Even Class PPT Entreprenuership 2024

ENTREPRENEURSHIP
LECTURER: KAMURU Charles

BSc, MSc(Econ)(Kharkov State University,
UKRAINE) HRED, GG(University of Pretoria,
SOUTH AFRICA), PhD in view (Makerere
University, UGANDA)
Tel: 0788532216, E-mail- ckamuru@gmail.com.
Labor for the future 1

MODULE OBJECTIVES
After going through this lesson you
should be able to:
Define and know the meaning of the terms
Entrepreneurship, Entrepreneur and Enterprise
Understand the major factors impeding the
growth of Entrepreneurship
04/02/24
Cont-d
Understand the contribution of
Entrepreneurship to national development
Differentiate between Wage employment
and Self-employment
Differentiate the roles of an Entrepreneur
and a Manager
Recognize the Development of
Entrepreneurship in Rwanda

Cont’d
Assess features of business environment
Explain the Competitive Edge of
Entrepreneurs.
Explore the Reasons for failure of a
Businesses
Understand the Risks involved with
Entrepreneurship
04/02/24
Cont-d
Understand Entrepreneurship in Rwanda
and its Ecosystem
Understand the Entrepreneurship
Development Policy (EDP) in Rwanda
Discuss the availability of entrepreneurial
opportunities and give examples of
successful businesses started by
entrepreneurs.(Case studies)
Write a Business Plan

Cont-d
Understand what we mean by PESTLE &
SWOT Analysis and their importance in
Business Development
QUIZ Questions for general understanding
of Entrepreneurship

CHAPTER 1
INTRODUCTION TO
ENTREPRENUERSHIP

ENTREPRENEUR
A person who sets up a business or
businesses, taking on financial risks in the
hope of profit. An entrepreneur is an
individual who creates a new business, bearing
most of the risks and enjoying most of the
rewards. The entrepreneur is commonly seen
as an innovator, a source of new ideas, goods,
services, and business/or procedures.

Cont-d
For more understanding, an entrepreneur is a
person who identifies a business opportunity,
harnesses(joins) and obtains the resources
necessary to initiate a successful business activity.
The entrepreneur implements the idea
Undertakes to operate the business
An entrepreneur is therefore a central key
individual in the society who makes things
happens for economic development.

ENTREPRENUERSHIP MEANING
In the broader sense entrepreneurship refers to the
means of stimulating innovative and creative
undertakings for a better business community or world.
Entrepreneurship-the act or process of identifying
business opportunities and gathering the necessary
resources to initiate a successful business activity.
Entrepreneurship is a French word meaning to

undertake and focuses on a business enterprise.

Cont-d
Entrepreneurship can exist in any situation –
therefore it is the creation of values through
establishing a business enterprise.
Entrepreneurship means having an idea of one’s own
and trying to implement the idea to create values on
it.
Entrepreneurship is a term which
encompasses(involves) what entrepreneurs do i.e.
Identifying a business opportunity of a particular
demand
Look at the opportunity as a process of creating,
something that did not exist.

Cont-d
Constantly searching/ harnessing ones
environment and resources to implement the
activities.
Creating a totally new product and using it as
new.
Entrepreneurship therefore is the practice of
starting a new business or revitalizing existing
businesses in response to identifying
opportunities.

Cont-d
Entrepreneurship-refers to all those activities
which are to be carried out by a person to
establish and to run the business enterprises in
accordance with the changing social, political
and economic environments.
Entrepreneurship includes activities relating to
the anticipation(expectation) of the consumers
likes and dislikes, feelings and behaviors,
tastes and fashions and the introduction of
business ventures to meet out all these
expectations of the consumers.

Cont-d
A potential entrepreneur should show the
interest to seek out investment opportunities in
the market, so that they can run the enterprise
successfully based on the identifiable
opportunities. Thus, going through the above
responsibilities of an entrepreneur, the term
entrepreneurship‘ has been finally defined as a
function which covers multiple functions from
the business development perspective.

Multiple functions of an Entrepreneur
• Building organizations.
• Providing self-employment
• Utilization of available resources
• Innovation applied to the novel (innovative)
concept
• Bringing together multiple factors of
production in a tangible manner.
• Identifying and exploiting business
opportunities within the available market

Cont-d
 Entrepreneur accepts responsibilities with
enthusiasm and endurance (stamina,
patience).
 Entrepreneur is a thinker and doer, planner
and worker.
 Entrepreneur can foresee the future, seize
market with a salesman’s persuasiveness
(eloquence) , manipulate funds with
financial talent and smell error, frauds and
deficiencies with an auditor’s precisions.

Characteristics of an Entrepreneur
An entrepreneur is a highly achievement
oriented, enthusiastic(passionate) and
energetic(active) individual. He is a business
leader.
He has the following characteristics:
An entrepreneur brings about change in the
society. He is a catalyst (promoter, chemical
agent) of change.
Entrepreneur is action-oriented, highly
motivated individual who takes risk to achieve
goals.
Cont-d
 Entrepreneur undertakes venture not for his
personal gain alone but for the benefit of
consumers, government and the society as well.
 Entrepreneur builds new enterprises. He
possesses intense level of determination and a
desire to overcome hurdles and solves the
problem and completes the job.
 Entrepreneur finds the resources required to
exploit opportunities.


Cont-d
 Entrepreneur does extraordinary things as a
function of vision, hard work, and passion.
He challenges assumptions and breaks rules.
 Although many people come up with great
business ideas, most of them never act on
their ideas.

Cont-d
Entrepreneurship is considered as a new
product‘ that would enable businessmen to
develop new form of business organization
and new business activities catering to the
changing needs of the society.

Risks Involved with Entrepreneurship
Entrepreneurship involves the following types of
risks:
1)FINANCIAL RISK: The entrepreneurship has to
invest money in the enterprise on the expectation of
getting in return sufficient profits along with the
investment. He may get attractive income or he may get
only limited income. Sometimes he may incur losses.
2)PERSONAL RISK: Starting a new venture uses
much of the entrepreneur’s energy and time .He or she
has to sacrifice the pleasures attached to family and
social life.

Cont-d
3. CARRIER RISK: This risk may be caused by a
number of reasons such as leaving a successful
career to start a new business or the potential of
failure causing damage to professional reputation.
4. PSYCHOLOGICAL RISK: Psychological risk is
the mental agonies an entrepreneur bears while
organizing and running a business venturesome
entrepreneurs who have suffered financial
catastrophes have been unable to bounce back.

Entrepreneurship in Rwanda
Rwanda is industrially backward. There are many
reasons for this condition. One of the important
reasons is lack of an entrepreneurial class. The trade
and the commerce of the state were originally in the
hands of outsiders who migrated to Rwanda for
business purposes
Majority of the people of Rwanda show no interest
in trade and commerce. Everybody wants a white-
collar job. (to be employed by the state or others)
Further adequate funds are not being channelized
into entrepreneurial activities.

Entrepreneurship Development Policy
Rwanda’s Entrepreneurship Development
Policy (EDP) intends to provide an overarching
ecosystem to support entrepreneurs with a
conducive environment for private sector
dynamism, innovation and risk-taking required
for a modern, sophisticated, and rapidly
growing economy. It builds on the existing
policies and reforms undertaken by the
Government and holistically seeks to address
the gaps within Rwanda’s entrepreneurship
ecosystem.

Cont-d
While important government policies promote
private sector development more broadly in
various sectors, the EDP reinforces, and
complements the existing policies and
strategies towards achieving increased
entrepreneurship, business growth, and job
creation in Rwanda. In designing this policy,
extensive stakeholder consultations were
conducted with central and local governments
in all provinces.

Cont-d
Entrepreneurs from start-ups and Micro,
Small, Medium and Large Enterprises, the
Private Sector Federation (PSF), Financial
Institutions, local and international
investors, business consultants, academia,
incubators, accelerators, and Development
Partners were all consulted. The US
Government supported the Rwandan
Government in the development of the EDP,
via its USAID Rwanda Nguriza Nshore
Project.

