UNIVERSITY OF NAIROBI

SCHOOL OF BUSINESS

DBA 403
ENTREPRENUERSHIP
CHRISTINA NAMALOMBA D33/45894 /2017
SANDRA ANZIGALE KAGEHA D33/45834 /2017
LISA WANJIRU D33/33110 /2014
KENNEDY MUSUMBI MUTUKU D33/40195/2016
TREVOR MWANGICOURSE D33/40134/2016
LECTURER: PROF. BITANGE NDEMO
 TABLE OF CONTENTS
Introduction......................................................................................................................................3

Entrepreneurship defined.................................................................................................................3

The Evaluation process....................................................................................................................4

Financing the venture......................................................................................................................4

Negotiation......................................................................................................................................6

Negotiating with your users/customers...........................................................................................6

Negotiation with investors...............................................................................................................6

Negotiating with the team................................................................................................................7

Negotiating with co-founder/s.........................................................................................................7

Negotiating with yourself................................................................................................................7

Managing a growing business.........................................................................................................7

Strategies used by the copy center owner to manage the growth in his business............................7

Contribution to community..............................................................................................................8

Conclusion.......................................................................................................................................9

References......................................................................................................................................10

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Introduction
The term paper is based on a small based enterprise ,known as the Copy center ,which is located
in the University of Nairobi, school of business lower Kabete campus on Lower Kabete
Road.The owner of the enterprise is a young man named Roy Kirema ,an alumni of University of
Nairobi ,School of Economics ,where he obtained his Bachelors in Economics .The copy center
is a popular spot which provides students with printing and photocopying services at very
affordable rates .(Kirema,R,Interview ,July 29,2019)

Entrepreneurship defined
Scholars Robert Hisrich, Michael Peters and Shepherd Dean described entrepreneurship as the
process of creating something new by devoting the necessary time and effort, assuming the
accompanying financial psychic, and social risks and receiving the resulting rewards of monetary
and personal satisfaction and independence.

How the entrepreneurial opportunity was identified

Sir Roy Kirema had come to a realization that he needed extra cash to cater for his day to day
expenses as a student. He noticed that students needed to print their documents, and obtain past
papers .He pondered the idea, and analyzed how he could meet the needs of his fellow students.
Thus in 2015 he got permission from the University of Nairobi, lower Kabete to begin “the copy
center” also informally known as Roy’s printing place.

Opportunity identification is a very challenging task. Opportunities do not often randomly

appear, but usually due to the alertness of the entrepreneur he may be able to spot them, or, the
entrepreneur develops procedures that highlight possible opportunities when they arise. Like Roy
most entrepreneurs do not usually have documented procedures to identify said opportunities.

Once identified, opportunities must be carefully scrutinized and evaluated .The evaluation
process analyzes whether the service or product will compare whether the return on
investment will exceed resources required.Hisrich et al. (2007, p.39)

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The Evaluation process
1. Length of opportunity

How wide the window of opportunity is.The perceived risks and rewards that the opportunity
brings. The resources that would be required.

2. The market size

How big the target market is .How big the customer population is .So that if an entrepreneur
decides to venture they are aware of the margin

3. Personal skills and goals of entrepreneur

This includes the basic skills that the entrepreneur possesses ,the educational background
,communication skills ,intrapersonal skills.These skills ought to match the skills required for the
venture to succeed. The goals of the entrepreneur could be what drives and motivates the
individual to remain in that venture like for this instance ,what motivates our entrepreneur Roy
was serving the community while getting something in return ,such as growth as an individual in
all avenues of his life ,as compared to the growth he would have obtained under formal
employment.Moreover ,the zeal of being his own boss ,moves him up from his bed every
morning .and keeps him going through out the day.

Financing the venture

The copy center was financed through personal savings and money from relatives .There are to
types of financing debt financing and equity financing .Debt financing is a method involving an
interest bearing instrument (loan), the payment of which is only indirectly related to the sales and
profits of the venture .There is equity financing which does not require collateral and offers
investors some form of ownership position in the venture.
A small business needs money in order to operate. It is always a desirable situation for any small
business that the company revenue will be enough to sustain the organization, but that is not
always the case. The proactive small business owner is constantly searching out for sources of
finance for his small business to be able to fund new projects and ongoing operations.
Finding the money to start a small businesses is usually one of the first problems that
entrepreneurs face. For most people, this process can be hard and very frustrating. For the

