ENTREPRENUERSHIP

OBJECTIVES.
1. Concept of entrepreneurship:
a) Meaning of entrepreneurship
b) Characteristics, Skills and contribution of entrepreneurship.
c) Importance of entrepreneurship
d) Function s of entrepreneurship activities.
2. Self- Employment.
e) Benefits of self-Employment
f) The risk management of self-Employment
g) Identify business opportunities.
Cont.…
Entrepreneurship, Is a process of initiating an ideas of starting a
business and bear a risk.
OR
Is a process of initiating and organizing all factors of production such as
land, capital and labour. OR
Refers to the ability and willingness to start up a new business. In other
words Entrepreneurship is a process of developing and managing a
business along with any of it is risk in hope of making profit.
True entrepreneurs are constantly working on developing new product
or improving existing ones.
 Cont.….
• Example; Now days instead of using Compact Disc (CD) we are using Flash
which is more safe and portable to carry compared to CD. Or HD Pc to SSD
PC.
Cont.….
• Entrepreneur.
The term entrepreneur has a broad definition in every day usage; But in
essence an
• Entrepreneur, is a person who initiate an idea to start up a business. Or
Is a person who create a new business in the face of risks and uncertainty
for the purpose of getting profit.
Or
Is a person who sees an opportunity which others do not see and take the
initiative and considerable risks to start and run a new a business in hope
of making profit.
Cont.….
NOTE: Not all businessman are entrepreneurs because most
entrepreneurs interested in making enormous profit and becoming
rich .Ordinary businessman on other hand are only concerned with
getting basic needs and good thing in life. Things like Good house, good
car and other modern luxuries.
Ordinary businessman ; Is a person who start a business based on
preconceived concept . He or she use traditional method to run the
business by selling product which are ready made.

INTRAPRENEUR; Is an entrepreneur within an already established

business. The main difference between an Entrepreneur and
Intrapreneur is that Entrepreneur are their own boss they make all big
decision, Intrapreneur are the employees.
TYPES OF ENTREPRENEURS BASED ON THE SIZE OF THE
BUSINESS:
Entrepreneurs are classified into three main based on different
classification range from the types of business that they
manage such as Trading, Agricultural and manufacturing,
as well as technical and non-technical Entrepreneurs .Hence
the classification system based on the value and size of the
business as shown below.
Cont.…
SMALL SCALE ENTREPRENEURS.
These are entrepreneurs who own and run small scale business as a sole
proprietor or partnership. They are usually employ a small number of
workers and do not have high volume of sales. They are more localized,
Employ less technology and do not have access to professional
management.

Example tailoring
Cont.
MEDIUM SCALE ENTREPRENEUR.
These are the entrepreneurs who have grown from the small scale level
but have not yet reached the large Enterprise level. They are the bridge
between small business and large corporations. They employ many
more people compared to small scale enterprises.

Man’s clothes
Cont.
LARGE SCALE ENTREPRENEURS.
These are the entrepreneurs who generally engage in large scale
enterprises. They usually employ a large number of workers and have
high volume of sales.

Iron sheet industry

CHARACTERISTICS OF ENTREPRENEUR.
Innovative.
Customers are always looking for new products or services that meet
their needs and wants.
In order to give the customers what they want or needs, Entrepreneurs
must constantly adapt to the changes in the market by creating new
products while also improving ones. Example a few days ago the most
common roofing materials in Tanzania was iron sheets. But now days
entrepreneurs adapted to modern roofing materials like roofing tiles
(which come in different color and shapes)
Cont.….
Example.
Cont.…
Risk-taking.
Entrepreneurs are risk takers. They are willing to risk their time and
money to invest in unique business in hope of a better reward in the
future.
Identifying business opportunities.
A good entrepreneur has an ability to identify various business
opportunities that are not easily identified by other people.
Information gathering.
Most successful Entrepreneurs possess good networking abilities. They
may, at a time turn to seasoned mentor’s who have been in a business
for a long time to seek guidance and valuable advice on how to
effectively run an enterprise.
Cont.…
They are also good at collecting vital information about their customers
preferences, in order to serve them well.
Efficiency.
A good and successful Entrepreneur must find a better way to efficiently
produce and deliver goods and services to customers, which are cost-
effective while at the same time do not compromise on the quality of
goods and service delivered.
Hard worker.
Entrepreneurs has ability to work for long hours with higher efficiency
without complaining or despairing .In fact most successful
Entrepreneurs have ability to work tirelessly from the starts to the end
of their lives, even at the time when their business do not perform well
Cont.…
Good leadership skills.
Entrepreneur must possess goods
leadership skills to organize
together all resources, such as
land, labour, capital and
technology, in order to maximize
production.
Cont.…..
 Locus on control.
Through internal locus on control
Entrepreneur believe that success
come from within one’s own
efforts.
Cont.
Tolerance for ambiguity.
Refers to the degree to which an individual is comfortable with uncertainty,
unpredictability, conflicting directions and multiple demand .So an
Entrepreneur should be tolerance from ambiguity in his/ her work.

