 Contents

 Background
 Analyzing Outcomes
 Entrepreneurship Training Workshop (ETW)
 Motivation

PEC
 The Entrepreneurs Age
 Some of the most significant factors that have
led to this age of entrepreneurship include:
Entrepreneurs as heroes( as model to follow)
Entrepreneurial education
Universities and colleges should include it
in course study
Demographic and economic factors
Shift to a service economy
Technology advancements
Independent life style
International opportunities
 Entrepreneurship is an art of planning, managing,
organizing, and analyzing a business undertaking
assuming the risk for the sake of profit.
 Entrepreneurs are people that notice opportunities and take
the initiative to mobilize resources to make new goods and
services.
 Intrapreneurs also notice opportunities and take initiative to
mobilize resources, however they work in large companies
and contribute to the innovation of the firm.
 Intrapreneurs often become entrepreneurs.
 Entrepreneurship: It is a philosophy or process through which
an entrepreneur seeks innovation and employment.

Entrepreneur Entrepreneurship Enterprise

Person Process or Philosophy Object

Entre – enter Pre – before Neur – Nerve Centre

Entrepreneurship can be described as a creative

and innovative response to the environment
 Analyzing Outcomes
 Internal Locus
 They control their own success or failure; that the success or
failure is not the result of chance or fate
 Believe :- that they are responsible for their own success.
- events in their life are primarily a result of their own
action actions;
- Eg.student grade (when receiving exam results,
people with an internal locus of control tend to praise
or blame themselves and their abilities)
 External Locus
 …believes that they do not have control over their own success or
failure.
 Believe that external forces, like luck, determine their outcomes.
-Eg.student grade; their belief that their teacher was biased
and that was why they failed their exams; for their poor
 Entrepreneurship Training Workshop (ETW)
 promotes behavioral changes that helps Entrepreneurs
put their ideas into action and helps fledgling
business to grow.
 Its objective is to develop entrepreneurship.
 The Entrepreneurs see
 Objectives
 Firs steps
 Opportunities

 Other see
 Problem
 Vicious circles
 Choose and Confusion
 Motivation
֍is defined as “ the extent to which persistent effort is
directed to ward a goal”
֍ The term motivation describes why a person does
something
֍ It is the driving force behind human actions.
֍ Motivation is the processes that initiate, guides, and
maintains goal-oriented behaviors.
֍ It serves as a guiding force for all human behavior
Three types of motivation

Achievement

Affiliation
 Achievement
 Set and accomplishes challenges risks
 Takes calculated risk
 Likes to receive regular feedback on their progress and
achievements
 Like to work alone
 Affiliation
 Wants to belong to the group
 Doesn't like high risk or uncertainty
 Prefer collaboration over competition
 They have a need to like other people and want others to like them.
 Power
 … wants to control and influence others.
 Likes to win agreement
 Understanding motivation can:
 Increase your efficiency as you work to word your goals

 Drive to take action

 Encourage you to engage in health-oriented behaviors

 Help you avoid unhealthy or maladaptive behaviors,

such as risk-taking and addiction

 Help you feel more in control of your life

 Improve your overall well-being and happiness

 Types of Motivation
 Extrinsic Motivation
 Factors in the external environment such as, Supervision,
benefits, and job perks
 Incentive, Power and Affiliation
 Intrinsic Motivation
 Relationship between the worker and the task
 Learning, Attitude, Achievement and creation

Motivation Behavior
driving force
initiate and directs
PEC :- it is the character traits that an entrepreneurs
should possess to become successful
The three clusters of PECs:
Achievement
Accomplished successfully by means of
exertion, skill, practice or perseverance
Planning
Is the process of thinking and organizing the
activities required to achieve a desired goal
Power
Is the ability to influence the behavior of people
 10 Personal Entrepreneurial Competencies (PECs):
opportunity seeking,
persistence,
commitment to work contract,
risk-taking,
demand for efficiency and quality,
goal setting,
information seeking,
systematic planning and monitoring,
persuasion and networking,
self-confidence.
 Achievement Cluster
opportunity seeking,
persistence,

commitment to work contract,

risk-taking,

demand for efficiency and quality.

  Corresponding behavior of PECs
 Opportunity seeking
 Being active in finding openings in the environment which can be
used in different ways
 to start a business,

 to create a new market or improve business operations.

 Acting and grabbing new business opportunities even in the most

problematic and hopeless situations Doing things before asked or
forced by the events.