Cont-d
The comprehensive objective of the EDP is
to ensure that all seven pillars of the
entrepreneurship ecosystem function
properly, allowing Rwandan start-ups,
MSMEs, and large enterprises to grow
sustainably and profitably.

Cont-d
EDP actions address constraints identified
under each of the seven pillars of the
Entrepreneurship ecosystem in Rwanda to
achieve the following objectives:
1.Improve access to skills and know-how for
existing and potential entrepreneurs to effectively
start and manage a business;
2.Improve business support system for
entrepreneurs, including business consultants,
mentors, incubators, and accelerators;

Cont-d
3. Improve entrepreneurs’ ability to access
the finance required for business growth from
various sources, including equity, debt, and
grants from public, private, and peer-to-peer
sources.;
4. Streamline tax regimes that are supportive
to entrepreneurship development;

Cont-d
5. Expand access to domestic and export
market opportunities for entrepreneurs;
6. Improve entrepreneurs’ access to
technologies and innovations for business
growth and productivity;
7. Promote the culture of entrepreneurship
and equitable access to business opportunities
for all entrepreneurs.

ENTREPRENUERSHIP ECOSYSTEM IN RWANDA
1. Entrepreneurs
2. Start up businesses
3. Micro, small and medium Enterprises
4. Large Enterprises
5. Gatherings-to bring creative, empowered and
empowering business owners together to share
knowledge, inspiration and encouragement.
6. Funding sources
7. Service providers
8. Government

Cont-d
Venture capacity builders-eg National
Capacity Development Policy that guides the
framework for all capacity development
interventions in Rwanda. It contributes to
Rwanda's ambitions to become a middle
income country and service based economy.
Networks-Networking is establishing positive
relationships with other professionals or
potential clients and customers. It's an essential
part of growing a business and seeking new
opportunities in your career.

STATE OF ENTREPRENEURSHIP IN RWANDA
The state of entrepreneurship in Rwanda has
been improving, most notably in recent
years. Most companies in Rwanda are young
and micro. In 2014, 90 percent of operating
firms were still young, having been
established after 2006.
In 2011, 73 percent of all firms were micro-
enterprises; in 2014 this number decreased
to 65 percent.

Cont-d
While the share of micro-enterprises is still
high, this decline reflects an important growth
in the number of small and medium-sized
enterprises (SMEs) as compared to micro
businesses.
Moreover, between 2011 and 2017, the number
of large firms with more than 100 employees
more than quadrupled from 106 to 426,
representing the maturing of the Rwandan
market and increased opportunities for value
chain integration for MSMEs
Cont-d
Rwandan companies are concentrated in the
non-tradable sector. According to the 2017
Establishment Census, wholesale and retail
trade, and accommodation and food services
accounted for 77.8 percent of all firms. In
2018, the employment-to-population ratio
was 46.0 percent; 2 percentage points higher
than the one in 2017, which stood at 44.2
percent.

Major Factors impeding (hindering)
Entrepreneurship development
High Taxation Levels
Corruption and Official Harassment
Unregulated competition from outside countries
Decline in personal incomes
The high cost of finance
Lack of entrepreneurial culture
Poor transport and communication networks
Lack of skills and knowledge

Contribution of Entrepreneurship to National
Development
The economic growth, the improved quality of life, the
equitable distribution of resources and the capacity of the
economy to deal with economic, social and environmental
development.
Main objectives of national development include:
Provide basic needs to every citizen:- food, shelter, health,
security, education, clothing
Elimination / Reduction of poverty: reduce rural-urban
migration
Provision of opportunities for employment and personal
advancement
Trying to narrow the income differences between the rich
and the poor.

Cont-d
Employment Creation:
Promotion of National Productivity: This is
through production of goods and services
within the country and therefore they
contribute to the Gross Domestic Product
(GDP)
Raising Standards of Living: It’s measured
by the capacity of people of a country to buy
goods and services.

Cont-d
Entrepreneurs contribute by employing
people and giving them salaries or wages to
buy their necessities.
Conservation of foreign Exchange:
Entrepreneurs produce goods and services
that are needed by people and reduction in
importing those goods and hence the
government saves foreign exchange.

Cont-d
Export Promotion: Entrepreneurs who
produce goods and services for export earn
foreign exchange.
vi) Conservation Agent: Entrepreneurs can
contribute to conservation and utilization of
resources e.g. manufacturing a Jiko that uses
sawdust instead of wood charcoal

Cont-d
• Promotes change to the formal sector from
informal sector
• Equitable development(Reduced rural-urban
migrations).
• Development of technology through
establishment of research institutions
Government revenue through taxes.
• Facilitating community development
through participation in community dev.
Projects
Cont-d
-Providing a positive role model and
facilitating
-Competition between domestic
entrepreneurship and imported products
-Reducing dependence on imported goods and
services.

Cont-d
Rural development which in effect stimulates
competition through:
◦ Quality production methods are adopted
◦ Quality products are produced
◦ Variety goods and services are produced.
Facilitated development of the financial sector
through which;
◦ Capital accumulation is possible through savings
◦ Loaning is facilitated
◦ Development of the capital market. (Capital Markets
Authority)

MORE UNDERSTANDING ABOUT
ENTREPRENEURSHIP
Do you know that there are millions of

unemployed youth in the country and by the
time you graduate, this number would have
increased substantially?
Did you know that the original Mr. Bata was
a cobbler? And now has stores in more than
50 countries all over the world. He was not
born into a business family nor did he
possess an MBA degree.
Cont-d
Do you want to be part of that group which
keeps knocking from pillar to post, checking
with Advertisement (JOB)?

Cont-d
If your answer is NO then you can definitely
opt for a career in entrepreneurship.

ENTREPRENEURSHIP AS A
CAREER
OPTION
After attaining your
degree you will be at
the crossroads of your
life.
04/02/24
Cont-d
You will face the dilemma of choosing
what you have to do in life.

Cont-d
The vast majority of
human beings direct
their activities towards
earning a living.

Cont-d
You can choose your career from two
broad categories of options – Wage
Employment or Entrepreneurship
(generating wealth )

Cont-d If you opt for a job
then you will work for
others.

Cont-d
In case you opt for
entrepreneurship you will be
your own boss.

Cont’d
In case of wage employment one is
engaged in routine work carried on for
others for which he receives salary or
wages.
Cont-d
He has to follow instructions and execute
plans laid down by his superior.

Wage Employment Vs Entrepreneurship
•Work for Others •Own Boss
•Follow Instructions •Make own plans
•Routine Job •Creative activity
•Does not create •Creates Wealth,
wealth contributes to
GDP
IMPORTANCE OF SELF-EMPLOYMENT
 Job security
 Independence
 Need for more income
 Recognition/fame
 One gets power
DISADVANTAGES/CHALLENGES OF
SELF-EMPLOYMENT
1. Risk of capital
2. Unsteady income
3. Lack of adequate capital
4. Fatigue
SALARIED EMPLOYMENT
Advantages
1.Responsibilities are specified
2.Steady income
3.Fixed working hours
4.Minimal risk
5.Fringe benefits
DISADVANTAGES OF SALARIED
EMPLOYMENT
1. Excessive control by the employer
2. Limited income
3. Inflexibility (hardness)
4. Little achievement
DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship can be described as
a process of action an entrepreneur
undertakes to establish his enterprise .
04/02/24
ORIGIN OF THE WORD
The word ‘entrepreneur’ is
derived from the French word
‘enterprendre’ which means ‘to
undertake’.

Entrepreneurship is the ability
to create and build something
from practically nothing.
It is a knack/ability of sensing
opportunity where others see
chaos and confusion/What is not
possible.

ENTREPRENEUR: A person who
organizes and manages an
enterprise, especially a business,
usually with considerable initiative
and risk.
◦ Initiative: Readiness and ability in
initiating action.
◦ Risk: The hazard or chance of loss.
Source: Webster’s College Dictionary (Random House/McGraw Hill)
“Entrepreneurship is the attempt to
create value through recognition of
business opportunity, the management
of risk taking, and through the
communicative and management
skills to mobilize human, financial, and
material resources necessary to bring a
project to fruition.”