Tolerance for ambiguity

SKILLS OF ENTREPRENEUR
You need to have certain skills that will enable you to be successful.
Here are some of the skills most entrepreneurs have in common:
Organization / supervision skills.
The role of any Entrepreneur is turn an original idea into a business
operation. Also the one responsible for organizing and managing the
other factors of production so that the cost of production is reduced to
the minimum.
Search for market.
The responsibility of the entrepreneur is not only to produce goods but
also sell his/he product and also be attentive to the market trend.
Cont.…
Communication skills.
In order to maintain good relationship with staff members, customers,
suppliers and other people who are vital parts of the business,
Entrepreneur must have commutation skills.
This could be through phone, email, social media or face to face
communication ;Poor communication skills can lead to
misunderstanding with employee or customers and hence decrease
productivity due to poor morale.
Ability to learn.
Entrepreneur should have ability and skills to collect business information
from different source and learn how to share experience with others.
Cont.….
Advertisement.
Entrepreneur must have ability to do advertisement, most good
entrepreneurs have an ability to explain to potential customers, why they
should buy his products. He can do this through newspapers, magazines,
radio, television and billboards. One motives here is to show the
consumers the quality of his product as compared to his competitors.

Example Asas vs azam

products
Cont.…
Creativity.
This is a process of conceiving new idea, starting and running new business
that no one thought of before. Innovators play a major rule in the inception
of different products that we use today .Modern industries produce quality
goods and services due to technology advancement. Example Mail order
business, Taking ticket online.

Mail order Business

CONTRIBUTION OF ENTREPRENEURS
Government get direct revenue.
From Entrepreneur through taxation and indirect revenue from other
trader traders local and outside the country .Example when trader
import goods from Kenya to Tanzania he or she support to pay import
tax and other tariff to the government.
Create employment opportunities.
When an entrepreneur start a new business he employs workers in order
to maximize productivity. For example medium and large scale
entrepreneurs employ workers as a managers, sales man, marketing
and security.
Cont.….
Stimulate new ideas.
New idea always result to the formation of new business. The real
entrepreneur develop new idea and start a new business. This requires
the ability to understand the needs and wants of the consumers before
starting to produce anything.
Help small business to grow.
Entrepreneur is the one of the most important figures in the
development of small business. Once the entrepreneur produce new
product, traders can buy and sell them customers and get profit.
International trade; Entrepreneur promote international trade by
selling his or her products abroad. Any entrepreneur would like to
wide market of his or her products.
THE IMPORTANCE OF ENTREPRENEURSHIP
Promote creativity.
Entrepreneurship promote creativity by starting new business.
Entrepreneur generate creative and great ideas to start and produce new
product according to the change of technology advancement and
attitude of the customers.
It improve technology.
Encourage the use of new technology, modern machine and equipment
in production process. The use of modern machine and application of
new technology motivate production in higher quality and efficiency
and simplify work. Example uses of tractor for farming, modern boat
for fishing.
Cont.…
It promote trade activities.
Entrepreneurship promote trade activities among the membership of the
community .Encouraging traders to buy varieties of products from the
producer and sell them to the consumers.
Help to raise standard of living in the community.
Entrepreneurship make the entrepreneurs to produce new products to
satisfy the needs and wants of their customers. Example through E-
commerce(Electronic commerce) shopping takes place in 24 hours in 7
days, so customers have a wider choice to choose what they want
Promote self-employment.
People who are not ready work under somebody else, can employ
themselves and start working for themselves.
FUNCTIONS OF AN ENTREPRENEUR.
The important functions performed by an Entrepreneur such as following .
 Innovation.
Entrepreneur basically an innovator who tries to develop new technology,
production etc. Innovation may involve doing new thing or doing existing
thing differently.
 To identify business opportunity.
Entrepreneur should watch to identify business opportunity around him
and then do research on what the customer really want. After that create
new ideas that will drive him to develop a product. Example demand for
hostel accommodation for University stunts who are living far from
University area.
Cont.….
 Research .
An entrepreneur is the practical dreamer and does a lot of ground
work before taking a leap in his ventures. or in other words
entrepreneur finalizes an idea only after considering a variety of option,
applicability, supplementing them with Empirical findings.
 Decision maker.
To employ and organize other factors of production in the production
process.
 Development of new market.
Function of an Entrepreneur is not only to produce a product but also
he/she need to find the market of his/her product.
Cont.…
 Risk-taking.
 Experience sharing.
 Engaging new technology.
 Planning a new business.
 To produce products.
 To sell products produced.
 To reward factors used.
 To start the business.
 To forecast demand.
SEIF- EMPLOYMENT:
Self-employment, Is a situation
where by a person employs
himself or herself and works
without being controlled by
someone else.
OR
This is earning a person living
through doing something by one
self.

