practice its ethics.
1. Data Protection
2. Customer Prioritization
3. Workplace Diversity
4. Whistleblower Protection
5. Corporate Transparency
6. Community Outreach
7. Environmental Awareness
8. Employee Compensation
ACCEPTABLE ETHICAL BEHAVIOUS IN ENTREPRENEURSHIP
• Examples of ethical behaviors in the ENTREPRENEURIAL WORLD
includes;
a) Obeying the industry's (both national & international) rules and
regulations
b) Effective communication (communicate effectively)
c) Professionalism (Standards)
d) Developing Professional Relationships
e) Taking responsibility,
f) Accountability (Being Accountable)
g) Trust (Upholding trust)
h) Mutual respect for your colleagues at the industry,
i) Working smarter
j) Showing Initiative without being told
• These examples of ethical behaviors ensures maximum
productivity output at work.
UNETHICAL BEHAVIOUS IN ENTREPRENEURSHIP
• Examples of unethical behaviors in the ENTREPRENEURIAL WORLD
includes;
a) Lies – unrealistic promises
b) Taking credit for others hard work
c) Verbal harassment/abuse
d) Sexual harassment – Sex for Job/Promotion
e) Violence
f) Non-entrepreneurial related work
g) Extended breaks
h) Theft/Embezzlement
i) Late Night Out/Unpaid Overtime
j) Corrupt practices –
k) Undue Pressure
l) Unfriendly Work Environment
HOW TO SOLVE UNETHICAL ISSUES IN ENTREPRENEURSHIP
• Examples of ways to solve unethical behaviors in the
ENTREPRENEURIAL WORLD includes;
1. Have rules and regulations
2. Accept Feedback/Complaint
3. List Consequences for Unethical Behaviors
4. Swift Justice/Disciplinary Action
CONTROVERSIAL VIEWS ON ETHICS IN ENTREPRENEURSHIP
Controversial Views On Ethics are based on the following

arguements against ethical behaviour by entrepreneurs:
1. That business and entrepreneurship is concerned with
economic sector not ethical issues and should be judged on
the basis of economic performance.
2. That expectation from entrepreneurs should be economic
performance not ethical behaviour.
3. That entrepreneurs are expected to provide goods and services
required by the society and should be judged on the basis of
quality of goods and services provided.
4. That the goal of business is profit not ethics.
5. That ethical responsibility of business is today existing laws and
other forms of business regulations.
THOSE WHO ARGUED IN FAVOUR OF ETHICAL BEHAVIOUR
 have the following arguments.
1. That entrepreneurs exist in the society, therefore, they should
uphold social norms and system.
2. That society bestowed legal person on the business and
approves entrepreneurship, it should support the society for
its continued existence.
3. That entrepreneurial self-control in behaving ethically is better
than that externally controlled by the society.
4. That the entrepreneurs depend on society as much as the
society depends on the entrepreneur in some respect, this
interdependence should be respected.
5. To preserve the power bestowed on entrepreneurs, ethical
behaviour is necessary for entrepreneurs.
On the balance, it is important that entrepreneurs and their organization
behave ethically.
IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP
There are several reasons why ethics is necessary in entrepre…:
(1) To enhance competition: ethics enhance competition when
standards are adhered to, for example the ethics of hardwork,
thrift, frugality and self-improvement were responsible for the
industrial revolution of the 18th century.
(2) To preserve legitimacy: if a company produces illegitimate
products that is claiming the values which they do not have, it
will have to struggle to keep them in the market. A company,
therefore, cannot afford to let the legitimacy of its products
come into question.
(3) To deter white-collar crime: these include offences such as
petty theft, taking sick leave when a person is not sick, getting
paid for overtime not worked, faking injury to receive
compensation, taking care of personal business at the expense
of company time, taking kick-back from suppliers and big time
crimes in corporations and ministries.
IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP (CONT…)
(4) To promote trust: ethics matter in promoting trust and
preventing debilitating contacts. Successful company
management, employees and shareholders build on network
of trust, that binds management, employees and shareholders.
Issues of fairness and division of spoils can divide a company
and make it difficult to function and it can ruin an organization
(Ogundele 2021).
(5) To ensure compliance: it makes sure the business operates
according to all applicable laws. Operating lawfully, whether on
a local or national level, maintains the business's respect
among its peers and potential clients or customers, and
enables it to continue running.
(6) To attract quality employees: Businesses that care for their
employees at every level and treat them according to the
highest ethical standards are attractive to job seekers.
.
IMPORTANCE OF ETHICS IN ENTREPRENEURSHIP (CONT…)
• To illustrate, United States law forbids companies from paying
bribes, but for Sierra Leone, it is a customary, accepted way of
doing business.
• Similar problems can occur with regard to
(1) child labour, (2) employee safety, (3) work hours, (4) wages,
(5) transfer pricing,
(6) discrimination and environmental protection laws,
(7) piracy, (8) product counterfeiting,
(9) international business prospecting,
(10) fair international trade deals,
(11) globalization and cultural imperialism,
(12) Deciding on strategies such as outsourcing production (e.g.
clothes) and services (e.g. call-centres) to low wage countries and
finally, the permissibility of international commerce with
pariah states.
THANK YOU
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
CRM is the combination of practices, strategies and
technologies that entrepreneurships use to manage and
analyze customer interactions and data throughout the
customer lifecycle. The goal is to improve customer
service relationships and assist in customer retention
and drive sales growth (Chai, 2020).
CRM systems compile customer data across different
channels, or points of contact, between the customer
and the company, which could include the company's
website, telephone, live chat, direct mail, marketing
materials and social networks.
Also, it gives customer-facing staff members detailed
information on customers' personal information,
purchase history, buying preferences and concerns.
BENEFITS OF CUSTOMER RELATIONSHIP MANAGEMENT
The use of CRM systems can benefit organizations ranging
from small businesses to large corporations, through:
1) Having customer information such as past purchases and
interaction history easily accessible can help customer
support representatives provide better and faster
customer service.
2) Collection of and access to customer data can help
businesses identify trends and insights about their
customers through reporting and visualization features.
3) Automation of menial, but necessary, sales funnel and
customer support tasks.
COMPONENTS OF CUSTOMER RELATIONSHIP MANAGEMENT
At the most basic level, CRM software consolidates
customer information and documents it into a single CRM
database so business users can more easily access and
manage it.
Over time, many additional functions have been added to
CRM systems to make them more useful.
Some of these functions include recording various
customer interactions over email, phone, social media or
other channels; depending on system
capabilities, automating various workflow automation
processes, such as tasks, calendars and alerts; and giving
managers the ability to track performance and productivity
based on information logged within the system.
COMPONENTS OF CUSTOMER RELATIONSHIP MANAGEMENT
1. Marketing automation.
2. Sales force automation.
3. Contact center automation.
4. Geolocation technology, or location-based services.
5. Workflow automation.
6. Lead management
7. Human resource management (HRM).
8. Analytics.
9. Artificial intelligence
10. Project management
11. Integration with other software (Chai, 2020).
VENDORS OF CRM SYSTEMS
The four main vendors of CRM systems are:
1. Salesforce, 2. Microsoft, 3. SAP and 4. Oracle.
 These four tend to be the choice for large corporations.
 Other providers are popular among small to midsize