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venture that we set out to explore, the entrepreneur used debt financing - Obtaining borrowed
funds for the company. The asset used as collateral was the machinery he uses in his shop.
Factors affecting type of financing decision were:
 Availability of funds.
 All financing requires some level of equity; and this equity was determined by the size of
the venture
 The business is run by internally generated funds. Sources of this funds are for example;
 profits
 reducing working capital
 accounts receivable
 Extended payment terms from suppliers.
Instead of borrowing from investors and bankers, the business had the option of using its own
money to finance its operations. This approach did save the business money on interest payments
and free the business from being accountable to outside parties. However, it can limit expansion
options if the entrepreneur doesn't have enough cash available to proceed with plans concerning
the business.
These are some of the approaches the entrepreneur took on raising money for the business.
i. Friends and family
If your business is well thought out and has a proper business plan, your family members
together with your friends are the closest people to approach when it comes to raising capital for
your business. Your communication skills should save you at this point. The good thing with
cash from friends as well as family members is that it comes with very low-interest rates or none
at all. It makes it cheap for you when running the business since you would not be required to
pay interest rates on loans.
ii. Selling of assets

When starting off a business venture, it is good to consider and use what you have to get what
you want. Any assets that can easily be converted into cash were used. They were sold and the
cash to be used to kick-start the Doing so is cheaper than going out for a loan which will
automatically come with high interest rates.

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Negotiation
Being a negotiator is a mindset. It is composed of being aware of the art of negotiation, having
the tools and lots of practicing. 

The different types of negotiations entrepreneurs such as Roy faces are;

Negotiating with your users/customers

One of the most important skills of an entrepreneur is the ability and agility to listen to your
users. Every entrepreneur loves talking to users who appreciate his or her product, When
designing your product, think about it as a negotiation with your users. Think about offers and
features which will meet their needs and interests, but also about your interests as a business.

In order to know what will make your users happy and satisfied, you need to do what every great
negotiator does — prepare. You need to research about who your potential customers are and why
they would use your product. You will also have to understand the market and your competitors.
You have to get to know your counterparts. What they like, their habits, their problems.

Negotiation with investors

When you raise capital for your start up, you meet investors of all types: angel investors and
venture capital investors. Preparation is required in order to give a good pitch, this in turn
willingly lead to funding of your business hence create a long term relationship between you and
the investor.

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Negotiating with the team

The core of negotiation is about building trust. Trust is at the core of building a great team. When
you recruit your team, you want to surround yourself with the best people out there. You want to
lead your team with the same goals and objectives. In order to achieve this you must build trust.

Negotiating with co-founder/s

Your relationship with your co-founders is fundamental to the success of your startup company.
Starting a company and developing a new product usually requires more than one entrepreneur.
Having one or more co-founders brings diversity and innovative thinking to the company.

Negotiating with yourself

For a business to succeed, it needs full commitment from the entrepreneur. This means that he
should forego any other commitment and put all his efforts on the business.

Managing a growing business

Regardless of how beneficial or detrimental acceleration has been you have to be able to sustain
challenging changes in a growing enterprise.

Strategies used by the copy center owner to manage the growth in his business

1. Keep customers satisfied.

 No matter at what stage a business is in they cannot stop listening to their
customers. Roy ensures his customers have up to date notes and update question
papers suitable for their thorough revision .As well as reacting timely to their
complaints and suggestions
2. Having the right team

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  Having team members who are smarter than you is essential for a fast growing
enterprise. In our case Roy has a partner, who assist him, and they work side by
side to steer the enterprise to success.
3. Sustain competitive advantage
 Competitive advantage are conditions that allows a company or country to
produce a good or service of equal value at a lower price or a more desirable
fashion.
 Roy’s shop is centrally located in the school premises.it is situated near
classrooms, making it easily accessible unlike his competitors who are located
further.
4. Public interaction
 Business owners should know that as soon as they open the doors to
customers they are subject to changes in every fabric of their business.
 Roy openly interacts with his customers, which allows him to establish
good solid relationships with them.
5. Expand his target market to neighboring Kenya School Government and to the
community at large.

Contribution to community

• Job Creation Copy center has enabled to create employment opportunities by employing one
staff who is able to carry out day to day activities of the business

• Improves standards of living it has enabled to improve standards of living to its beneficiaries

• Increase revenue to the school the school has been enabled to earn revenue since the business
pays rent to the school

• Growth of other businesses/Economic growth Copy center has brought about growth of other
businesses such an opening of a small shop

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• It has created Social Change It offers unique services hence this reducing dependency resulting
to improved quality of life and improved moral

• Personal Growth The business has enabled him to learn and gain more experience on how to
run a business

Conclusion

Having an entrepreneurial idea is not enough to guarantee its success. Turning that idea into a
successful venture is not easy. One has to continuously evaluate it, put in a lot of sacrifice in
order to see desired results.

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References

Hisrich, D.R., Peters,P.M.,Shepherd,A.D., (2007).Entrepreneurship. McGraw Hill companies.

Fisher, R. and Ury, W. (1991). Getting to Yes: Negotiating Agreement Without

Giving In: Penguin Books, 2nd edition.

Putnam, L.L. and Roloff, M..E. (1992). Communication and Negotiation. Newburg Park,

California: Sage Publications, Inc.

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