Being your own boss

TYPES OF SEIF-EMPLOYMENT.
Sole trader/Proprietorship: These are start-up businesses which are
run and owned by one person .
Partnerships: This involve more than one person who are either
family member, friend or relatives who have joined forces to form up
business relationship. or
Partnership: Refers to the relationship that exist between 2 and 20
people carrying a business in common with view of making profits.
Co-operatives societies: This is a group of people with similar
business interest. Co-operative societies differ from other major forms
of business organization because they are not set up to make profit but
to help the members.
BENEFIT S OF SELF-EMPLOYMENT.
Independence.
As self-employed person has more freedom to make decision that
shapes his/her future, his/her family and business as a whole.
Enjoy the rewards gained.
All the profit gained in the business belongs to the business owner.
Unlike an employee whose financial status is linked to his employer.
Freedom of arranging daily routine.
A self-employed person is free in arrange the working time table that
suits him and he is also free to change the time table he/she fit as long as
does not drastically affect the business growth.
Cont.…
Job satisfaction.
Self-employment increase job satisfaction. People who have employed
themselves are more flexible and enjoy it more than they would if they
were employed by someone else.
Being your own boss.
You enjoy controlling each and everything around you according to
your wish. You are working freely without receiving any order from
someone else.
 Opportunity to lead others.
When you need additional employee.
DISADVANTANGES OF SELF-EMPLOYMENT
Personal sacrifice:
Entrepreneurs(Self-employed person) usually work for long hours ,
especially at the early stage of the business without much time to rest ,
some time you need to work on weakens. This can cause a lot of stress
and sometimes lead to split of the families.
Errors in decision making:
Because of great stress and luck of rest for long working hours,
entrepreneurs run risks of making error in some of the decisions they
make which can derail the business.
Burden of responsibilities. Low application sense of specialization
and division of labour. All tasks performed by one person.
RISK MANAGEMENT OF SELF-EMPLOYMENT
Risk management;
Risk management of self-employment refers to a certainty risk that arise
while a person is performing daily routine. The following are risk
management that may happen to self-employed person at work.

No job security.

When someone is self- employed, sometimes something bad can happen to
he/her business. For example if he/she gets an accent, no one compensate
him/her.
Financial problem.
Most people have ideas of starting and running business, but they fail to so
due to the insufficient of capital
Cont.….
Sacrifice:
Many self-employed people work for long hours since morning up to
night.
No retirement:
A person tend to work endlessly sometime for the whole life. And when
faced with sickness or when they get older, do not have retirement
package.
No allowance:
No allowance benefit because there is no one to provide that for
him/her. He only get reward from his effort.
 Risk taker: Self –employment is responsible for any risk may
happen in the business.
BUSINESS OPPORTUNITY.
Business opportunity, refers to a creativity of a person to identify what
kind of business he/she can do . To identify business opportunity need
creativity.
Before starting and running any business a person should have to
identify needs and wants of customers, then he/she collect different idea
and select the right one which can easily be executed. There are various
ways of identifying business opportunity such as following.
Market research.
As entrepreneur, you should understand needs and wants of customers
before starting a business. You have to do a research first to be sure about
the needs and wants of customers . Ask yourself these questions;
Cont.
 What will I improve to get more customers?
 Do my products meet the demand of the customers?
 Is business location suitable and easy for customers to reach?
 Know the strength and weaknesses of your competitors.
Choose suitable site:
You have to select good location to your business . Whether there is
higher population or less, Many competitors or less, Covered or open
area. Then you should accept the suitable site for starting business.
Availability of raw materials:
This is the most important in production process . Raw materials should
be available whether imported or produced locally.
Cont.…
Availability of power and other utilities.
T he site should have a basic facilities like water , electricity, transport
and other basic logic to business to success.
 Availability of security:
Business are usually are located in area where is high degree of
security to ensure safety of the business properties and the workers.
Search information from different sources:
Try to identify types business they run, if they are big or small . Try to
find why they operating such kind of business, are they rendering good
service to the customers at good price?
Be sure with your plan.
Ask yourself if you are ready to start and run business.
Cont.
 How am I prepared for project?
 Do I have enough capital?
 If I don’t have, where can I get from?
• These questions will help you to understand what kind of the business
you should start

THANK YOU SO MUCH

Jmaringwasi@gmail.com