businesses.
5. HubSpot, 8. Zendesk 10. WorkWise
6. OroCRM, 9. Bitrix24, 11. SuiteCRM and
7. SugarCRM (Chai, 2020).
TYPES OF CRM TECHNOLOGY
 The types of CRM technology offered are as follows:
1. Cloud-based CRM - Popular cloud-based CRM providers
include Salesforce, HubSpot and Zendesk.
2. On-premises CRM - Many cloud-based providers, such
as Salesforce and WorkWise, also offer on-premises
versions of their CRM software.
3. Open source CRM - Open Source CRM platforms such as
OroCRM, Bitrix24, SuiteCRM and SugarCRM offer
alternatives to the proprietary platforms from Salesforce,
Microsoft and other vendors.
CRM EXAMPLES IN PRACTICE
oExamples of CRM usage vary by the type and purpose of
the specific CRM system.
1. Contact center
2. Social CRM
3. Mobile CRM
4. Business-to-business (B2B) practices
o CRM system examples include marketing, sales,
customer service, and support.
o Most CRM platforms involve businesses analysing
customer interactions and improving the customer
relationship.
o This technology has been widely embraced throughout
the business world.
CUSTOMER RELATIONSHIP MANAGEMENT CHALLENGES
 For all of the advancements in CRM technology, without the proper
management, a CRM system can become little more than a glorified
database in which customer information is stored.
 Data sets need to be connected, distributed and organized so that
users can easily access the information they need.
 Companies may struggle to achieve a single view of the customer if
their data sets are not connected and organized in a single dashboard
or interface.
 Challenges also arise when systems contain duplicate customer data
or outdated information. These problems can lead to a decline
in customer experience due to long wait times during phone calls,
improper handling of technical support cases and other issues.
 CRM systems work best when companies spend time cleaning up
their existing customer data to eliminate duplicate and incomplete
records before they supplement CRM data with external sources of
information.
GUIDING PRINCIPLES FOR CRM IMPLEMENTATION SUCCESS
• To save you the pain of “implementer’s regret,” the followings are
identified eight guiding principles designed to make your CRM
selection and implementation a success.
1) Start with a vision. which your selected CRM will depend on.
2) Prepare for growth. flexibility to deal with the changes in your business
and in the market that will surely come.
3) Solicit user input. It just makes sense to consider your CRM end-users.
4) Focus on alignment. to be integrated with other technology and
productivity platforms such as email, marketing, and ERP
5) Consider your users. Your end users shouldn’t have to consult IT every time
they use the system.
6) Keep it simple. Avoid solutions with inconsistent nomenclature and little
guidance on how to navigate account entries and customer data.
7) Use a step at a time approach. Avoid being overly ambitious by deploying
CRM features that confuse or intimidate users.
8) Measure your success. Tracking and reporting metrics on a regular
schedule will assure you that your new software is achieving intended
outcomes (BroadPoint, Inc. 2019)
THANK YOU
HUMAN RESOURCES MANAGEMENT FOR ENTREPRENEURS
 Entrepreneurs cannot handle a business single handedly.
 An Entrepreneur needs to recruit, allocate persons to
different work, influence the employees and conserve
them for the growth and expansion of the enterprise.
 As there are many tasks to be performed from
establishing to the growth of a venture, the process of
Entrepreneurship is a facilitator to the needs of Human
Resource Management practices.
 This session highlights the relationship of HRM practices
with context to Entrepreneurship.
 In retaliation, research is done based on the conceptual
reading of available literature review of human resource
management practices, entrepreneurship and the
relationship between the two variables.
 INTRODUCTION
 After getting the business off the ground, in delivering
results for customers and income for him/herself, the
entrepreneur, is going to need to get help from others.
 He/she will need employees with whom to share the
workload, to introduce certain skills that he/she do not
have or to handle the ‘admin’, which does not come
naturally to him/her (and which distracts you from the
business of his/her business).
 So, he/she will begin to surround him/herself with
people. People who he/she would expect to be as
passionate about his/her business as he/she is and who
would expect to be treated as he/she would treat
him/herself..
 INTRODUCTION (cont…)
 No single person can establish an enterprise by itself.
 An entrepreneur needs help of other persons to
accomplish the desired goal of the organization.
 So, the entrepreneur needs to follow the process of
human resource management.
 Some of the most crucial functions, an entrepreneur
must perform is to recruit the required labour force,
assign work to different people, influence them to
complete their tasks and retain employees to help the
enterprise in growth and expansion.
 It is not a simple task. Thus, managing human element
and its relationship between different individuals is the
most challenging assignment to the entrepreneur.
 HRM involves determining the manpower requirement,
and the methods of recruiting, selecting, training and
developing the people for various positions,
compensation and retirement of subordinates created in
the organization.
 As entrepreneurial businesses grow the human
resource practices need to be more formal, complex,
systematized and methodical, and disbursement of
authority to the subordinates is undertaken to achieve
effective results.
 Human resources management combines leadership,
culture, diversity and human resource strategy to guide
staffing activities and expectations within an
organization.
IMPORTANCE OF HRM FOR ENTREPRENEURS
The essence of ‘Human Resource Management’ which, by
the way, is not a department but the responsibility of
anyone charged with achieving results through people,
especially the CEO or owner, who sets the tone for the
business.
Therefore, human resource management is a leadership
function within an organisation that helps to align the
workforce with the beliefs, intentions and goals of an
organisation.
It includes attracting, developing, organising and retaining
necessary skills to meet customer and shareholder
expectations, and to creating a company culture that staff
can identify with and feel a sense of belonging and purpose
– all of which helps to channel behaviour to drive the
IMPORTANCE OF HRM FOR ENTREPRENEURS (cont…)
organisation towards its desired outcomes.
 In other words, HRM for entrepreneurs can be described
in the following manner:
 Filling Organizational Position.
 Developing Competencies to challenges.
 Retaining Personnel.
 Getting right people for the right job at the right time.
 Contributing to improve organizational productivity.
 Providing job satisfaction to the employees by keeping
their morale high.
 Maintaining harmony in the organization.
 Professionalism and optimum utilization of the human
resources.
SPECIFIC ROLE OF HUMAN RESOURCES IN ENTREPRENEURSHIP
1. Leadership combines:
■ Envisioning (seeing clearly where the company is
going and what it will look like at a later point);
■ Enlisting the right people to work in the company;
■ Empowering people to excel at their jobs and
ensuring the activities done in the company will result in
a quality product or service;
■ Evaluating through performance reviews and
results;
■ Encouraging through training, recognition and
rewards; and
■ Embodying assumptions and expectations through
creating a culture and belief system that will produce
results.
Human resource management enlists skills and talent

through carefully planned recruitment steps:
1. Empower people through job descriptions and
employment contracts;
2. Evaluate activities and outcomes through
performance appraisals;
3. Encourage through performance management
agreements; and
4. Embody through policies, procedures, and defined
norms within the organisation.
Human resource management is therefore a leadership
function in an organisation.
2. A legislative framework
The legislative framework provides guidance and structure
for virtually every circumstance that could arise in
employment relationships.
Human resource management has a big role and
responsibility in helping entrepreneurs ensure that
assumptions and expectations within the organisation drive
the right behaviour.
The desired outcome for human resource management
being that staff align themselves with the organisation’s
belief system, values, structure, and take self-directed action
to help the organisation reach desired results.
Thus, enforce basic conditions of employment; by
■ Providing a framework for dispute resolution,

retrenchment, and appointing of new staff members;
■ Managing grievances and conflict in the workplace;
■ Suggesting suitable parameters in guiding collective
bargaining;
■ Helping focus employment equity development and
encouraging diversity; and
■ Structuring and funding for skill development, mentoring
and training.
Entrepreneurial leaders will seek to infuse their passion for