To put it very simply an entrepreneur
is someone who sees an opportunity,
organizes resources needed for
exploiting that opportunity and
exploits it.

FOURTH FACTOR OF PRODUCTION
In economics ENTREPRENUERSHIP is
regarded as a factor of production
together with
1. land (natural resources)
2. labor(human resources)
3. capital(Financial resources)
4. Entrepreneurship
Cont-d
Entrepreneur is a person who starts
an enterprise.
The process of creation is called
entrepreneurship.
04/02/24
The entrepreneur is the actor and
entrepreneurship is the act.
The outcome of the actor and the
act is called the enterprise
(company).

CASE STUDY
Mr. Chatterjee was a student of an
undergraduate course in Calcutta
University.
While studying, he observed that the
people in Kolkata were so busy that
they did not have time to clean their
houses.

CONT-D
He borrowed Rs. 3,000 (Rupees) and
bought a vacuum cleaner and started
cleaning houses on Saturdays, Sundays
and other holidays on payment basis.

Within a year, the demand for his
service increased and he expanded
his business by engaging more
people in his work.
Today, Mr. Chatterjee is considered
as one of the leading businessmen of
Kolkata.

Apparently, Mr. Chatterjee has been able
to visualize a business opportunity, decided
to take the risk, arrange the resources and
successfully organized them in his venture.
So, he can be termed as an Entrepreneur
and his efforts as Entrepreneurship.

CLASS EXERCISE
Make a list of at least 3 entrepreneurs in your
country and ascertain the following:
(i) Name by which the enterprise is known.
(ii) The nature of goods or service made/provided.
(iii) The scale of business.
(iv) How many employees work in the enterprise.
(vi) How old is the organization?
(vii) What goods/services did the business start with?
(viii) What has been the basic investment and what is
the present value of assets?
(viii) Any other relevant information

CHAPTER 2
QUALITIES OF AN ENTREPRENEUR

1. CREATIVITY
Creativityis the spark that drives
the development of new products
ideas or ways to do business.
It is the push for innovation and
improvement.

2. INITIATIVE:
An entrepreneur must have an innovative
aptitude(Skill), pick the right opportunity,
and initiate (begin) action.
If he/she does not initiate action at the
right time the opportunity may be lost.
Hence, the ability of an entrepreneur to
take initiative is the key to the success of
the venture to a great extent.

3. WIDE KNOWLEDGE:
An entrepreneur should have wide knowledge
of the economic and non-economic
environment of business like the market,
consumer attitudes, technology, etc.
In the absence of such adequate knowledge,

the decisions taken by him may be poor and
will not contribute to the profitability of his
business in the long run.

4. WILLINGNESS TO ASSUME RISK:
Entering any venture is full of risks and
uncertainties.
In order to deal with various kinds of risks
and uncertainties efficiently, the entrepreneur
should have willingness and necessary
foresightedness to assume risks.
The quantity and quality of risk taking would
determine the quality of business decisions.

5. OPEN MIND AND OPTIMISTIC
OUTLOOK:
An entrepreneur should have an
open mind.
He/she must possess a dynamic
and optimistic outlook so as to
predict changes in the business
environment and respond
effectively without delay.
6. ADAPTABILITY:
The entrepreneur must understand the
ground realities of the business
environment. He/she should be prepared
to adapt to the changes taking place in
the system.
Any resistance to change and delay in
responding thereto, shall lead to losing
the opportunity of taking advantage
thereof.

7. SELF-CONFIDENCE:
For achieving success in life, one
should have confidence in
himself/herself.
A person who lacks confidence can
neither do any work himself/herself nor
inspire others to work.
Self-confidence is reflected in courage,
enthusiasm and the ability to lead.

8. LEADERSHIP QUALITIES:
An entrepreneur should possess the
qualities of a good leader.
He/she should have the traits of
self-discipline, presence of mind,
sense of justice, honor and dignity
and above all, a high moral
character.

9. ORIENTATION TOWARDS HARD
WORK:
There is no substitute for hard work in life.
While running a business, one problem or
the other may occur.
The business person has to be vigilant about
these and find solutions thereof as early as
possible.
This requires hard work on the part of the
entrepreneur. He has to put in extra efforts to
ensure success of the enterprise started by
him.

ENTREPRENEURIAL
CHARACTERISTICS
 Moderate/calculated risk takers
 Take personal responsibility
 Goal-oriented/achievement oriented
 Self-confident
 Highly creative and innovative
 Opportunity seekers
 Persistent and patient
 Hardworking
 Highly persuasive
 Highly professional
FUNCTIONS OF AN ENTREPRENEUR
(A) CONCEPTION OF AN IDEA:

An entrepreneur is the person with a
creative mind who can identify business
opportunities and take steps for the
conversion of ideas into successful
business ventures, and give them a
concrete shape.

(B) PROMOTION:
As a promoter, the entrepreneur has
to conduct feasibility studies, decide
to the form of organization, assemble
the required funds and people, and
give a concrete shape to the business
proposition.

(C) INNOVATION:
An entrepreneur is also seen as an
innovator who tries to develop new
technology, products and markets.
The entrepreneur uses his creative
abilities to do new things and exploit
opportunities in the market.

(D) BEARER OF RISKS AND
UNCERTAINTY:
Starting of a new business venture
involves good amount of risk and
uncertainty.
It is the entrepreneur who assumes risks
and is prepared for the losses that may
arise because of unforeseen situations in
future.

(E) ARRANGING NECESSARY CAPITAL:
Arranging funds is one of the biggest
hurdles in setting up a new enterprise.
It is he who has to provide the initial capital
(otherwise known as ‘risk capital’ or ‘seed
capital’) for starting the ventures and then
make the necessary

(F) STAFFING:
An entrepreneur has to design the
organizational structure and recruit
suitable persons for various positions.
He also makes an estimate for skilled
and unskilled workers required and make
arrangements for their recruitment.

IMPORTANCE OF
ENTREPRENEURSHIP
1. Creation of job opportunities
2. Impact on community development
3. Enhances standard of living
4. Add to National Income
5. Balanced Regional Development
6. Reducing rural to urban migration.
7. Improves infrastructure.

ISSUES AND PROBLEMS FACED BY
ENTREPRENEURS
a)SELECTION OF BUSINESS: The entrepreneur
might be having a very good business idea.
However, successful implementation of the idea
into business activity involves a
painstaking( careful) exercise. First of all, he/she
has to study the market to know whether the idea
of products or services could be accepted by the
market.

For the purpose, the entrepreneur has to
determine the market demands of the
intended products/services and carry out
exercises to find out the projected costs
of the product or services.
In this way, the entrepreneur shall be
able to know as to whether the venture is
profitable or not.

(b) CHOICE OF FORM OF BUSINESS
ENTERPRISE:
There are various options available to the
entrepreneur as far as the choice of form is
concerned.
He She may go in for sole proprietorship, a
partnership or a joint stock company. The
choice is difficult issue.

However, there are certain lines of
business where one has no choice. For
example, take the case of banking and
insurance. These can only be taken up
by the joint stock companies.
The size of the business will determine
the form of organization.

Apparently, company form of organization
is suitable in case of large-scale operations,
while sole proprietorship or partnership is
considered more suitable for small scale and
medium scale operations.

(C) FINANCING:
The problem of arranging finance always
troubles the entrepreneur.
Without capital no business activity can
be started.
Capital is needed for the entrepreneur to
buy fixed assets like land and building,
machinery and equipment etc.

Further, finance is needed to meet
day-to-day expenses of the business.
Having built up the estimate of the
amount of capital required, the
entrepreneur may have to arrange
finance from various sources.

SOURCES OF FINANCE
Owner's Capital
Ploughed back profits
Borrowings
Issue of Shares
Overdraft
Bank Loan
Leasing

(D) LOCATION:
The problem of locating the business
unit is another issue for consideration
that should be carefully handled by
entrepreneur.

Location of a business unit depends
upon many factors like availability of
raw material, availability of transport,
power, water, nearness to market,
government policies etc
Thus, the entrepreneurs need to look at
all these factors before setting up a
business unit.

