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Enterpreneurship Lecture Note
Enterpreneurship Lecture Note
Enterpreneurship Lecture Note
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All content following this page was uploaded by Abdulnasir Abdulmelike Mohammed on 04 July 2018.
By:
Abdulnasir A.
2018
Contents
Definition
□ Entrepreneur/ship, just like management, has no single
definition.
An entrepreneur is a person who is action oriented, highly
motivated, takes risks to achieve goals
An entrepreneur is a person who establishes his own
business with the intention of making profits
An entrepreneur is a person who only provides capital
without taking active part in the leading role in an enterprise.
An entrepreneur is a one who innovates, raise money,
assemble input, choose managers and set the organization
growing.
Continued…
□ During the ancient period the word entrepreneur was used to refer
to a person managing large commercial projects through the
resources provided to him.
□ In the 17th Century a person who has signed a contractual
agreement with the government to provide stipulated products or
to perform service was considered as entrepreneur.
□ In the 18th Century the first theory of entrepreneur has been
developed by Richard Cantillon. He said that an entrepreneur is a
risk taker. If we consider the merchant, farmers and /or the
professionals they all operate at risk. For example, the merchants
buy products at a known price and sell it at unknown price and this
shows that they are operating at risk.
Continued…
□ Entrepreneurs
□ Invention
□ Innovation
Areas of Innovation
□ New product
□ New Services
□ New Production Techniques
□ New Way of Delivering the Product or Service to the
Customer
□ New Operating Practices
□ New Means of Informing the Customer about the Product
□ New Means of Managing Relationship within the
Organization
□ New Ways of Managing Relationships between
Organizations
Chapter Two : Small Businesses
□ Management incompetence
□ Poor financial control
□ Lack of adequate capital
□ Over investment in fixed asset
□ Failure to plan current as well as future operation
□ Failure to adopt proper inventory control system
□ Improper Attitude (The entrepreneur may not respect time,
employees and may have lazy lifestyle and dictatorial style of work)
□ Inadequate marketing plan
□ Incorrect market identification
□ Poor distribution channel
□ Weak marketing communication or promotion
How to avoid the pitfalls/difficulties of
a small business
Strength Opportunity
Weakness Threat
Project classifications
□ Techno-economic project
Factor intensity oriented classification (labor vs capital
intensive)
Causation oriented classification
Magnitude oriented classification
□ Financial institution classification
New project
Expansion project
Modernization project
Diversification project
Characteristics of small scale
industry
□ Closely held
□ Personal character
□ Limited scale of operation
□ Indigenous resources
□ Labor intensive
□ Local area of operation
□ Simple organization
Chapter Three: Business planning
□ Executive summary
□ Company History
□ Business Profile
□ Business Strategy
□ Description of the firm’s product
□ marketing strategy
□ Competitors Analysis
□ Officers’ owners’ Resumes
□ Plan of operation
□ Financial data
□ Loan Proposal
Common Mistakes in Business
Plan Preparation
□ Single-Purpose use
□ One- person commitment
□ Being neglect
□ Unworkable document
□ Unbalanced application
□ Disillusionment
□ Too- action Oriented
□ No Performance Standard
□ Poor progress Control
□ Early consumption
Chapter Five: Marketing and
New Venture Development
□ Market Research
□ Sales analysis/Research
□ Consumer Research
□ Advertising Research
The Marketing Research Process
□ Problem definition
□ Examination of primary & secondary data
□ Analysis of data
□ Making Recommendation
□ Implementation of findings
Marketing Intelligence
Equity Financing
□Stock (Preferred & Common stock)
□Retained earnings
□Sale of assets
Venture capital