business into their team members’ own sense of values by
creating a working environment enabling them to behave
as entrepreneurs in their own right.
PRINCIPLES OF HUMAN RESOURCES MANAGEMENT
 HRM involves a number of principles that explain how
and by what means, HRM practices can be most
efficiently accomplished. Eight (8) important Principles
are given below:
1. The principle of job definition
2. Principle of managerial appraisal
3. Principle of management framing
4. Principle of open competition
5. Principle of continuing Development
6. Staffing is a permanent exercise
7. Staffing is a complex process
8. Staffing involves future managers
THANK YOU
MANAGEMENT OF OTHER ENTREPRENEURIAL RESOURCES
The other resources you need to start/scale-up a business
can be broken into three broad categories:
(1) educational, (2) emotional and (3) physical resources.
1. Educational Resources: Industry Know How
Perhaps the greatest thing an entrepreneur can do when
establishing/growing a new/continuing business is to gain as
much education possible. By understanding his/her
competition and gaining an in-depth knowledge of his/her
industry, he/she will be better prepared to make smarter
decisions regarding the direction of her firm. Educational
resources can be found through professional trade
associations that are geared toward his/her industry, his/her
local chamber of commerce as well as the Small Business
Administration.
MANAGEMENT OF OTHER ENTREPRENEURIAL RESOURCES (cont…)
2. Physical Resources: Premises and Equipment
Whether a small home business or a retail operation with
multiple locations, every organization must have the
appropriate physical resources to survive. This includes a
proper work space, working telephone line, adequate
information systems and effective marketing materials. This
aspect of business planning can be one of the costliest. As
such, it is important for an entrepreneur to realistically
assess his needs before making any purchases.
MANAGEMENT OF OTHER ENTREPRENEURIAL RESOURCES (cont…)
3. Emotional Resources: Support Systems
Starting a business can be an extremely stressful endeavor
for an entrepreneur to undertake. To maintain his/her sanity
as well as stay motivated, it is important he/she have a
support team that can give him/her inspirations and
guidance as needed. This team may be composed of friends
and family as well as a mentor or professional group.
SUMMARY
• Developing the business plan is one of the best ways to define the blueprint, strategy, resource,
and individual requirements for an on-going venture. A properly crafted business plan can help
solidify your vision. When you are undertaking a new venture (feasibility studies), or remaking an
old one (business plan), a written strategy can help ensure its success. Business Plans and
Feasibility studies are required as controlled process for identifying business problems and
opportunities, determining objectives, describing situations, defining successful outcomes, and
assessing the range of costs and benefits associated with several alternatives for solving a problem.
• In this study session, you have been exposed to the different ways of sourcing funds for business
enterprises. These include criteria for acquisition and allocating fund. The internal and external
sources of fund were described. The problem associated with fund for SMEs from banks were
discussed. Long term funding in terms of equity, bonds/debentures and mortgage financing were
highlighted. The section is concluded with reasons why entrepreneurs will require loan facilities.
• You have learnt in this study session the philosophical background of business ethics and you have
been exposed to the various concepts in business ethics corporate ethics policies have been
formulated to guide and regulate the behaviour of different organizational members. international
business ethics recognizes cultural differences which may also affect differences in beliefs, hence
organizations that engage in cross border business must be familiar with ethical issues in different
society. the importance of business ethics were discussed and the role of ethics in resolving
conflicting interests in business. Different economic systems in the context of conflicting legal or
cultural standards were discussed and arguments for and against adapting social contract theory to
business.
• You have as well learnt in this study session the philosophical background of customer relationship
management, human resources management for entrepreneurs and management of other
entrepreneurial resources (physical, educational & emotional).
REVIEW QUESTIONS
1. What is the importance of market analysis in a feasibility
study?
2. How many of the components of Feasibility Studies can
you remember? Make a list of them
3. Writing a business plan is time consuming and financial
wastage. Discuss.
4. How will you determine your financial needs in the
process of creating a business venture or expanding an
existing one?
5. Business ethics is unnecessary as long as an entrepreneur
can maximize profit – Discuss.
6. Discuss the following concepts: (a) CRM (b) HRM for
entrepreneurs and (3) management of other E/Resources
THANK YOU
UNIT 5
ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT
5.1 Origin of Sierra Leone.

5.2 Development of entrepreneurship in Sierra Leone.
5.3 Key issues across the Sierra Leone entrepreneurial
ecosystem.
5.4 Identifying Some Successful Sierra Leonean Entrepreneurs.
5.5 Economic Development through Entrepreneurship.
5.6 Sierra Leone’s Medium-Term National Development Plan
(MTNDP) 2019-2023.
5.7 Business Start-up.
INTRODUCTION
• You learnt many things about ethics and entrepreneurship in the operation of
an economic system in last study session.
• You will learn in this study session the historical development of some
successful Sierra Leonean entrepreneurs.
• In effect, there is a need for you to have an understanding of the origin of

Sierra Leone, the development of entrepreneurship in Sierra Leone and the
peculiarities of Sierra Leonean business environment and Sierra Leonean
entrepreneurs. This is important because the Sierra Leonean entrepreneurs,
unlike their counterparts in other parts of the world, face challenges that are
peculiar only to the Sierra Leonean business environment.
• Also you will learn about some Successful Sierra Leonean Entrepreneurs, the
importance of entrepreneurship in economic development and also the roles
of entrepreneurs in nation building.
• You will also learn about the Sierra Leone’s Medium-Term National
Development Plan (MTNDP) 2019-2023 especially the objectives of the vision.
LEARNING OBJECTIVES
 At the end of this study session, you should be able to (with 100%
accuracy):
 Explain the origin of contemporary Sierra Leone
 Describe the development of entrepreneurship in Sierra Leone
 Differentiate between the ordinary entrepreneur and social
entrepreneur.
 Identify and discuss notable Sierra Leonean entrepreneurs and
social entrepreneurs.
 Describe the peculiarities of Sierra Leonean business
environment as it affects the Sierra Leonean entrepreneur.
 Discuss the importance of entrepreneurship to economic
development
 List and discuss the roles of entrepreneurship in nation building
 Discuss the Sierra Leone MTNDP 2019-2023
 Start up own business
AN OVERVIEW OF THE EVOLUTION OF CONTEMPORARY SIERRA LEONE
 Sierra Leone was colonized in 1787 by freed slaves

arriving from England; other groups followed from Nova
Scotia (1792) and Jamaica (1800). They were sponsored
and governed by the private Sierra Leone Company until
1808, when Britain made Sierra Leone a crown colony.
 In 1816 the British founded the colony of Bathurst at the