LOCATION OF BUSINESS ENTERPRISES
Availability of market
Availability of raw materials
Availability of power
Availability of transport and communication
Availability of labor
Availability of social amenities
Availability of room for expansion
Availability of water
Security
Government policy
(E) SIZE OF THE UNIT:
Size of the business is influenced by
several factors like technical, financial
and market considerations. (Qn-Provide
suitable examples to indicate deeply how technical,
financial and market considerations can impact the
size of business)

When entrepreneurs feel that they can
market the intended products or services
and can raise sufficient amount of
capital, they can start their operations in
a big way.

Cont-d
Generally, the entrepreneurs may start
their operations on small scale and
expand gradually. ( A small retail shop
growing into a huge supermarket)

(F) Suitable manpower:
If the size of business is large, the
entrepreneur has to find suitable
competent persons for various
functional areas.
He/She has to identify the right
persons for each area and motivate
them to join the set up.

OTHER PROBLEMS/CHALLENGES OF
ENTREPRENUERSHIP IN BUSINESS
Unfavorable policies
Inadequate and poor infrastructure
Limited sources of finance
Competition
Poor/lack of business management
skills
Insecurity
ENTREPRENUERS MAKE VARIOUS
CONTRIBUTIONS TO ECONOMIC
DEVELOPMENT IN THE COUNTRY
1. Employment/job creation
2. Improved quality of life/standard
3. Add to national income
4. Even distribution of income
5. Bring new technology in production
6. Increase investment
7. Increase government revenue
8. Social responsibility
PESTEL ANALYSIS
PESTEL analysis is defined as a business
impact study that aims to understand the
effects of 6 key external factors, which are
politics, economics, social, technology,
environmental, and legal.
Initially designed in 1967 as a business
planning tool, this method was then known as
PEST, with environmental and legal factors
joining the list as regulations and business
environmental factors became larger business
influences.
Cont-d
The PESTEL analysis technique is a key
tool for a company’s management team
during enterprise strategic planning. When
correctly done, this analysis technique can
help anticipate future challenges and
opportunities. This technique is especially
helpful when formulating a strategic
business plan that methodically takes both
internal and external influences on the
business into account.

PESTEL ANALYSIS FRAMEWORK
The PESTEL analysis framework is a
strategic tool used by businesses and
organizations to assess and analyze the
macro-environmental factors that can impact
their operations and decision-making.
PESTEL represents the acronym for
Political, Economic, Social, Technological,
Environmental, and Legal elements.

By examining these six categories,
businesses can gain a better understanding
of the external forces and trends that may
affect their industry and develop strategies
to adapt or capitalize on them. Here’s an
overview of each component:

Overview of PESTEL Analysis
components
Political: This is by far the largest external factor
affecting a business. This includes analysis of local,
regional, and national political landscape.
Government policies directly affect the rate of
business tax payable, employee laws, general state
of law and order, business compliances, and general
ease of doing business. For example, if the rate of
tax in one state is much higher than a relatively
comparable state that charges businesses much
lower taxes, then businesses may find it more
prudent and competitive to move their business.

Cont-d
Economic: Economic influences are macro-
financial factors such as a state or national GDP
growth, inflation or deflation rate, foreign currency
debt, federal reserve interest rates and changes, and
more. These factors play a key role in determining
target markets to sell to and where to distribute the
products or services.
These economic factors may have varied effects
depending on the type of business. For example, for
a raw material miner, a rise in the prices of the
material will have a positive effect on the business,
which is basically an inflationary environment.

Cont-d
However, other businesses that purchase
these raw materials to produce finished
goods and products will face business
challenges in absorbing these higher prices
of production.
Often it leads to a price hike of the final
product itself which is then borne by the
consumer, which may reduce demand for
the product/ service.

Cont-d
Social: While far less widely impactful than political
or economic factors, social factors can sometimes
lead to significant business effects. For example, the
theme and visuals of a marketing campaign for a
consumer-facing product would be very different in
the Middle Eastern region than that of American or
European regions.
However, if the product or service is technical and
aimed at other businesses, then such a product may
run the same campaign across regions with just a
change in language.

Cont-d
Companies catering to any consumer band will
have to keep themselves aware of the impact
of social movements, cultural shifts, and
sensitivities, not just for customers but also for
employees.
This is a key impact that factors into enterprise
human resource planning, product planning,
and marketing content.

Cont-d
For example, companies that already had a
remote-work technology stack and policies
incorporated into the work culture managed
to handle COVID lockdowns much better.
This in turn also proved to be a strategic
advantage over any competition that couldn’t
service customers or acquire new ones due to
lack of technology stack or delay in absorbing
new tech and setting policies.

Cont-d
Technological: Earlier referred to as simply
technical, the technological factors today have a
significant impact on any business. From agriculture
to SaaS, technology continues to impact product/
service efficiency, disruptive innovations, and
internal HR management efficiency.
A company that is able to study breakthroughs in
tech and its impact on the future of its products,
services, and human resources, will also be able to
better plan for business continuity and growth to
beneficially leverage these changes rather than get
caught off guard by them.

Cont-d
Additionally,many businesses are placing
increased awareness on carbon neutrality
and ecological output.
This can sometimes alter their
manufacturing, distribution, or supply
chain processes.

Cont-d
Environmental: This new addition to the
original PEST analysis was done when
enterprises in the 21st century began to
understand the real and measurable impact
of environmental factors on their bottom
line. Factors such as carbon tax, natural
disasters, availability of water and natural
resources, and human migrations can have a
significant impact, especially on certain
businesses and their future plans.

Cont-d
Legal: These are external factors emerging
out of political factors but are focused on
regulations related to labor hiring and firing,
business conduct and operations, and
taxation.
A well-known example would be the Euro
region’s GDPR regulation, which impacted
almost every business website on how they
collect visitor data.

PESTEL Analysis Examples and
Factors
A PESTEL analysis is a strategic tool used
by businesses and organizations to assess
and analyze the external macro-
environmental factors that can impact their
operations and decision-making. Here’s an
example of a PESTEL analysis for a
fictional company in the renewable energy
industry:

PESTEL ANALYSIS
A PESTLE analysis studies the key external
factors (Political, Economic, Sociological,
Technological, Legal and Environmental) that
influence an organization.
It can be used in a range of different scenarios,

and can guide people professionals and senior
managers in strategic decision making.

CONT-D
A PEST Analysis determine the political,
economic, social and technological factors
that could affect a business now and in the
future.
It's meant to help a company's leadership
predict oncoming shifts in their market and
develop strategies to adapt.

Six Dimensions of PESTEL Analysis
Below we describe each of the six
dimensions associated with PESTEL
analysis:
1. political,
2. economic,
3. socio-cultural,
4. technological,
5. environmental,
6. and legal.
ADVS OF PESTEL ANALYSIS
The advantages of PESTLE analysis
involve:
a)being cost effective,
b) providing a deeper understanding of
business,
c) alertness to threats,
d)and a method to exploit opportunities.

Categories of PESTEL Analysis
PESTLE is an acronym that stands for six
external factors affecting your business:
political, economic, sociological,
technological, legal and environmental.
Each of these can have a profound effect on

your business and varying implications, for
example, in terms of: duration of impact -
short term or long term.

Details on Categories of Pestel Analysis
1. Political Factors:
a)Government policies and regulations
b)Tax incentives for certain products
c)Internal political stability affecting trade and
investment
2. Economic Factors:
a)Economic stability and growth in the company’s
target markets
b)Exchange rates and their impact on imported
components

Cont-d
c) Consumer disposable income and its
influence on demand
3. Social factors:
a)Growing awareness and concern over
environmental sustainability
b)Changing consumer preference
c)Public perception on the goods
4. Technological factors:
a) Rapid advancement in product innovation
and technology.

Cont-d
Research and development opportunities
5. Legal Factors:
a) Environmental protection laws &regulations
b) Intellectual property protection laws for
innovative technologies
c) Health and safety regulations for employees.

YOUR SUMMARY
A. Describe your business.
1. Tell where you want to locate.
2. Name your products or services.
3. Briefly tell about your market and your
competition.
4. Tell why you and others are qualified to run the
business.
B. State your business goals and objectives.
C. Tell how much money you’ll need and where
you’ll get it.
D. Project out the business’ earnings.

