Entrepreneurship

Lecture Note On: Entrepreneurship & Business Development
Chapter 1
The Nature of Entrepreneurship
1. Definition and philosophy of Entrepreneurship Vs Entrepreneurs

The word ‘entrepreneur’ is widely used, both in everyday conversation and as a technical term in
management and economics. Different writers have forwarded many definitions of entrepreneurship
emphasizing its different aspects. No consensus has been reached as the precise definition of
entrepreneurship. However, the following definitions are taken for our purpose.
Entrepreneurship is the process of identifying opportunities in the market place, arranging resources
required to exploit the opportunities for long term gains. It is creating wealth by bringing together
resources in new ways to start and operate an enterprise. Entrepreneurship is the process of creating and
building something of value from practically nothing.
The relationship among an entrepreneur, entrepreneurship and enterprise
The term entrepreneur is used to describe men and women who establish and manage their own
business. The process involved in creating and starting an enterprise is called entrepreneurship.
Entrepreneurship is a process and an entrepreneur is a person.
An enterprise is the business organization that is formed and which provides goods and services,
creates jobs, contributes to national income, exports and overall economic development.
Entrepreneur vs. Intrapreneur
Intrapreneur: It is the practice of beginning and developing new business ventures within the structure
of an existing organization. Entrepreneur strives for creating something new of values, organizes
resources, assumes risks and owns the rewards while an intrapreneur is an employee who commits time
& energy to create innovative new products/ services by using company resources, without much
personal investment, risks & without owning the rewards. Operations and decisions of entrepreneur is
independent as he is not answerable directly to someone whereas intrapreneur is bounded with his line
of authority and is dependent on the organizational systems. Capital investment in the new venture is
made by entrepreneur while intrapreneur utilizes financial resources of organization.
Entrepreneur Vs. Manager
Manager is a person in an organization, who gets things done by other, diverts & control so that they
perform in concerted effects. Innovation, organizing, motivating, risk taking are functions of
entrepreneur whereas managers primary functions include planning, organizing staffing directing &
controlling.
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Department of Management Page 1
As manager is a salaried employee, he does not assume much risk of business while entrepreneur taken
financial & social risk. Strategic view of entrepreneur is driven by perception of opportunity where as
manager is driven by organizational resources currently available & controlled.
1.3. Historical Origin of Entrepreneurship
The word entrepreneur comes from a French word ‘entreprendre’, which means’’ to undertake.”
Through the ages, the concept of entrepreneurship has shown significant development and change in
terms of scope. The concept also varies from period to period and economy to economy.
A. Earliest Period: In the early period an ‘entrepreneur’ was a merchant adventurer who signs a
contract with a money person (a form of venture capitalist) to sell his goods. The merchant-
adventurer traveled great distances to find a market for the goods and played the active role in selling
the goods, bearing all the physical and emotional risks. Finally, when the merchant-adventurer sold
the goods and completed the journey, the profits were divided with the capitalist in 1 to 3 ratio, the
capitalist taking up to 75 percent.
B. Middle Ages: During the middle ages, the term entrepreneur was given to both an actor and a person
who run large production projects. This individual did not take any risk but simply administered the
project using the resources provided by the government of the country. The typical entrepreneur was
the cleric who was responsible for the construction of great building such as castles and cathedrals.
Also in the early 1600s, the Frenchmen who organized and led military expeditions were called
“entrepreneurs.”
C. 17th and 18th Century: It was during the 17th century that the view of an entrepreneur as a risk taker
was developed. The typical entrepreneur entered into a contract with the government to perform a
service or to supply specific products at a fixed contract price bearing the risk of loss in the case of
price escalations. In the 18th century, the industrialization taking place all over the world led to the
clear separation of the entrepreneur from the capital provider. The capital provider, the forerunner of
the present-day venture capitalist, was a professional money manager who made risk investments to
get a high rate of return. He financed the projects of the entrepreneur and shared the profits that
accrued from the entrepreneur’s project.
D. 19th and 20th Century: In the late 19th and early 20th century, entrepreneurs were often viewed as
managers and from an economic point of view. In the mid-1900s the connection of innovation with
entrepreneur emerged.
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Characteristics of Entrepreneurs
A common stereotype of the entrepreneur emphasizes such characteristics as a high need for
achievement, willingness to take moderate risks, strong self-confidence and innovation.
1.4. Type of Entrepreneurs
The field of small business encompasses a great variety of entrepreneurs.
 Pure Entrepreneur: He is motivated by psychological and economic rewards. He starts activities
for his personal satisfaction, ego or status.
 Artisan Entrepreneur: is a person who starts a business with primarily technical skills and little
business knowledge. Artisan entrepreneur is limited to technical training.
 Induced Entrepreneur: Such entrepreneur is induced to take up an entrepreneurial task due to the
policy measures of the government.
 Copreneurs: It is related to the married couples working together in a business. When a married
couple shares ownership, commitment and responsibility for a business, they are called ‘copreneurs’.
 Fabian: Fabian entrepreneurs are lazy and shy. They lack the will to adopt new methods of
production.
 Drone: Drone entrepreneur is one who follows the traditional methods of production.
 Imitative Entrepreneurs: Imitative entrepreneurship is characterized by readiness to adopt
successful innovations by innovating entrepreneurs. They first imitate techniques and technology
innovated by others.
 Forced Entrepreneurs: Sometimes, circumstances made many persons to become entrepreneurs.
They do not have any plan, forward looking and business aptitude. To mitigate the situational
problem, they are forced to plunge into entrepreneurial venture. most of may not be successful in this
category due to lack of training and exposure.
Motivation for Starting a Business
The reason for small firm formation can be divided between “pull” and “push” influences.
1. “Pull” Influences
Some individuals are attracted towards small business ownership by positive motives such as a specific
idea which they are convinced will work. “Pull” motives include: Desire for Independence, Desire to
Exploit an Opportunity and Turning a Hobby or Previous Work Experience into a Business
2. ‘Push’ Influences
Many people are pushed into founding a new enterprise by a variety of factors including:
Unemployment (or threat of unemployment) and Disagreement with Previous Employer.
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1.5. Role of Entrepreneurs in Economic Development