mouth of the Gambia River. Both colonies served as
bases for the British effort to block the slave trade along
the coast. Later in the century British rule spread to the
interior of Sierra Leone and the Gambia. Both interiors
became protectorates governed
through indigenous rulers.
(cont…)
 Sierra Leone, a country in West Africa, has a special
significance in the history of the transatlantic slave trade as
the departure point for thousands of west African captives.
The capital, Freetown, was founded as a home for
repatriated former slaves in 1787.
But the country's modern history has been overshadowed
by a brutal civil war that ended in 2002 with the help of
Britain, the former colonial power, and a large United
Nations peacekeeping mission.
Sierra Leone has experienced substantial economic
growth in recent years, although the ruinous effects of the
civil war continue to be felt.
The country is also rich in diamonds and other minerals.
(cont…)
The trade in illicit gems, known as "blood diamonds" for
their role in funding conflicts, perpetuated the civil war.
The government has sought to crack down on the trade.
Global interest in Entrepreneurship has risen in recent
years as policy-makers recognize its strategic significance for
economic growth and development.
The predominant focus has been, creating a favorable
environment for entrepreneurial development; the
entrepreneurial ecosystem.
Like other developing economies, Sierra Leone is
experiencing an entrepreneurial awakening in its efforts to
partake in the global entrepreneurial ecosystem-building
trend.
THE STATE OF ENTREPRENEURSHIP IN SIERRA LEONE
 Introduction An entrepreneurial ecosystem is
characterized by eight key pillars: (1) Business Support, (2)
Finance, (3) Human Capital, (4) Culture, (5) Policy, (6)
Research & Development, (7) Infrastructure, and (8)
Access to Markets.
• Investing in these pillars accelerates growth
entrepreneurship and market system performance which
are vital for job and wealth creation in Sierra Leone.
• Sierra Leone Opportunities for Business Action (SOBA), a
DFID-funded private sector and market systems
development programme, conducted an analysis on the
state of entrepreneurship in Sierra Leone.
THE STATE OF ENTREPRENEURSHIP IN SIERRA LEONE (cont…)
 Unlike preceding approaches which concentrate on the
firm, the entrepreneurial ecosystem sees the individual
entrepreneur as the central player and emphasizes on the
roles of the political, economic and social contexts on the
entrepreneurial process.
 It seeks to establish a network of supporting elements
and resources, all of which are equally significant in
ensuring the entrepreneur is empowered, and value-
creating ideas and start-ups are nurtured into success.
THE STATE OF ENTREPRENEURSHIP IN SIERRA LEONE (cont…)
 The entrepreneurial ecosystem is characterized by
entrepreneurial advocates who recommend and urge
policy-makers to implement favorable or entrepreneurial-
friendly policies, investors who believe in, and are willing
to bet their money on value-creating ideas and start-ups,
readily available market intelligence, organizations to
provide skills and personal development opportunities,
storytellers, mentors and coaches willing to provide
relevant advice and support, and incubators/accelerators
to catalyze the entrepreneurial network.
PREVIOUS STATE OF ENTREPRENEURSHIP IN SIERRA LEONE
 Sierra Leone’s business community has been largely

dominated by rent-seekers, commonly known as
“businessman.” characterized by much older individuals,
usually above average income, travel overseas frequently to
buy general merchandise and resell at wholesale or retail
prices. Rent-seeking entrepreneurship is generally very
profitable.
However, the capability to generate jobs, create and
deliver value, be sustainable and foster economic
development becomes very questionable. Notwithstanding,
Sierra Leone is experiencing an entrepreneurial awakening.
An evolution from rent-seeking to value-creation is at hand.
This is a crucial and an exciting period for entrepreneurial
enthusiasts and Sierra Leoneans at large.
PREVIOUS THE STATE OF ENTREPRENEURSHIP IN SIERRA LEONE
(cont…)
 It is logical to postulate that the unremitting frustrations

caused by a worsening economy, lack of jobs for an
increasing number of graduates, very low wages for those
lucky enough to secure jobs, and lost hope for a political
saviour laid the foundation for the emergence of a value-
creating, high-potential, high growth, high impact
entrepreneurs, ignited by the global entrepreneurial trend.
This is all the more spectacular as this emergence is
dominated by young people.
ENABLING A NASCENT ECOSYSTEM FOR THE EMERGING VALUE-
CREATORS
The need for an enabled, robust and productive
entrepreneurial ecosystem becomes absolute as the surging
urge to create value, solve social problems, create wealth
and be recognized takes over the young people.
An enabled ecosystem will not only fuel their desires to
contribute to economic development, it will also guide
them, eliminate some of the many frustrations
entrepreneurs go through, and improve their chances of
success.
In order to create a robust and a thriving ecosystem, a few
issues have to be addressed. Some of which include;
1) The talks 4) Mapping the ecosystem
2) Prioritizing high potential entrepreneurs
3) Reinventing an entrepreneurial-friendly Culture
CREATORS (cont…)
1) The talks all stakeholders to engage in candid conversations on
entrepreneurship, skills development, entrepreneurial-friendly
policies and the entrepreneurial ecosystem.
2) Mapping the ecosystem by identifying, clarifying and noting down

key players.
3) Prioritizing high potential entrepreneurs - are scalable, export

oriented, generate sales and create jobs at a greater scale, and are
based on innovation. Significantly, they have a high social and
economic impact.
4) Reinventing an entrepreneurial-friendly Culture

a) encourage risk taking and failure.
b) encourage story-telling; recognize, commend and celebrate
entrepreneurial success.
CREATORS (cont…)
However, Sierra Leone’s entrepreneurial ecosystem is very

young, yet holds great potential towards contributing to
economic growth and development provided effective
home-grown solutions are implemented. Situated along the
coast of the Atlantic Ocean, blessed with a beautiful
topography, rich soil, rich in minerals, beautiful climate, the
country can thrive in tourism, agriculture and fishery, and
mining industries respectively.
KEY ISSUES ACROSS THE SIERRA LEONE ENTREPRENEURIAL
ECOSYSTEM
1. Disconnect between Business Support Services and Entrepreneurs:
Key services – marketing, tax, legal, financial services, and human
resources – are often inaccessible to entrepreneurs due to their
own lack of awareness and the services’ high cost. Many
entrepreneurs are relying on NGOs and the Government, instead of
the private sector, for these services. “In reality we have zero
support. Especially when trying something new. If you want to
branch out to a new area there is no one to support” – Female
entrepreneur, Freetown.
2. Access to Finance: Taking out credit from commercial banks or

private lenders is seen as too risky by many entrepreneurs, due to
high interest rates. Lack of any credit ranking system increased the
difficulty for investors to accurately assess an SGB’s investment
readiness. “Credit networks are all about interactions and are a
massive barrier to entry” — Private Equity Firm, Freetown.
KEY ISSUES ACROSS THE SIERRA LEONE ENTREPRENEURIAL
ECOSYSTEM (cont…)
3. Human Capital: A workforce with poor tertiary education and
entrepreneurial training, restricts the capacity at all levels within
SGBs from staff to managers to owners. There are few resources to
train and find qualified staff who are prepared to work
professionally. “Problem number one is human capital. Access to
finance is always a problem but how do you convince investors if
you don’t have a dream team?’ — Female entrepreneur,
Freetown .
4. Business Culture: A shock-prone business sector makes many
potential entrepreneurs risk-adverse. In the absence of proper legal,
identity or credit systems, almost all business dealings must be
made on trust – at great personal risk. “People here do not
collaborate with style. If you have a good idea they will steal it
from you. If you have a big problem with a partner you cannot
easily get protection from the justice and people know that – so
they bully you and delay you.” — Female entrepreneur, Freetown
DEVELOPMENTS AND SUCCESSES IN THE ENTREPRENEURIAL
ECOSYSTEM
• Business networks that promote entrepreneurial thinking are on
the rise. As success stories around small businesses emerge,
entrepreneurs are encouraged to shift towards innovation and
growth entrepreneurship. With this growth, some institutions and
services are rising to meet the needs of Sierra Leone’s nascent
entrepreneurial sector.
1. Business incubators – such as Sensi Tech Hub, Innovate Salone, and

the Impact Hub – have recently launched to provide technical tools,
research and development support, and training and mentorship
services to entrepreneurs. SOBA has led two Innovation Labs that
focus on customer validation and improved product market fit. The
curriculum included customer discovery, rapid prototyping,
relationship building, budgeting, and strategic planning.
ECOSYSTEM (cont…)
2. Business Networks and Professional Associations are growing in
number and reach. For example, Women Mean Business is an
association celebrating female entrepreneurs’ successes. Insight
Magazine, a magazine promoting the culture of entrepreneurship,
has launched and is gaining notoriety.
3. Continuing the work of the Bomba Business Competition, SOBA

has sponsored the Freetown Pitch Night, in collaboration with
privately-run business incubation and innovation support players in
Freetown, to foster linkages to markets, investors, support
providers, and capacity developers.
4. To meet the need of entrepreneurial education, two new university-