YOUR MARKET
A. Describe your market.
B. Tell where you think your
particular industry is headed.
C. Define your target market.
D. List, with an analysis, all of
your competition.
Your Product or Service
A. Describe in detail your products
or services.
B. Compare your products or
services, your location, and your
ability to reach the market to those
of your competitors.

Manufacturing Process or Service
Details.
A. List the materials you will need.
B. Tell where you will buy your materials.
C. Describe how you are going to turn raw
material into a finished product.
D. Go into more detail about your service:
1. Tell what sets you apart from your
competitors.
2. Describe how you will ensure customer
loyalty

MARKETING STRATEGY
A. State your overall strategy for
reaching your goals.
B. Tell how you will price your
products or services.
C. Describe the methods you will
use to get your products into the
hands of your target market.

How Your Business will Operate
A. Indicate whether your business will be a
sole proprietorship, partnership, or a
Corporation.
B. Describe the main people in the business
and their duties.
C. State the kind of people you will need to
hire and how many of each job classification.
D. Tell where you will located and the kind of
building you will need.
E. Tell what your operating plans are for your
first 18 to 24 months in business.
CLASS EXERCISE
a) Mention any four incentives and
concessions provided by the
government of RWANDA to
encourage entrepreneurs.
(b) Give any four problems faced by
entrepreneurs in the Rwandan
economy, which the government
should address urgently.

Short Answer Type Questions
1. Explain the three roles played by
entrepreneurs.
2. State the importance of Entrepreneurship in
the economic development of a country.
3. What issues and problems do entrepreneurs
face in ‘Selection of Business’ and in ‘Choice
of form of business enterprise’?
4.Give a brief outline of entrepreneurial
practices in Rwanda.

Long Answer Type Questions
5. Explain the different type of
entrepreneurs.
6. Describe any five qualities that a
person should possess to be a
successful entrepreneur.
7. What are the important functions
performed by entrepreneurs, after
conception of a business idea?
8. A person having sufficient amount of
money can become a successful
entrepreneur. Do you agree with this
statement? Give reason in support of your
answer.
9. Uwase comes from a family of tailors
who have been working on a small scale
on their shop. She dreams of turning the
family vocation into a world-wide
business. To start and set up a business
enterprise in this field what are the factors
she should consider?
10. What attributes should an
entrepreneur possess for him to run a
successful business enterprise? Lists at
least 5 attributes and discuss them
11. Explain some of the challenges that
face an entrepreneur in his quest to
establish a successful business.
12. Examine three ways through which
the economy benefits from the growth of
small businesses
147
WHAT IS AN IDEA, OPPORTUNITY
AND INNOVATION?
An idea is a concept for a product or service that doesnít
exist or is not currently available in a market niche. It
may be a brand-new concept or an improvement of a
current product or service.
In contrast, an opportunity is an idea for a new product or

service with a market that is willing to pay for that
product or service so that it can form the basis of a
profitable business.
Innovation is the process of making changes to something

that adds value to customers.
2-3
WHAT IS AN OPPORTUNITY?
An opportunity has four essential qualities
2-4
THREE WAYS TO IDENTIFY AN OPPORTUNITY
2-5
General business ideas may be
categorized into:
Food and recreation
Construction
Manufacturing
Repairs and maintenance
Personalized services
Sources of Business information
 Newspapers-do you read newspapers?
 Industry information- industry set up?
 Internet- how often do you use internet to enhance your
knowledge?
 Market research- Do you understand the dynamics of
the market?
 Government-various policies (economic)?
 Government statistics( data-NISR?)
 Conference papers ( attending conferences, Seminars,
Workshops etc.)
 Consultation- need to consultant(expertise)
 Business journals
Qualities of a good business opportunity
1. Reduced risks
2. Short payback period
3. Use of technology
4. Realistic
5. Marketability
6. Ethical
7. Related to entrepreneurial interest
Qualities of a good business
opportunity (cont…)
8. Availability of information
9. Quality output
10. Reasonable demand/market
11. Attractive returns on investment
12. Available raw materials and other inputs
to production
13. Technical competence/skill
Guidelines for choosing a good
business opportunity
1. Making an honest evaluation of one's
self and abilities.
2. Having complete knowledge of the
product or service
3. Making a market evaluation of the
product or service to be offered.
5. Finding out how many
entrepreneurs have been in the
business successfully for a respectable
period of time.
6. Checking the training and
experience required to run the
business properly.
7. Financial strength and strong
credit behind the business opportunity
STEPS IN THE
ENTREPRENEURIAL PROCESS
1. Discovery
2. Concept Development
3. Resourcing
4. Actualization
5. Harvesting
Steps in the Entrepreneurial Process
1. Discovery: The stage in which the

entrepreneur generates ideas,
recognizes opportunities, and studies
the market
Idea
Innovation Opportunity
2. Concept Development:
 Develop a business plan: a
detailed proposal describing the
business idea
Objective
Executive summary
Mission Statement
3. Resourcing: The stage in which the

entrepreneur identifies and acquires
the financial, human, and capital
resources needed for the venture
startup, etc
Start-up resources
Steps in the Entrepreneurial
Process
4. Actualization: The stage in which
the entrepreneur operates the
business and utilizes resources to
achieve its goals/objectives.
Grand Opening
Day-to-Day Operations
Steps in the Entrepreneurial
Process
5. Harvesting: The stage in which the
entrepreneur decides on business’s
future growth/ development, or
demise
What is your 5-year or 10-year plan?
Consider adding locations or providing different

products/services
WHAT IS A BUSINESS PLAN
A business plan is a strategic document that
outlines a company's goals, strategies for
achieving them, and the time frame for their
achievement.
It covers aspects like market analysis,
financial projections, and organizational
structure, serving as a roadmap for business
growth and a tool to secure funding.

7 ELEMENTS OF A BUSINESS PLAN
1. Executive Summary
2. Business Description
3. Market Analysis
4. Organization and Management
5. Sales Strategies
6. Funding Requirements
7. Financial Projections

Components of a Business Plan
1)Executive Summary.
Your executive summary should appear first in your
business plan. ...
2) Company Description. ...
3) Market Analysis. ...
4) Competitive Analysis. ...
5) Description of Management and Organization.
6) Breakdown of Your Products and Services. ...
7) Marketing Plan. ...
8) Sales Strategy.

Cont-d
When putting your business plan together you should
ensure that you address these 6 key areas:
Your executive summary.
The vision statement and goal overview of
your business.
Target audience and competitor research.
Your products and services.
Business structure and operations.
Your financial plan.

Uses of a Business Plan to an Entrepreneur
If you are considering starting a business, a
Business Plan can help you:
 To check the viability of a business before
investing too much time or money in it.
It also provides insight on steps to be taken,
resources required for achieving your business goals
and
To have an insight on the timeline of anticipated
results.

Additional uses of a Business Plan
In summary, a well-written business plan
can serve three main purposes:
securing funding,
guiding operations,
and evaluating progress.
A business plan can make it easier to achieve
its objectives and attract investors or lenders.

SWOT ANALYSIS
 A SWOT analysis is a technique used to identify
strengths, weaknesses, opportunities, and threats for
your business or even a specific project.
 It's most widely used by organizations—from small
businesses and non-profits to large enterprises—but a
SWOT analysis can be used for personal purposes as
we
 SWOT (strengths, weaknesses, opportunities, and
threats) analysis is a method for identifying and
analyzing internal strengths and weaknesses and
external opportunities and threats that shape current
and future operations and help develop strategic goals.

Cont-d
The analysis typically involves creating a
matrix with the four categories:
What’s working for your business
(strengths)
What’s not working (weaknesses)
The external factors your business could
capitalize on (opportunities)
The external factors that could harm your
business (threats)

More on SWOT Analysis?
A SWOT analysis is a framework that
evaluates a business’ strengths, weaknesses,
opportunities, and threats.
The acronym "SWOT" stands for these four
factors. Performing a SWOT analysis can
help you make better business decisions.