 Acting to extend the business to new areas, products, and services.

 Seizing unusual opportunities to start a new business, obtain

financial, equipment, land workspace or assistance.
 Persistence
 Taking repeated action or switching to an alternative
strategy to meet a challenge or overcome an obstacle
 Doing something continuously even though others say that
you will not succeed or that you are just wasting your time
and effort
 Taking action in the face of significant obstacle
 Doing something over and over again until you get what you
think you deserve
 Demand for efficiency and quality
 Standing up straight and not giving up even during the
hardest times when you are trying to do something new or
something difficult
 Taking personal responsibility for the performance
necessary to achieve goals and objectives.
 Commitment to work contract
 Giving much time and attention to something because
you believe it is right and important
 Taking full responsibility and having the job done
efficiently to create a delighted customer
 Making a personal sacrifice or expending extraordinary
effort to complete a job
 Pitching in with workers or in their place to get a job
done
 Striving to keep customers satisfied and placing long-
term goodwill over short-term gain
 Being able to meet a deadline
 Risk-taking
 Taking risk at any of risk-taking behaviour: from high risk-
taking or moderate risk-taking to low risk-taking
 Deliberately calculating risks and evaluating alternatives
 Making a personal sacrifice or expending extraordinary effort
to complete a job
 Pitching in with workers or in their place to get a job done
 Striving to keep customers satisfied and placing long-term
goodwill over short-term gain
 Doing something that can result in anything unpleasant or
dangerous
 Taking the chances to do something which is out of your
comfort zone
 Taking action to reduce risks or controlling outcomes
 Placing self in situations involving a challenge or moderate
 Demand for efficiency and quality
 Demanding quality and efficiency not only from
himself but also from workers and suppliers
 Finding ways to do things better, faster or cheaper
 Working without errors and without wasting the time,
money and energy
 Giving quality products and the best services to
customers that equates to a good business
 Acting to do thing that meet or exceed standards of
excellence
 Developing or using procedures to ensure that work is
completed on time or that work meets agreed-upon
standards and quality
 Planning Cluster
Goal setting,
Information seeking,

Systematic planning and monitoring.

 Goal setting
 Planning every action and carefully making
decisions based on where he wants to go
 Setting goals and objectives that are personally
meaningful and challenging
 Articulating clear and specific long-range goals
 Setting measurable short-term objectives
 Gathering information from relevant resources,
which is critical to the formulation of different
business strategies
 -Should always have clear and specific
objectives– a long- term and short-term
objective—
 -they are guided by the word SMART
 Information seeking
 Gathering information from relevant resources,
which is critical to the formulation of different
business strategies.
 Seeking direct response, feedback
 Personally, seeking information from clients,
suppliers or competitors
 Doing personal research on how to provide
product or service
 Consulting experts for business or technical
advice
 Systematic planning and monitoring
 Planning by breaking large tasks down into
time-constrained sub-tasks
 Revising plans in light of feedback on
performance or changing circumstances
 Keeping financial records and using them to
make business decisions
 Ways that are used by the entrepreneurs to exercise
Systematic planning and monitoring

 Learn from mistakes

 Constantly review performance

 Concentrate on present situations

 Go back and review goals

 If still unproductive, accept changes, but find other means

to achieve goals

 Tries to change environment if the environment is the

cause of the low standard performance
 Power Cluster
Persuasion and networking,
Self-confidence.
 Persuasion and networking
Using deliberate strategies to influence or
persuade others
Using key people as agents to accomplish
own objectives
Acting to develop and maintain business
contracts
 Self-confidence
 Trusting his own skills and embracing his own
imperfections
 Completing any task or activity easier because of
self-awareness and faith in personal abilities
 Solid self-belief
 Seeking autonomy from the rules or control of others
 Striking with own judgment in the face of opposition
or early lack of success
 Expressing confidence in own ability to complete a
difficult task or meet a challenge
 የማቀድ ስብስብ
 ግብ ማስቀመጥ

 ለራሳቸዉ ትርጉም ያላቸዉን እና ፈታኝ የሆኑ ግቦችንና

ዓላማዎችን ያስቀምጣሉ፡፡
 ግልጽና የማያሻሙ የረጅም ጊዜ ግቦችን ያስቀምጣሉ፡፡
 ሊለኩ የሚችሉ የጭር ጊዜ ዓላማዎችን ያስቀምጣሉ
 What are goals and objectives?”
 Goals are general guidelines that explain what you want to achieve in your
community.