level programs, Limkokwing School of Creative Technology and
Freetown Business School, have formed to produce industry-ready
ECOSYSTEM (cont…)
graduates with curricula that emphasize technical business skills
and professionalism.
5. Collaboration between the Sierra Leone Chamber of Commerce

and industry entities have made the entrepreneurial sphere more
networked. Similarly, SOBA has facilitated emergence of a self-
sustaining and profitable professional services sector for SBGs by
hosting roundtable events with both marketing and financial
service providers.
In 2018, Sierra Leone ranked 132 out of 136 countries in the global
entrepreneurship index and particularly ranked in the bottom 10 countries for
entrepreneurship attitudes, and only moved up to 131 in 2019. However, like
many other developing economies, Sierra Leone is experiencing an
entrepreneurial awakening in its efforts to participate in the global
entrepreneurial ecosystem building process. There is renewed effort from
government, international organizations, and other key stakeholders to ensure
that Sierra Leone is not left behind in this new development.
BUSINESS ENTREPRENEURS VS SOCIAL ENTREPRENEURS
 Most businesses are created for the purpose of making profit, in
which case they are referred to as profit making businesses.
 Organisation can also be established for purposes other than profit
making in this case they are called not-for-profit or non-profit-
making businesses.
 Given this we can infer that since businesses are created by
entrepreneurs then there are two broad categories of
entrepreneurs namely:
1. Business (profit oriented) entrepreneurs – are motivated to
create businesses for the purpose of making profit; and
2. Social (non-profit oriented) entrepreneurs – are motivated to
create businesses for the purpose of solving public problems.
Note that the distinction between the business entrepreneur and

social entrepreneur does not lie only in the purpose they are
pursuing but also in the degree of risk-taking.
SOCIAL ENTREPRENEURS
 They are individuals who identify public problems and apply
business acumen to resolve them.
 Instead of only creating a venture to make profit, they
simultaneously strives to contribute to societal development and
regulate positive change by creating social and economic values.
 Hence, the success of the social entrepreneur is measured both in
terms of profit and in terms of their effect on the community via
social development.
 For while, the risk of the social entrepreneur is limited to financial
security, social activism and passion.
 Thus, though there may be elements of danger involved in social
entrepreneurship, it has very high risk pay- off in terms of the
benefits to the society.
BUSINESS ENTREPRENEURS
 They are simply called entrepreneurs or profit oriented
entrepreneurs
 Primarily, they create a venture to make profit.
 Through their CSR strategies, they simultaneously strive to
contribute to societal development and regulate positive change
by creating social and economic values.
 Hence, the success of the business entrepreneur is basically
measured in terms of profit and seldomly in terms of their effect
on the community via social development.
 For while, the risk of the ordinary entrepreneur is limited to
financial security.
It should be noted also that Sierra Leone like any other country has
its own fair share of business entrepreneurs and social
entrepreneurs.
BUSINESS ENTREPRENEURS VS SOCIAL ENTREPRENEURS
BASIS BUSINESS ENTREPRENEURS SOCIAL ENTREPRENEURS
Perceptions of Value lies in the profit the Value for the social entrepreneur lies in
Value entrepreneur and investors the social benefit to a community or
expect to reap as the product transformation of a community that
establishes itself in a market that lacks the resources to fulfill its own
can afford to purchase it. needs.
Measure of The ventures are always designed May engage in for-profit activities.
Profitability to turn profits that benefit However, they often structure their
stakeholders, such as organizations as nonprofits, or they
shareholders or private investors. donate their profits to the causes they
support.
Approach to The venture's success is gauged The degree to which minds are
Wealth Creation by how much wealth it creates. changed, suffering is alleviated or
injustice is reversed represents the
organization's success. Wealth is
simply a tool the entrepreneur uses to
effect social change.
Accountability To shareholders and other To donors and the community
investors for generating these
profits.
NOTABLE SIERRA LEONEAN ENTREPRENEURS (PRIVATE SECTOR)
1. AMBASSADOR ANTHONY NAVO (JUNIOR)
 Founder and CEO of Sierra Leone leading Media House “Africa
Young Voices (AYV) Media Empire” – Established in 2008 and
located at Welson Street, Freetown City with branches in Makeni,
Kon, Bo, UK, etc.
 AYV is a media house dealing in the business of media broad
casting in radio, TV, print and media productions. With the aim to
redefine media in S/L and beyond and empower d youth of the
nation. In short, AYV strives towards promoting the young African
Voice through the power of the media.
 He is a council member of “Sierra Leone Chamber Of Commerce”.
He serves as the Global Chairman of Commerce and as well as
the Global Chairman of all Walks Of Life (AWOL) – a “Sierra Leone
Global Charity Organisation”. Over the years, he has worked
with and supported many Talented and Celebrated Sierra Leone
Artistries during their early years of their music career.
2. MOHAMMED GENTO KAMARA
 CEO and Country Director of one of the indigenous road
construction companies in Sierra leone “Gento Construction
Company Limited or GENTO Group”
 He provides the leading edge and his experience views about
current and future developments in Sierra Leone infrastructure
sector – by building of multiple roads and bridges across the
country.
 It provides employment opportunities (employing about 1,000
people at GENTO group), and boasting agricultural production by
good feeder roads the transport of farm produce can be easy.
 The company's execution of state of the art road construction
works including the Hill cut bridge • provide job opportunities for
many companies
3. JAMES SANPHA KOROMA
 Founder and CEO of “Union Trust Bank (UTB)” established on
26/04/1995 and located at Howe Street, Freetown City with
branches in Makeni, Kono, Bo, Moyamba, Lunsar, Pujuhun,
Magburaka, Kailahun, etc.
 UTB is the only private indigenous bank in Sierra Leone with a
robust and competitive products portfolio. It has a variety of
high-quality value-added products and services tailored to
provide and deliver banking, financial and advisory solutions.
 UTB also designing, developing and delivering products and
services at affordable cost.
 UTB also create employment for the youth that is, graduates are
recruited every year as interns, part time or full-time employees.
 UTB has been very supporting in sourcing external funding to
support some critical government development initiatives.
 Besides, UTB is creating individual and national wealth.
4. MOHAMED TUNDAY MAKATY – CEO of “Grassroot
Microfinance” Established in June 2018 and Located at Kenedy
Street, Forah Bay Road Freetown City with a Branch at Porty.
5. JOE ABASS BANGURA now DAVID KAMARA – CEO of “A Call To

Business” Established in June 2018 and Located At Old Railway
Line, Freetown City with branches in Makeni, Kono, Waterloo,
Magburaka, Kambia, Kabala, Etc.
6. ALIEU MALADOR – The founder and CEO of “Malador Gas