SWOT analysis opportunities
examples are:
A growing demand for your product or
service.
A new market segment or niche(position).
A new technology that automates routine
tasks.
A new partnership or collaboration.

IMPORTANCE OF SWOT ANALYSIS
A SWOT analysis is a valuable framework that can
help you evaluate your business from different angles
and discover new ways to grow and improve.
By doing a SWOT analysis, you can:
Use your strengths to stand out from your
competitors
Address your weaknesses before they hurt you
Find and seize new opportunities
Prepare for and avoid potential threats
A SWOT analysis can help you make smarter

decisions, plan better, and reach your goals faster.

Cont-d

Advantages of SWOT Analysis
A SWOT analysis can support effective
risk management by identifying potential
vulnerabilities and threats that could
adversely impact the organization.
Effective risk management allows

companies to better navigate uncertain
market conditions, maintain operational
stability, and ensure long-term
sustainability.
Disadvantages of SWOT Analysis
Disadvantages include:
Some SWOT analysis users oversimplify the
amount of data used for decisions – it's easy to
use insufficient data.
The risk of capturing too much data may lead
to 'paralysis by analysis'.
The data used may be based on assumptions
that later prove to be unfounded.

CHAPTER FOUR
THE PHASES IN THE GROWTH OF A
FIRM
1. DEVELOPMENT STAGE
If you decide your business idea is
worth developing, the next step is to
put together a business plan.
A good business plan is one that sets
the course of a business lifespan.

CONT-D
At this stage, entrepreneurs should be
asking themselves the following
questions:
Does this concept/product/idea fill a need
in the market?
Will it be acceptable in the market?
How do I establish a business structure?
Will this idea yield me any profits?

USES OF A BUSINESS PLAN
1. Equity Funding:
A venture capitalist or an angel investor
will very rarely commit an investment to a
start-up without perusing its business plan.
The venture capitalist will primarily use the
business plan to gauge risks and forecast
growth prospects.

Bank Finance:
A banker obviously concentrates on the
ability of the business to repay the debt
and on the availability of collateral or
other securities. Banks look for at least
some specific issues to be addressed in the
business plan. For example, a bank needs
projected balance sheets and profit and
loss accounts for the first five years.

Alliances:
An entrepreneurial firm may need to form
alliances with other firms to reach new
markets, develop new products, or create
common facilities. Other firms may want
to know more about the business before
committing to any long-term arrangement.

Explain the Business:
A business plan helps in planning. While
writing the business plan, it is likely that
the entrepreneur was able to detect many
shortcomings in the original business idea
and these shortcomings could be
overcome by thinking through and
plugging the gaps.

Miscellaneous Uses:
Very often, an entrepreneur seeks moral
support from friends and family. A
business plan can be a good way of
presenting your business to your father,
mother, wife, and colleagues. By going
through it, they will have a better
appreciation of what you are setting out to
do.

2. START-UP STAGE
Business at this stage is extremely risky
and stressful, and many entrepreneurs
pull out.
The actual budget may even exceed what
was originally allocated.

Challenges at the start-up stage
include:
Raising money/seeking investments
Hiring staff
Managing expectations from sales and
cash reserves
Establishing customer base and market
presence
Managing accounts

3. GROWTH STAGE
Companies that reach the growth
stage have overcome the intense
start-up stage and are now generating
revenue and growing their client
base.
While profits have increased,
however, competition is catching up.
CONT-D
But if you really want to scale your
business, you should focus first on
fine-tuning your business model by
identifying ways to improve
operational efficiencies and improve
profitability before thinking of
expanding through inculcating
methodologies such as sales and
marketing models.
CONT-D
Entrepreneurs looking to grow
their businesses efficiently need
to start by analyzing their key
profit/business drivers, then
come up with strategies to grow
these profit drivers with the
least costs.

Challenges at the growth stage
include:
How to deal with increasing
customers and revenues
Streamlining(re-organize)
operations
How to deal with the market
competition
Increasing profit volume

4. EXPANSION STAGE
Characterized by a new season of
growth and increasing distribution
channels, businesses in the
expansion stage are faced with the
need to gain a bigger market
share as well as looking for ways
to stream in new revenues and
profit.
Cont-d
This stage calls for a
streamlined plan and research
before moving into new
markets.

Challenges at the expansion stage
include:
The increasing market
competition
Acquiring competitors
Addition of stock as well as
services
Expansion of the already existing
entity
5. MATURITY STAGE
When a company reaches the
maturity stage, the idea that
was just a thought is now
dominating and has stable
profits thanks to the strategies
you came up with during the
four previous stages.
Cont-d
This stage relies on a financial
source to help overcome the
challenges and keep the
business up on its booming
record.

Cont-d
Although maturity is the final
business growth stage, it isn’t
where you want your business
to stay.

Cont-d
Companies that languish in the maturity
stage might still be growing, but in a
sluggish manner. If this is the case, you may
need to go back to the drawing board to see
how to get your business back in the
expansion stage, or think of an exit strategy.
Here you need to go back to the drawing
board and think of an exit strategy.

Here’s what entrepreneurs whose
companies are in the maturity stage are
focused on:
How long the business can maintain
and manage a negative cash flow
Expanding the business
If necessary, finding and executing an
exit strategy

Cont-d
BUSINESSOPPORTUNITIES EXIST IN
THE FOLLOWING AREAS:

Cont-d
Motor Bike business
 This a business that many people, especially university graduate;
take for granted but has grown to become one of the most
profitable in Rwanda.

Cont-d
Executive salon
Women love
beauty, and beauty
comes with a cost.
That’s where a
salon comes in.

Cont-d
Real estate
Being a rapidly growing country, the demand for land,
houses and other facilities by individuals and businesses is
booming. And this makes the real estate sector one of the
most lucrative aspects of the Rwanda economy. If you
have little capital, you can start dealing in low cost land and
housing units.
And if your capital is on the high side, you can invest in
large expanses of land as well as housing estates.

Cont-d
Clothing and textiles
Rwanda’s clothing and textile
industry is another very lucrative
sector. The demand for Rwanda-
made clothing and textile products is
high not only in Rwanda, but also in
neighboring countries.
So, if you have what it takes to break
into the textile market, then you can
make lots of profit in the long term.

3. Food processing
Although there are quite a
Cont-d number of processed food
manufacturers in Rwanda,
the huge demands are still
yet to be met. So, there is
enough room for new
investors in the food
processing industry. You
have a wide range of
products to choose from;
fruits and vegetables,
juices, animal products,
and so on.
Cont-d
 Agriculture
With huge demand for agricultural products and adequate
workforce, new investors can easily start a business in the
agriculture sector. Depending on your capital, you can start
on a small scale or on a large scale. With a low capital, you
can cultivate selected crops on a small piece of land or rear
animals such as fishes or poultry. But if you have larger
capital, you can cultivate a wide range of crops and rear
animals as well.

E-commerce
Rwanda are now feeling more comfortable
with buying their needed products and
services online.
Even if you are on a low budget, you can start
with just one product category and expand
from there.

Cont-d
Technology products
Rwanda is one of Africa’s largest markets for
technology products such as PCs, smartphones, and
tablet computers.
Since these devices are in huge demand in Rwanda,
new investors can make lots of profit by selling the
latest products by global brands such as Apple,
Samsung, Sony, and so on.
In addition to selling technology products, you can
sell their accessories as well. And if you have the
expertise, you can render repair services, too.

Cont-d
Car Wash
A car wash in Kigali
will put you in the
map of rich under 40
and perhaps make you
one of the biggest
employers in Rwanda.

Cont-d
Tourism
Rwanda hosts thousands of visitors every year. These people
come from various parts of the world to behold Rwanda rich
cultural heritage, beautiful sceneries, lush landscapes, and so on.

Food Delivery business
Cont-d Starting a food delivery
business is a profitable
business venture, and can
yield a high profit for any
entrepreneur who is
serious about the
business. All you need is
to be creative as well as
learn how to market your
services.

Cont-d
Laundry services
This is one of the fastest growing
businesses in Rwanda. There are a lot of
people who are too overwhelmed by work
that they may not have the time to wash
their clothes. What you have to do is
to keep your rates low and service quality
high and thank me later.