 They are usually long-term and represent global visions such as “protect
public health and safety.”

 Objectives define strategies or implementation steps to attain the identified

goals.

 Unlike goals, objectives are specific, measurable, and have a defined

completion date.

 They are more specific and outline the “who, what, when, where, and
how” of reaching the goals.

 Objectives are developed to help achieve goals by dividing them into

manageable components
 ግብን ለሰዉ ማጋራት ጥቅሙ

 ጠያቂ ማፍራት
 ሚያበረታታ ሰዉ ማፍራት
 አጋዥ ማፍራት
 ስለ ስራችን የት እንደደረስን የሚከታተለን ሰዉ ማግኘት
QOUTES

ጓደኛ የሚረዳ የሆነ ነገር ስትናግረዉ ነዉ

የዉሃ ለይ ኩበት
Information Seeking
 Objectives

Clarifying goals;

Identifying risks;

Determining priorities

Assigning responsibilities;

Defining deadlines.
 Information Seeking
 Personally seeks information from customers,
suppliers and competitors

 Does personal research on how to provide a

product or service

 Consults experts for business or technical advice

QOUTES

“ Information is power.”

“There are no foolish questions, only fools

who don’t ask questions.”

ካሞኝ ደጃፍ ሞፈር ይቆረጣል

ካለመጠየቅ ደጅ አዝማች ይቀር
Systematic planning and monitoring.
Plans by breaking large tasks down
into subtasks with clear time-frame
 Revises plans in light of feedback on
performance or changing circumstances
 Keeps financial records and use them to make
business decisions
 The good objective criteria is ″SMART″

Objective

Activity
Outcome to be achieved in the future
Action in the present
 QOUTES

ሞኝ እና ወረቀት የያዘዉን አይለቅም

አስቡ ስታስቡ ወረቀት ለይ አስቡ

 Opportunity seeking and initiation
 Does things before being asked or forced to by
events

 Takes action to extend the business into new

areas, products or services
 Seizes unusual opportunities to start a new
business, obtain financing, equipment, land,
workspace or assistance
 QOUTES

“ Where others see problems,

entrepreneurs opportunity “

ካሞኝ ደጃፍ ሞፈር ይቆረጣ

እልፍ ሲሉ ዕልፍ ይገኛል

ድሃ ሞኝ ነዉ ሞት ይመኛል
 Ring toss game

 Why we choose that position?

 Take a challenge(4-7)

 Play, have fun (8-10)

 Accomplish the task (1-3)

Quality
 Quality definitions
 Quality results from the conviction that anything can
be improve

 Quality usually comes from lack of satisfaction with

the way things are being done, people concerned
about Quality believe that there’s always a better way
to do something;

 Quality means being proud of what you do, consistent

about what you manufacture or sel. Quality means
respect;
…Contd.

 Quality is not a technical aspect or an ability.

It is a state of mind. It is a passion. It
appears in every thing you do, all the time.
Concern for quality is part of the
entrepreneur's living;
 Quality demand persistence.
  Demand for Efficiency and Quality
 Finds ways to do things better, faster and cheaper

 Acts to do things that meet or exceed standards of

excellence

 Develop and uses procedures to ensure that work

is completed on time and that work meets agreed
upon standards of quality
 QOUTES

" We would be much better if we did not want

to be extraordinarily good.“
Sigmund Freud

“ Great is the main enemy of good.“

አምራለዉ ብላ መሰለች ጦጣ
Why Quality is important?
 The relation between the two factors

Quality

Cost Time

Innovation happens when one is improved

without negatively affecting the other two .
 Product improvement exercise
 Learning happens when
 We recognize a behavior;
 We practice a behavior;
 We reinforce a behavior.
PERSISTENCE AND COMMITMENT
 Persistence
 Take action when facing significant obstacles and
challenges.

 Acts repeatedly or switches to alternative

strategies to meet a challenge or over comes an
obstacle

 Makes a personal sacrifice or extra ordinary effort

 Commitment

 Takes personal responsibility for solving problem

that may hinder accomplishing the task under the
stated conditions
 Pitches in with employees, or takes their place if
needed, to complete a task
 Strives to keep customers satisfied and places
long-term good will above short-term gain
 QOUTES

" Success in business depends 10% from inspiration

and 95% from perspiration."

" To do something and fail is experience,

Real failure is not doing anything at all."

" Failure is the first step on the road to success."