Company” which had been in operation for over a decade now.
The company already has five filling stations across the country.
The company is currently operating in five districts: Kambia,
Kono, Bomboli, Bo, and Kenema. Adding that, the company has
employed over 300 young people since its establishment in the
country. He still has the vision to employ more Youths as a way to
create jobs for our young Sierra Leoneans.
7. PHILIP NEVILLE – CEO of “STAR TV and Standard Times
Newspaper” Located at Mammah Street, Brookfields Freetown
City.
8. HAMZA HASHIM – owner of “Sierra Juice” for several years in
Sierra Leone, pineapple and mangoes fall from trees by the
tonnes. But without an easy route to market or efficient storage
facilities in 2012 Hamza Hashim set about creating a organic juice
company as to reduce waste and give farmer better livelihood
this company started around 2016 .
9. ALHAJI ABDULAI SIDIBAY – owner and CEO of “Sierra Star
Group”. A company that is into transportation, water and
beverage housing sports entertainment and other ventures.
10. ZAINAB OLAIMATU ABDUL SHERRIF – Owner and CEO of “Big
Sister Sierra Leone (BSSL)” and “Zedzee Multimedia Consult” –
Freetown. Provides mentorship for women in a spheres of
entertainment and gives platform to excel. Aimed at nurturing
women to become celebrities and providing movies.
11. FATIMA SESAY – Founded “Unimax Sierra Leone LTD” Freetown -
in 2012 . Provides employment, specialized in logistics and supply
chain management, freight forwarding, shipping etc.
12. ALHAJI SARIJ BAH – founder and CEO of “Rugsal Trading
Company”. Located at Freetown. It was established on the 30th
October, 2017. Rugsal Trading is a company that produces
handcrafted and briquettes for cooking fuel. Rugsal trading
company provide handcrafted paper bags for shopping mall,
supermarkets, and other enterprises across the country. It also
provides briquettes for cooking fuel which help many Sierra
Leoneans and other companies across the country. Balance
regional development. Export it product to other countries.
NOTABLE SIERRA LEONEAN ENTREPRENEURS (CHARITY/NGO SECTOR)
1. ZAINAB BANGURA, JULIUS SPENCER AND JOSEPH OPALA
 Leaders of the Pro-Democracy Movement and founders of
Campaign for Good Governance (CGG) located at 11A Old Railway
Line, Tengbeh Town, Freetown. It was established on July, 1996
after the first multi-party elections in three decades.
 CGG exists to increase citizen participation in governance through
advocacy, capacity building and civic education in order to build a
more informed civic populace and a democratic state.
 CGG specializes in issues of decentralization and local governance,
democratic participation, corruption, human rights, gender, peace
building, poverty reduction strategy and budgeting.
 CGG also conduct opinion polls on developmental issues and
analysis of policies.
 CGG offers non-remunerated internships to university and college
students and new graduates both national and international, and
training sessions for individuals on developmental issues.
2. KAPRIE J.G. THORONKA
 The founder of “ChildHelp Sierra Leone” established on the 6th
October, 1994 and located at 13 Kamai Street, Makeni.
 ChildHelp Sierra Leone work towards improvement in the quality
of life through interventions that reduce vulnerability to non-
literacy, ignorance, poverty, disease, hunger, gross abuse of
human rights to improve the quality of life of children and their
families. ChildHelp promote and protect the fundamental human
rights in its geographical areas of mandate. It improved the
quality of life for poor and disadvantaged rural households and
communities.
 ChildHelp Sierra Leone affirm the values of peace, social justice
and human dignity and integrity. It improves the health,
education and livelihood conditions for communities through
elimination of poverty in the environment that led to loneliness,
hungry, suffering and untimely death.
3. REBECCA LARSSON
 Founder and CEO of “Aberdeen Women’s Centre”. Located at 2G
Off Cape Road, Aberdeen Roundabout, Freetown. It was
established on the 23rd May, 2006.
 Aberdeen Women’s Centre offers free fistula, maternal and
children health, as well as family planning service to women,
adolescent, girls and children of Sierra Leone. AWC free surgical
treatment for women suffering from obstetric fistula from all the
country. The AWC provide an outpatient children’s clinic which
treats more than 3000 babies every year.
 AWC also providing a primary care facility for children in the
surrounding community aged 15 and under, including
immunizations and health education.
 AWC provide high quality, holistic care and treatment free of
charge for adolescent girls. It also provides maternity care for
under privilege adolescent girls to deliver their babies in a safe
and secure environment.
4. MADAM FATIMA SESAY
 Founder and CEO of “UNIMAX” established on 24th September
2015 and located at 48 Wellington street Freetown.
 UNIMAX is a charitable organisation that seek to be helping
people who sick and need help.
 This organisation aims at reducing maternal death in the nation
and a case study at Port Loko Lungi specifically.
 With help of this charity organisation we have seen a gradual
decrease in the death of pregnant and suckling mothers.
 In 2015 there were 3 workers but she has employed 40 workers
which sum up to 43 workers now.
 UNIMAX Provide shelter for vulnerable children and as well
Provide pharmacy facility for vhildren to be taken care of.

5. MADAM HAJARA BOMA - Founded the “Women Mean Business
(WMB)” on the 28th April 2017, located at 28A Power Magazine
Grassfield Freetown. It is an initiative brought up by an eloquent
female who graduated at the University of Makeni in 2016. The
sole aim of this charitable organisation is to ensure vulnerable
women being empower by not depending heavily on their
husbands. Also, has widows who are beneficiaries in this
organisation.
6. JAMES FODAY LUMEH – founder of “Helpful Hands Foundation” –
established in June 12 2009. The helpful hands Foundation was
founded to provide charitable support to the homeless, Children
with disabilities, the elderly and young persons. Empower women
in transition to achieve greater economic security and self
sufficiency for themselves and their families through initiatives
that build self-esteem and selfreliance, and Enhance life skills
7. ABDUL BOBSON SANKOH
 Founded the “Community action for tge welfare of children
(CaWeC)” on the 14 October 2007. Located at 90 A Hospital road
Kambia District.
 This organisation aims at making sure children's welfare are met
by providing them with the basic social amenities such as,
construction of schools and peripheral health unit (PHU) in
deprived communities. This mission has being achieved since in
2017 and presently working on a project on how to make sure
community people especially children are safe in outbreak of the
pandemic corona virus. This impact serve as a benefit to all Sierra
Leoneans, a case study at Kambia District Mambolo chiefdom to
be specific.
 It provides employment for youths and the adults. Provides
school going materials for school going pupils. Empowers women
by giving the responsibility to take care of their children with or
without father.
NOTABLE SIERRA LEONEAN ENTREPRENEURS (PUBLIC SECTOR)
1. SIERRA LEONE BROADCASTING COPERATION(SLBC)
The SLBC is the National radio and television broadcaster in
Sierra Leone. It is owned by the Government of Sierra Leone and
is a branch of the Ministry of Information and Communications.
This radio is available across Sierra Leone and its head quarter
Freetown, Sierra Leone. The SLBC was first named Sierra Leone
Broadcasting Services (SLBS) in the year 1934. Television
broadcast started in in April 1963 as cooperation between the
SLBS and commercial interests. Coverage was extended to all
districts in 1978when the service was also upgraded to color.
Until later changed to the Sierra Leone Broadcasting Corporation
(SLBC) in June 15, 2010. The current Managing director of SLBC is
Joseph Egbnenda. One of the Economic Importance of the SLBC is
it create Job opportunities for citizens in the country. Help in
promoting sales promotion of goods and services. Help in
broadcasting information leading to Education, Entertainments
etc.
NOTABLE SIERRA LEONEAN ENTREPRENEURS (PUBLIC SECTOR)
2. NJALA UNIVERSITY (NU) - A public university located in Njala and
Bo, Sierra Leone. It is the second largest university in Sierra Leone
(after the University of Sierra Leone) and is also part of the
Universities of Sierra Leone. The largest and main campus of
Njala University is in Njala, Moyamba District; the other campus
is Bo, the second largest city in Sierra Leone.
3. UNIVERSITY OF SIERRA LEONE and many more