Cont-d
Car and machinery spare parts
As our country’s economy grows, so does
our manufacturing industry. This has driven
a rapid increase for the demand of capital
goods such as machinery, lubricants, spare
parts and other mechanical goods and
accessories. Find a good supplier from
abroad, get a shop and you are good to go.

Cont-d
Photography and videography
All you need is a good camera, a studio
and the necessary skills, and you are good
to make money.

Cont-d
Apps development: Rwanda market
is making significant progress towards
tech product consumption and
government is very supportive about use
of technology.

INNOVATION and ENTREPRENEURSHIP
Innovation and how it leads to business
growth.

Cont-d
Nokia was founded by two
people Fredrik Idestam and
Leoo Mechelin.

Nokia’s evolution and downfall
Nokia was once a global mobile
telephony giant, which is
beyond dispute.

In 2003, Nokia’s market
share of the mobile phone
sales stood at an impressive 35
percent, dwarfing Motorola
which came in second with
14.5 percent market share.

Of course, Nokia did not release the
first ever mobile phone.
That honour went to Motorola in 1973
when, Martin Cooper, Motorola’s
senior researcher made the world’s first
mobile phone call using a devise that
weighed over one kilogramme.

Cont-d
When Nokia entered the
industry in the early 1990s with
the Mobira Cityman 900,
everything about mobile phones
changed.

continued
Nokia’s mobile phones weighed
less by comparison, were
affordable, and above all,
trustworthy.

Nokia phones
sold in
developed and
underdeveloped
markets with
Bagore Beza equal success.

And then came the fall…
It all started in 2007, a year
before Nokia posted a
record that still stands
today; a 38.6 percent global
market share of mobile
phone unit sales.
Many telecom experts and those in
tech Research and Development
(R&D) agree that the sudden fall of
Nokia all started when Apple’s ex
CEO, the late Steve Jobs walked on
to a stage in January 2007 and pulled
an iPhone out of his pocket, and
said: “Today, Apple is going to
reinvent the phone.”

After that day, a mobile phone had become a
smart-phone; it was no longer just a devise
used to make phone calls or send text
messages, but also a devise that provided the
breakthrough internet communications,
introducing us to an entirely new consumer
market of applications that we now use for
shopping, learning, communicating, gaming,
and so on.

The smart-phone also connected its
users to a new world of music,
perhaps spelling the end of an era for
CDs or the Sony walkman.

Cont-d
Similarly, the smart-phone
reinvented the way in which we
began taking photographs – we no
longer needed to carry a camera
devise with us.

Cont-d
In short, the smart-phone was the
beginning of the end for Nokia,
which had dominated the market
but crucially failed to innovate.

What Nokia failed to grasp, in my
opinion, was the need to innovate its
software front and become a leading
player. Even when Apple, Samsung, and
Microsoft innovated, Nokia failed to
keep up.

And since Apple’s entry and other
competitors, Nokia’s global mobile
phone unit sales market share which
stood at a dominant 38.6 percent in 2008,
plummeted to 9.9 percent just six years
later.
In 2014, Nokia’s handset division was

acquired by Microsoft.

What is innovation?
Innovation is the process and
outcome of creating something
new, which is also of value.
Cont-d
Innovation is the ability to apply
creative solutions to those
problems and opportunities in
order to enhance people’s lives or
to enrich society.

WHAT IS INNOVATION?
Today it is said to involve the
capacity to quickly adapt by
adopting new innovations
(products, processes, strategies,
organization, etc)
What is innovation?
Innovation comes about through
new combinations made by an
entrepreneur, resulting in
◦ a new product,
◦ a new process,
◦ opening of new market,
◦ new way of organizing the business
◦ new sources of supply
DRIVERS FOR INNOVATION
1. Financial pressures to reduce
costs, increase efficiency, do
more with less, etc
2. Increased competition
3. Shorter product life cycles
4. Demographic, social and market
changes
5. Rising customer expectations
regarding service and quality
6. Changing economy
7. Greater availability of potentially
useful technologies coupled with
a need to exceed the competition
in these technologies

Types of innovation
In business and economics, innovation is
often divided into five types:
1.Product innovation, which involves the
introduction of a new good or service that is
substantially improved. This might include
improvements in functional characteristics,
technical abilities, ease of use, or any other
dimension.
Cont-d
2. Process innovation involves the
implementation of a new or
significantly improved production
or delivery method.

Cont-d
3. Marketing innovation is
the development of new
marketing methods with
improvement in product
design or packaging, product
promotion or pricing.

Cont-d
4.Organizational innovation
involves the creation of new
organizations, business practices,
ways of running organizations or
new organizational behavior.

Cont-d
New Product
Development process

1. Idea Generation
Idea generation is the first
step of New Product
Development process. It is a
systematic search to find out
new ideas.

Cont-d
It comes from everywhere
and in any form. In the first
stage, new ideas are collected
from many sources, which
are:

IDEAS FOR NEW PRODUCT DEVELOPMENT
AND THEIR MAIN SOURCES
Internal Sources. Mostly, large companies have their
own formal research and development Department.
But normally any employee can come up with a good
idea.
Customers. A company should always listen to
customers’ questions, complaints and feedbacks that
help to generate new product ideas to satisfy customer
problems.
Competitors. To generate ideas companies can
conduct competitors swot analysis.
Distributors and suppliers. Also known as
collaborators are close to the market. They know the
consumer problems and new ideas and techniques to
address these problems.

2. IDEA SCREENING
The second step of new product
development is to find good ideas and
drop the poor one.
Following are some of the factors
influencing evaluating criteria to make
it succeed

Is the product useful to customer’s
needs?
Company objectives and resources
(people and skills)?
Company strengths and weaknesses?
Affordability, advertising and
distribution?
Current trends?
What is the expected return on
investment
CONCEPT DEVELOPMENT AND
TESTING
Concept development and testing is the
third step of new product development.
A product concept provides a detailed
description of the idea, keep in mind
your consumer perspective.

Cont-d
Those ideas qualify the screening stage
to become a concept and it must be
tested.
Companies cannot launch a new product
without properly testing the concept.

Cont-d
Concept testing helps companies to
investigate customers reactions before
introducing to the market feedback.

Marketing Strategy and Business
Analysis
In this step, the company develop
marketing and business strategy to
introduce a new product in the market
successfully.

Cont-d
The company engages different business
units–to perform marketing and financial
analysis–to meet the marketing
objectives.

Cont-d
The company initially explain target
market and product positioning. It
should also explain forecasted sale,
market share and profit both in short
and long-run.
The company also describes the
marketing strategy.

Cont-d
Business analysis involves a detailed
review of company cost, sales, profit
projections whether the company is
satisfied with objectives.

Product Development
When all the marketing and business
strategies are finalized. In this step, the
product concept is transformed into a
physical product.
This is when a prototype (sample) or a
limited production model will be created

In the development stage, a prototype is
designed that is functional and able to
satisfy the consumer wants.
The product undergoes serious tests to
make sure its effectiveness and
performance.

Test Marketing
After designing a successful prototype
(sample), it is introduced for further
research and feedback.
With the help of test marketing, the
company tries to understand the
consumers and dealers feedback and
reaction.

Cont-d
Important changes are made in the
actual product if needed. This step
completes the process and
empowers the company to
successfully introduce the new
product in the market.

COMMERCIALIZATION
Test marketing helps the company to
make decisions and launch the new
product in the market.
Commercialization is introducing the
new product in the target market. The
marketing strategies are applied.

Cont-d
Four decisions are important when launching a
new product.
1.When to introduce the product.
2.Where to launch a new product in single or
multiple location, national or international market.
3.To whom the company must decide distribution
and promotion (already decided in test marketing
phase).
4.How (action plan) a company should introduce
the new product in the target market.

LAUNCH
A detailed launch plan is needed for this
stage to run smoothly and to have maximum
impact.
It should include decisions surrounding
when and where to launch to target your
primary consumer group. Finally in order
to learn from any mistakes made, a review
of the market performance is needed to
access the success of the project.

