Module 1 VENTURE CAPITAL (FM ELEC3) ENTREPRENEURS’ FUNCTION:

Introduction: What is Entrepreneurship ∙ To supply the necessary capital

A Perspective on Entrepreneurship ∙ To organize the production by buying
and combining inputs like materials and
Some Thoughts of Business Plan labor
∙ To decide on the rate of output, in the light
A Perspective on Entrepreneurship of his expectation about demand
ENTREPRENEURSHIP an important component of ∙ To bear the risk inherent to the venture
a capitalist economy thrives in economic systems ∙ Products and services for customer’s and producers
that support innovation and hard work ∙ Employment
Entrepreneurs = success = nation. It refers to the ∙ Taxes
economic activity of a person who starts, manages, ∙ Demand and supplies’ products and services
and assumes the risk of a business enterprise.
∙ Training facilities for future entrepreneurs
Entrepreneurs = success = nation.
An Entrepreneur is someone who runs a business
Entrepreneural Task
as a sole owner with the aim of making profit even
though they encounter a lot of challenges and is
the person who undertakes entrepreneurial
activities
Entrepreneurship and Economic
Development

Entrepreneur Focus:

Activity : Innovation
⮚ Product
Name
Description of the Product
Tagline
Short Commercial
Logo
Different theories of entrepreneurship
1. Economic theories of entrepreneurship
The economic theory is among the main
economic theories of entrepreneurship.
2. Sociological theories of entrepreneurship
This is also among the contemporary
theories of entrepreneurship. It argues that
the success of an entrepreneur is affected by
their social culture.
3. Entrepreneurship Innovation theory
This is also the top theories of
entrepreneurship in Kenya.
An entrepreneur does not merely conduct
business to better their lives alone.
5. Theory of high achievement/Theory of
achievement motivation That people who aim
to become entrepreneurs must have a need for
achievement, a need for affiliation and a need
for power.
6. Resource based theories
According to these theories,
entrepreneurs require resources to
go about their businesses.
7. Opportunity based theory
With the aim of being successful,
entrepreneurs grab any opportunity
they come across. These opportunities
are made available through the changes
in technology, society or culture.
Notably, as these changes occur,
consumers change their preferences. An
entrepreneur must therefore take those
changes as opportunities of succeeding
in their businesses. Also, technology sets
a basis upon which innovation is created
and facilitated. Therefore, this theory
suggests that entrepreneurs are always
on the lookout for opportunities that will
enable them increase the growth of their
ventures.
8. Status
withdrawal theory
This theory argues that entrepreneurial
aggressiveness can be created when people of a
certain class lose the prestige they initially had or
when they belong to a minority group

Types of Entrepreneurs
1. Small business entrepreneurship
2. Large company entrepreneurship
3. Scalable startup entrepreneurship
4. Social entrepreneurship
5. Innovative entrepreneurship
6. Hustler entrepreneurship
7. Imitator entrepreneurship
8. Researcher entrepreneurship
9. Buyer entrepreneurship
 because without the right team, none of the other
parts really matters.

The Opportunity

When it comes to the opportunity itself, a good

business plan begins by focusing on two
questions:
1. Is the total market for the venture's product or
Some Thoughts of Business Plan
service large, rapidly growing, or both?
This note is about entrepreneurial ventures and the 2. Is the industry now, or can it become,
role of business plans. The rest of this note develops structurally attractive?
a conceptual framework for understanding
entrepreneurial venture creation and
management. Rules for Writing A Business Plan:
1. Keep it short
2. Know your audience
Four Dynamic Components of any
Entrepreneurial Process or Venture 1.
People Difference between Feasibility Study and
Business Plan
2. Opportunity
1. Emphasis
3. External Context
2. Target Audience
4. Deal
3. Sections
People
4. Versions
Those individuals or groups who perform services or
5. Importance
provide resources for the venture, whether or not
they are directly employed by the venture.
Business Plan: new company, new product.
Opportunity Generally project 3-5 years; show the business
Any activity requiring the investment of scarce goals the route a company intends to take grow
resources in hopes of future return revenues; essential roadmap for business to
succeed.
External Context
Business Plan Format
Those factors that affect outcome of the opportunity
but that are generally outside the direct control of I . Cover page with tittle and name of Proponents
management II .Table of Contents
III. Executive Summary
IV. Company Description
Deal
V. Market Analysis / Opportunity /
The complete set of implicit and explicit contractual
Industry and Market Description VI.
relationships between the entity and all resource
Market and Sales Strategy
providers.
VII. Business Model Explanation
(Product or Services )
Fit
VIII. Management & Organisation
The fundamental insight gained from studying
IX. Marketing Plan
hundreds of successful and unsuccessful ventures is
X. Operational Plan
the concept of integration which is defined as the
XI. Financial Plan
degree to which people, the opportunity, the deal,
XII. Appendix
and the context together influence the potential for
success.
Dynamic Fit Management The appendix includes additional documents that
The people the reader of the business plan may want to refer
to.
Read the resume section first because the people
part of the new venture is the most important, but
Incidental or supporting materials that are relevant to the
findings of the study. Example:
- Credit history
- Resume of key managers
- Product pictures
- Letter of Preference
- Details of market studies
- Licenses, permits or patens
- Legal documents
- Leases, Building permits, contracts
- List of consultants, etc.

XIII. Bibliography
XIV. Curriculum Vitae
All materials used in the report,
whether cited in the text or not.