ENTREPRENEURSHIP AND NATION-BUILDING
The basic role of entrepreneurship in nation building is not just
increasing per capita output and income, it also includes:
1) Initiating and constituting change in the structure of business and
society. The change is accompanied by growth and increased
output which allows for wealth distribution.
2) Product evaluation process: This is the process for developing and
commercializing an innovation. This stimulates economic
development of a nation.
3) Iterative synthesis: The intersection of knowledge and social need
that starts the products development process.
4) Innovation: Innovations are of various degrees or uniqueness. (i)
Ordinary innovations. (ii) New products with little technological
changes. (iii) Technological innovations. ü New products with
significant technological advancement. (iv)Breakthrough
innovations. ü New products with some technological change.
ROLES OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
 Entrepreneurs are dynamic force in an economy, envisioning the
possibilities of new types of economic activity and doing everything
necessary to realize their visions. As a result,
1) Entrepreneurs give birth to new enterprises, new commercial
activities and new economic sectors.
2) They generate jobs for others;
3) They produce goods and services for citizens;
4) They introduce new cost-cutting or product-improving
production technologies and improved or lower-cost outputs;
5) They earn foreign exchange through exports expansion or the
substitution of imports;
6) They save, raise funds, and invest.
ROLES OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT (cont…)
7) They also generate the income and wealth that permit the
collection of taxes by governments for expenditure on human
development (education, health, and social services), physical
infrastructure and public goods generally.
8) They promote the process of learning and adapting to changing
circumstances as technology changes, market evolve; and
policies change”.
Hence, for entrepreneurship to progress the institutional

environment, the system of laws, the regulatory environment,
and basic political and economic stability have to exist and be
consistent; absence of the enabling environment will deter the
entrepreneur.
SIERRA LEONE’S MEDIUM-TERM NATIONAL DEVELOPMENT PLAN
(MTNDP) 2019-2023.
EDUCATION FOR DEVELOPMENT
A NEW DIRECTION FOR IMPROVING PEOPLE’S LIVES THROUGH
EDUCATION, INCLUSIVE GROWTH, AND BUILDING A RESILIENT
ECONOMY
The Government of Sierra Leone’s new (MTNDP) 2019–2023 has been
founded on a strong political commitment to deliver development
results that would improve the welfare of Sierra Leone’s citizens.
The plan charts a clear path towards 2023 en route to the goal of
achieving middle-income status by 2039 through inclusive growth that
is sustainable and leaves no one behind.
Four key national goals are identified – emerging from the

consultative process and grounded in the developmental state model –
for this plan period.
SIERRA LEONE’S MEDIUM-TERM NATIONAL DEVELOPMENT PLAN
(MTNDP) 2019-2023 (cont…)
Goal 1: A diversified, resilient green economy
Goal 2: A nation with educated, empowered, and healthy citizens
capable of realizing their fullest potential
 Goal 3: A society that is peaceful, cohesive, secure, and just
Goal 4: A competitive economy with a well-developed infrastructure
Human Capital Development (HCD) is at the centre of our new

MTNDP. It is the first policy cluster in the new plan
HCD is at the centre of the new MTNDP. It is the most fundamental
pathway to achieving middle-income status and sustainable
development for the country in the not too distant future.
KEY LESSONS THAT INFORM THE NEW SIERRA LEONE’S MTNDP
1) Prioritization of needs is critical to the effective

management of development expenditure and the
achievement of planned outcomes.
 Many projects in previous plans could not be achieved
within the planned time frame because of changing and
sometimes conflicting priorities.
 Many projects required longer time for consolidating solid
foundations.
Thus, the nationwide consultations for this new five-year
development plan have consistently recommended a long-
term plan for the country, from which future medium-term
plans will be derived.
KEY LESSONS THAT INFORM THE NEW SIERRA LEONE’S MTNDP (cont…)
2) Sector coordination was also weak in previous plans, leading to

duplication of some functions and gaps in others. This was coupled
with
3) Substantial off-plan and off-budget spending, Along with
4) Weak monitoring and evaluation.
Other lessons include
5) the need to increase the alignment of the NDP with global and
regional frameworks such as the Mano River Union Strategy, the
African Union Agenda 2063, the United Nations 2030 Agenda for
Sustainable Development and its 17 Sustainable Development Goals
(SDGs), and the New Deal Peacebuilding and Statebuilding Goals.
All these frameworks are critical for strengthened development