CAUSES OF BUSINESS FAILURE
1. Poor location of the business enterprise
2. Poor managerial skills in managing the
business
3. Poor knowledge of business opportunities
4. Inadequate capital
5. High competition from large scale business
enterprise
6. Poor infrastructure
7. Inadequate equipment and facilities
8. Unexpected growth
Causes of Business Failure (Cont)
 Excessive standards of living using the business
funds
 Death or insanity of the owner (sole proprietorship)
 Disasters e.g. fire, strikes, drought, floods
 Theft from the business by employee
 Problems with payment of taxes, duties, and licenses
 Lack of adequate raw materials
 Lack of time to devote to the business by the owner
 Political interference in running of the business.
ROLE OF GOVERNMENT IN
PROMOTING ENTREPRENUERSHIP
1. Training
2. Policy Formulation
3. Supporting NGOs
4. Establishing Linkages/ Networks
5. Licensing
6. Ensuring political stability
7. Advisory services
8. Economic stability
9. Participation in business activities
10. Subsidies
11. create a conducive business environment
12. Open new markets (exports)
13. Attract foreign investment
Cont-d
QUIZ

QUESTION 1
How do you spell the Name of this
class?
A.Entrepreneurship
B.Entrepreneurship
C.Entrepreneurship
D.Entrepreneurship

QUESTION 2
Which of the following is not a
characteristic of a successful
entrepreneur?
A.Determination
B.Dependence
C.Creativity
D.Self-Confidence

QUESTION 3
Researchers have determined that
successful entrepreneurs
A.want to make their own decisions
B.do not always know what they want
C.like to have someone else make
decisions
D.do not need to set goals

QUESTION 4
Before starting a business, it is
important to identify the kinds
of entrepreneurial opportunities
that match your aptitudes and
interests.
A.True
B.False

QUESTION 5
Which of the following shows the process
of creating something new?
a) Business model
b) Modeling
c) Creative flexibility
d) Innovation

QUESTION 6
What is the process by which
individuals pursue opportunities
without regard to resources they
currently control?
a) Startup management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning

QUESTION 7
What is an entrepreneur?
A.Someone who invests time and money to
start a business.
B.Someone who makes a lot of money.
C.Someone who takes a risk to make a
profit.
D.Both A & C

QUESTION 8
The following are included in a business
plan
A. Financial information, production plans,
personnel policies.
B. Goals of the business and how they will be
achieved.
C. A step by step plan for the success of your
business.
D. All of the above.

QUESTION 9
A market survey is important because it
tells you:
A. How many & what types of people are
shopping at a store.
B. Tells you what the customer will buy.
C. Tells you how much the customer will pay
for the product.
D. All of the above.

QUESTION 10
Capital is:
A. Money available to invest.
B. Prohibitive cost of entry.
C. A guarantee that a
company will be successful.
D. A & B.

QUESTION 11
A proper location is critical to the
success of any small business
A.True
B.False

QUESTION 12
Penny just opened a small restaurant. While
she has had some customers in her restaurant,
it is not enough to pay employees and make a
profit. Most small businesses fail because of
the same reason. Which of the following is this
an example of?
A.Inadequate cash flow
B.Forecasting growth
C.Employee turnover
D.Hiring

QUESTION 13
Becky has created a new product for her
new business. Becky has launched this
product to help improve the existing hair
care products that are currently out. Which
of the following is Becky known as?
A.An entrepreneur
B.A scientist
C.An inventor
D.A business partner

QUESTION 14
Which of the following is a reason why a
person might prefer to purchase a
franchise rather than open a completely
new business?
a. higher failure rate
b. increased independence
c. ability to benefit from previous experience
d. reduced royalty fees

QUESTION 15
Which of the following is a purpose of a
business plan?
A.to attract financing.
B.to inform competitors of plans.
C.to discipline the entrepreneur to think of
all aspects of the proposed venture.
D.A & C.

QUESTION 16
An example of a good is ?
A. Haircutting
B. Accounting
C. Candy

QUESTION 17
Example of a service?
◦A. Plumbing
◦B. Candy
◦C. Car

QUESTION 18
People who work for
someone else
◦ A. Aptitude
◦ B. Employee
◦ C. Entrepreneurs
◦ D. Entrepreneurship

QUESTION 19
The ability to learn a particular
kind of job
◦ A. Aptitude
◦ B. Employee
◦ C. Entrepreneurship
◦ D. Entrepreneur

QUESTION 20
Which one is NOT a disadvantage of
Entrepreneurship?
◦ A. Risky
◦ B. Uncertain Income
◦ C. You are the boss
◦ D. Work long hours

QUESTION 21
Entrepreneurshiphas a minor
impact on economic growth
A.True
B.False

QUESTION 22
In an enterprise if Mr. Salim contributes
funds and Mr. Issam contributes his plan
to start a business, it is called as:
A.Sole proprietorship
B.Partnership
C.Corporation
D.Business

QUESTION 23
Which of the following can limit
the opportunity for
entrepreneurship?
A.New technological development
B.Economic expansion
C.Growth of cities
D.Fear of failure

QUESTION 24
Which of the following actions
by an entrepreneur is related to
creativity?
a. Development of a new product
b. Copy competitor
c. Decrease profit
d. Increase expenses

QUESTION 25
What is the most common reason given
for why people choose to become
entrepreneurs?
A.To make a lot of money.
B.To escape the long hours associated with
corporate jobs.
C.To be their own boss
D.To be able to retire early.

QUESTION 26
The entrepreneurial process is comprised of
each of the following steps except:
A.Discovery
B.Concept Development
C.Innovation
D.Actualization
E.Harvesting
QUESTION 27
Successful entrepreneurs enjoy their work and
often start their businesses so that they can
share their interests and enthusiasm with
others. In other words, successful
entrepreneurs have _______________ what
they do.
A.passion for
B.concerns about
C.apathy for
D.reservations about

QUESTION 28
Even though there is a significant chance that
his business will fail, Sidney intends to open
a sports memorabilia shop. What
entrepreneurial trait is Sidney exhibiting?
A.Organization
B.Open-mindedness
C.Creativity
D.Willingness to take risks

QUESTION 29
Before starting their business ventures, which
of the following would entrepreneurs
recognize first:
A.Regulations
B.Opportunity
C.Associations
D.Liability

QUESTION 30
Entrepreneurship is concerned with not
only having an idea and starting a
business, but which of these things?
A.Creating value
B.Solving problems
C.All answers are correct
D.Implementing creativity

Even Class PPT Entreprenuership 2024

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Even Class PPT Entreprenuership 2024

Uploaded by

Copyright:

Available Formats

ENTREPRENEURSHIP

LECTURER: KAMURU Charles

Tel: 0788532216, E-mail- ckamuru@gmail.com.

Labor for the future 1

Labor for the future 3

Labor for the future 5

Labor for the future 6

Labor for the future 7

Labor for the future 8

Labor for the future 9

Entrepreneurship is a French word meaning to

Labor for the future 10

Labor for the future 11

Labor for the future 12

Labor for the future 13

Labor for the future 14

Labor for the future 15

Labor for the future 16

Labor for the future 18

Labor for the future 19

Labor for the future 20

Labor for the future 21

Labor for the future 22

Labor for the future 23

Labor for the future 24

Labor for the future 25

Labor for the future 26

Labor for the future 27

Labor for the future 28

Labor for the future 29

Labor for the future 30

Labor for the future 31

Labor for the future 32

Labor for the future 33

Labor for the future 35

Labor for the future 36

Labor for the future 37

Labor for the future 38

Labor for the future 39

Labor for the future 40

Labor for the future 42

Labor for the future 43

Do you know that there are millions of

Labor for the future 46

Labor for the future 47

Labor for the future 49

Labor for the future 50

Labor for the future 51

Labor for the future 52

Labor for the future 53

Labor for the future 55

Labor for the future 62

Labor for the future 63

Labor for the future 65

Labor for the future 66

Labor for the future 69

Labor for the future 70

Labor for the future 71

Labor for the future 72

Labor for the future 73

Labor for the future 76

Labor for the future 77

Labor for the future 78