 Efficiency
 Efficient people
 Think of an efficient person you have
 How does an efficient person be have?
 Power Cluster
Persuasion and networking,
Self-confidence.
 Persuasion and Networking
 Uses deliberate strategies to influence and
persuade others
 Uses key people as agents to achieve own
objectives
 Takesaction to develop and maintain a
network of business contacts
 Independency and self-confidence
 Seeking autonomy from the rules and/or control
of others
 Keeps own point of view even when facing opposition
or initially negative outcomes
 Expressing confidence in own ability to
complete a difficult task or meet a challenge
 Difference between the situations

Authority Lack of Authority

 Clear responsibility  Obscure responsibility
 Simple task;  Complex task;
 Resources.  Obstacles.
 Power definition

 Power is the ability of having things done

when and how one wishes… of molding
changes in the world … of obtaining
cooperation and action
POWER MAP

Control

Influence

Environment
POWEER EQUATION

P = ( E + I + C)
Power equals to the addition of
Environment, Influence and Control areas
 BUSINESS SITUATIONS

Selling

Buying

Demanding
 AUTHORITY IS BASED ON

 Coercion;

 Connection;

 Competence;

 Information;

 Position;

 Identification;

 Reward.
SUCCESSFUL ENTREPRENEURS TEND TO

Use all power sources;

Easily change from one to another.
  BUSINESS PLAN
 What is a BP?
A business plan is a document that describes the
objectives of a business and which steps should be
taken to make the goals achievable, reducing risk and
uncertainty
 What is the BP useful for?
 To determine the feasibility and potential outcomes of
the venture, considering marketing, financial and
operational aspects;
 To clear the opportunities and establish the future
outcomes of the venture;
 To identify the necessary resources for starting the
operations of the new business;
…Contd.
 To develop ideas on how should the business be
conducted;
 To analyze future scenarios for the venture:
 To refine strategies and avoid mistakes;
 To assess the present stage of the company, and provide a
reference for future comparison;
 As a milestone for strategies planning, commercial
decisions, operational forecasts and budgeting the new
decisions;
 As a tool for negotiating with partners, suppliers and
customers, and also to contribute for obtaining banking
credit access.
 Whatis the BP destination?
The company;
Partners;
Suppliers;
Clients;
Investors.
 What should a BP identify?
 Market;
 Product or service;
 Potential risks and problems;
 Long-term profits;
 Cash flow needs;
 How should the business be conducted;
 Theentrepreneur's credentials to run the
business.
 BUSINESS PLAN CONTENT
Executive Summary;
Market analysis;
Marketing Plan;
Operational Plan;
Financial forecasts.
 Executive Summary
 The main points of the BP
 Business description;

 Main products/ services;

 Main clients;

 Total assets, gross revenues projection and expected

profitability;

 Estimated ROI and Breakeven point;

 Entrepreneur’s introduction.
… Contd.
 Venture’s introduction:
 Legal registration date;
 Company’s mission and vision;
 Field / sphere of work;
 Legal composition;
 Total legal assets,
 Capital sources
 Market analysis
 Competitors;

 MARKETING PLAN
 Main products of services;
 Prices and conditions for acquisition;
 Promotional strategies;
 Commercial Structure;
 Business/ Stores location.
 OPPERETIONAL PLAN
 Production plan’s layout;
 Outsourcing;
 Operational capability;
 Main operational processes;
 HR needs.
 FINANCIAL PLAN
 Total assets;
 Total investments needed;
 Running capital;
 Pre-operational costs.
 Monthly revenues expectation;
 Sales forecast.
 Cost forecast
 Unit cost(raw material, outsourcing);
 Commercial coats;
 HR costs;
 Deprecation forecast;
 Monthly fixed costs.
 FINANCIAL INDICATORS
 Breakeven Point;
 Profitability;

 ROI;

 Playback.
 SCENARIO ANALYSIS
 Toanalyze aggressive and conservative
projection, probable outcomes and preventive
actions needed;
 Main outcomes to be considered;
 On the first semester / year-sales below the
forecast,
 Delays on starting the activities;
 Marketing strategies failure;
 Financial resources needs above the predicted
budget;
 Unpredicted competitors reaction.
 BP ASSESMENT

 Assess the data – remember that your BP should answer

properly to the question  Is it worth to start this
company?;
 The BP should be periodically evaluated – to verify if the
forecasts are being fulfilled, and the reasons if not /
possible consequences for that;
 The BP should be adapted to new realities