cooperation and financing for Sierra Leone’s development.
POLICY CLUSTERS AND ACTIONS OF THE NEW SIERRA LEONE’S MTNDP
 Against the above background, the new MTNDP (2019–2023) is
organized around eight policy clusters and several sub-clusters (or
broad result areas), which are presented below.
Policy Cluster 1 – Human capital development.
Policy Cluster 2 – Diversifying the economy and promoting growth.
Policy Cluster 3 – Infrastructure and economic competitiveness.
Policy Cluster 4 – Governance and accountability for results.
Policy Cluster 5 – Empowering women, children, adolescents, and
persons with disability.
Policy Cluster 6 – Youth employment, sports, and migration.
Policy Cluster 7 – Addressing vulnerabilities and building resilience.
Policy Cluster 8 – Means of implementation.
 Policy Cluster 1 – Human capital development. Systemic country
diagnostic studies suggest that Sierra Leone could only sustainably
transform its economy and achieve middle-income status with
optimal poverty reduction if the government adequately invests in
the country’s human capital. Beyond its natural resources, the
nation’s most substantial asset is its young and dynamic population,
which, like natural resources, must be properly developed to deliver
shared economic growth and meaningful poverty reduction and
prosperity for all. Under this cluster, the Government of Sierra
Leone will focus on the following broad result areas:
1.1 Ensuring free quality basic and senior secondary education;
1.2 Strengthening tertiary and higher education;
1.3 Accelerating health-care delivery;
1.4 Enhancing environmental sanitation and hygiene;
1.5 Increasing social protection; and
1.6 Advancing housing and land management
Policy Cluster 2 – Diversifying the economy and promoting growth.
 To effectively transform the economy, ensure increased domestic
financing of programmes, and build resilience against external
shocks, the government is committed to economic diversification.
 Promoting productivity and capturing more of the value chain of its
products underscores the strategy in this cluster.
 Under this cluster, the government will focus on the following broad
result areas:
2.1 Improving productivity and commercialization of the agricultural sector;
2.2 Improving productivity and sustainable management of fisheries and the
marine sector;
2.3 Revitalizing the tourism sector;
2.4 Revamping the manufacturing and services sector;
2.5 Improving the management of oil and gas exploration and production;
2.6 Improving the management of mineral resources; and
2.7 Promoting an inclusive rural economy.
Policy Cluster 3 – Infrastructure and economic competitiveness.
 Promoting infrastructure and economic competitiveness is another
critical enabler of socio-economic development and transformation.
 Here the role of the private sector is crucial, hence the emphasis on
private sector promotion.
result areas:
3.1 Accelerating the provision of energy supplies;
3.2 Transforming the transportation systems;
3.3 Improving the water infrastructure systems;
3.4 Improving information and communication technologies; and
3.5 Fostering private sector growth
Policy Cluster 4 – Governance and accountability for results.
 This cluster is a leading precondition for the effective and efficient
delivery of the planned outcomes in the new MTNDP. That is,
achieving the desired results for Sierra Leonean society can only be
guaranteed if the state is able to secure the requisite political buy-in
and commitment and apply fairly the appropriate legal and
regulatory institutions and property rights as part of enforcing the
rule of law. Success will require the active participation of grass-
roots communities and the general public.
 Under this cluster, the government focuses on these broad result areas:
4.1 Advancing political development for national cohesion; 4.2 Fighting corruption
and illicit financial flows; 4.3 Strengthening public financial management;
4.4 Strengthening audit services; 4.5 Promoting inclusive and accountable justice
institutions; 4.6 Building public trust in state institutions;
4.7 Strengthening public service delivery; 4.8 Strengthening decentralization, local
governance, and rural development; 4.9 Strengthening security institutions; and
4.10 Strengthening external relations for integration.
Policy Cluster 5 – Empowering women, children, adolescents, and
persons with disability.
 Pursuing special policies under this cluster recognizes the issue of
gender and the role of vulnerable groups in guaranteeing
inclusiveness and empowerment.
 This cannot be overemphasized, as women constitute more than 50
percent of the national population, while the need for adequate
investment in children from pre-primary onward has become more
crucial than ever, given the weak state of human capital
development and fluctuating economic growth in the country.
 Low investment in the talents and capabilities of persons with
disability can also lead to an inability to unleash the potential of the
economy for inclusive development.
 Under this cluster, the government will focus on the following broad result areas:
5.1 Empowering women;
5.2 Increasing investment in children and adolescents; and
5.3 Increasing investment in persons with disabilities.
Policy Cluster 6 – Youth employment, sports, and migration.
 Sierra Leone boasts of a youthful population (the population below
15 years of age is estimated at 42 percent), and providing adequate
employment and other socio-economic opportunities has become
ever more crucial.
 Livelihood difficulties and high rates of unemployment have
resulted in increased migration from rural to urban areas, as well as
from urban areas to other countries.
 Sporting activities, which have been neglected for years, present
opportunities for creating jobs, sustaining peace, and building social
and national cohesion, hence curtailing migration.
 Under this cluster, the government will focus on the following result
areas:
6.1 Increasing youth employment and empowerment;
6.2 Revitalizing sporting activities across the country; and
6.3 Addressing migration challenges.
Policy Cluster 7 – Addressing vulnerabilities and building resilience.
 Sierra Leone experienced recurring environmental disasters and
viral tragedies during the last five years, with telling macroeconomic
and general development consequences.
 This suggests the need to rethink public policy regarding
management of the environment and natural resources and
strengthening disaster early warning and response systems for
minimized vulnerabilities and increased national resilience.
result areas:
7.1 Building national environmental resilience;
7.2 Strengthening forest management and wetland conservation;
7.3 Improving disaster management governance.
Policy Cluster 8 – Means of implementation.
 This cluster presents the mechanisms set to deliver the results of the MTNDP. As
an improvement on the implementation arrangement for previous plans, and
drawing lessons from earlier plans, this new plan benchmarks the arrangements
for delivering results in a comprehensive indicator-based results framework and
policy matrix.
 Three sets of issues are presented under this cluster: (1) Financing the plan;
(2) The governance arrangements for supervising and monitoring plan
implementation; and (3) The projects and policy measures to be carried out.
The specific actions and mechanisms are as follows:
8.1 Delivering robust governance structures for supervising plan implementation;
8.2 Pursuing a sound resource mobilization strategy;
8.3 Strengthening relationships with existing development partners and
expanding the partner base;
8.4 Exploring public–private partnerships and dialogue; and
8.5 Pursuing assistance under the Millennium Challenge Corporation);
8.6 Mitigating risks by instituting a robust M&E & P/management system
8.7 Strengthening data, information, and statistical systems.
SUMMARY
• The study session adopted the reductionist’s approach to examine the concept of
the Sierra Leonean entrepreneurs. To this effect it gave an overview of the
evolution of contemporary Sierra Leone by looking at its geographic location and
size and how the present day Sierra Leone was colonized by the British in 1787.
• It also discussed the development of entrepreneurship in Sierra Leone from its
beginning during the colonial days to date.
• It examined the distinction between the business entrepreneur and the social
entrepreneur while giving examples of each using discussing some notable Sierra
Leonean business entrepreneurs and social entrepreneurs.
• Besides, the study session discussed briefly the peculiarities of the Sierra Leonean
business environment as they affect the Sierra Leonean entrepreneur.
• Again, you have learnt in this study session the importance of entrepreneurship in
economic development. The role entrepreneurship in nation building was also
highlighted. You also learnt the roles of entrepreneurship in economic
development such as employment creation, improving standard of living and many
more.
• Finally, you have also learnt about the Sierra Leone’s Medium-Term National
Development Plan (MTNDP) 2019-2023 especially the objectives of the vision,
lessons that inform it and its policy clusters and actions.
REVIEW QUESTIONS
1. Differentiate between business entrepreneurs and social
entrepreneurs
2. What are the peculiarities of the Sierra Leonean
business environment that are confronting the Sierra
Leonean entrepreneurship?
3. List the roles of entrepreneurship in nation building
4. Explain the importance of entrepreneurship in economic
development
5. List the goals of Sierra Leone’s Medium-Term National
Development Plan (MTNDP) 2019-2023
6. List the policy clusters and key activities of the Sierra
Leone’s Medium-Term National Development Plan
(MTNDP) 2019-2023

Entrepreneurship Lecture Notes 2021 - 2022 Academic Yr Acf Baf Bam HRM Final

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COURSE TITLE & Code:

COURSE LEVEL: DIPLOMA/BACHELORS DEGREE

SEMESTER THE COURSE IS DELIVERED: FIRST (1ST)

COURSE YEAR: 2 & COURSE UNITS: 5

TUESDAYS 08:30 – 10:30 = CLASS H

• You must be in the second year of your program in the ACF/BAF/BAM/HRM

UNIT–2: ENTREPRENEUR ROLE IN SOCIETY

UNIT–3: VISION, MISSION, OBJECTIVES, GOVT./BUSINESS REGULATORY AGENCIES

 The course is built on cross-curricular academic skills, by

OPTIONAL/RECOMMENDED READINGS AND OTHER

• Letter Grade: How a grade is determined (by point value or

• Every student is expected to take part in class

 Discuss the Origin and Concepts of Entrepreneur &

 These debates, notwithstanding, entrepreneurship theory has kept

1. Advise Mr. M.A.I. Conteh on the possible reasons for failure in

 The status of the economy;

Motivational Influences Non-motivational Influences

 In the previous session, you learned about what motivate

At the completion of this lesson, you should be able to (with

The terms creativity and innovation are often used

Innovation is the process of doing new things.

5. Diffusion and Implementation phase of gaining final, company

• Read more on the risks and rewards of innovation.

In the previous session, you learned about what

At the end of this study session, you should be able to

 The concept ‘business’ has been defined in different ways

 Whatever is the definition of business, it should be

Internal Environmental Factors (controllable

Within the external environment of the business are all

The major external environmental factors are:

 The External evaluation starts with the determination of market

 Also, the entrepreneur can assess the internal environment of the

 To do this effectively the entrepreneur needs to ask him/herself

 If the answers to these questions are positive/or the

 If the answers are negative/ the factors are absent, then

 After this, each factor is rated as to whether it is a major

 Examples of threats in some external environmental

 The entrepreneur can classify the overall attractiveness of a

 An effective opportunity and threat analysis is advantageous to

1. Why is business environment important to an

1.5.1 Consideration for the choice of the form of Business

At the end of this study session, you should be able to

 Sole means Single and Proprietorship means Ownership. It means

 Following are the merits and demerits of proprietorship

 A Partnership can be regarded as an improvement on sole

 Besides, four types of partnership, on the basis of liability of partners

 They envision a situation whereby people will co-operate with one

 A form of business ownership which involves a collective

 Co-operatives allow small businesses to obtain quantity discounts

 The following, according to scholars, are relevant issues the

2.1 Entrepreneurs' managerial and non-managerial roles

In this session, you are going to learn about what

At the end of this study session, you should be able to

 To perform effectively and operate a successful business, entrepreneurs have

Responsible entrepreneurs are a special breed, seeking to

 Take these strategies as examples of how your business can

 The business or entrepreneur is a part of society.

In such circumstances, the responsibility of the entrepreneur is that

• This session have examined the roles played by the

3.2 Roles of Mission In Entrepreneurship Development

3.3 Roles of Objectives In Entrepreneurship Development

3.4 Roles of Government & Business Regulatory Agencies In

• As a learner who is taking a course in entrepreneurship,