Entrepreneurial development is the most important input in the economic development of any country.
The objectives of industrial development, balanced regional growth, and generation of employment
opportunities are achievable through entrepreneurial development. Entrepreneurs are at the core of
industrial development which results in greater employment opportunities to the unemployed youth,
increase in per capita income, higher standard of living and increased revenue to the government in the
form of income, sales tax, export duties, import duties etc.
1.6. Entrepreneurial Competence and Environment
1.6.1. Entrepreneurial Skills
A skill is simply knowledge which is demonstrated by action. It is an ability to perform in a certain way.
An entrepreneur is someone who has a good business idea and can turn that idea into reality. Turning an
idea into reality calls upon two sorts of skills, these are:
1. General management skills 2. People management skills
I) General Management Skills: These are skills required to organize the physical and financial
resources needed to run the venture. Some of general management business skills are: strategy,
planning, and marketing, financial, project management and time management skills.
II) People Management Skills: Businesses are made by people. A business can only be successful if
the peoples who make it up are properly directed and are committed to make an effort on its behalf.
An entrepreneurial venture also needs the support of people from outside the organization such as
customers, suppliers and investors. To be effective, an entrepreneur needs to demonstrate
communication, leadership, motivation, delegation and negotiation skills.
1.6.2. Entrepreneurship and Environment
Business and its environment interact with each other. A study of business environment provides
information about environment which is essential for successful operation of business firms. Thus, the
entrepreneur should continuously study the nature of environment and its influence on business.
Business environment may be classified into two broad categories; namely external and internal
environment. External Environment is the environment which is external to the business. The following
are the components of external environment: Economic Environment, Legal Environment, Political
Environment, Socio-Cultural Environment and Demographic Environment.
Internal environment is the environment which is under the control of a given organization. Following
are the components of internal environment of a business: Production/Operation (availability of various
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machineries, equipment, tools and techniques that would be required for production/operation), Finance
and Human Resource.
1.7. Entrepreneurship, Creativity and Innovation
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and
opportunities. Innovation is the ability to apply creative solutions to those problems and opportunities in
order to enhance people’s lives or to enrich society. In other words, creativity is thinking new things,
and innovation is doing new things. Invention is the creation of something that has never been made
before and is recognized as the product of some unique insight.
Entrepreneurship = creativity + innovation
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Chapter 2: Business Planning

2.1. Opportunity Identification and Evaluation
The initial stage in the entrepreneurial process is the identification and refinement of a viable economic
opportunity that exists in the market. The opportunity identification and evaluation stage can be divided
into five main steps namely; getting the idea/scanning the environment, identifying the opportunity,
developing the opportunity, evaluating the opportunity and evaluating the team.
1) Scanning the Environment/ Getting the Idea
Idea is a thought or suggestion about a possible course of action. Whereas, opportunity is a favorable
time or set of circumstances for doing something. A business opportunity is a gap left in a market by
those who currently serve it, giving a chance to others to add unrealized value by performing differently
from and better than competitors in order to create new possibilities.
2) Opportunity identification is ability to see, to discover and exploit opportunities that others
miss. It is the process of seeking out better ways of competing. In developing countries,
problems may be changed to business opportunities.
3) Opportunity Development
Opportunity development is the process of combining resources to pursue a market opportunity
identified. This involves systematic research to refine the idea to the most promising high potential
opportunity that can be transformed into marketable items.
4) Opportunity Evaluation
It allows the entrepreneur to assess whether the specific product or service has the returns needed for the
resources required. This evaluation process involves looking at the creation and length of the
opportunity, its real and perceived value, its risks and returns, its fit with the personal skills and goals of
the entrepreneur, and its differential advantage in its competitive environment.
5) Assessment of the Entrepreneurial Team

Regardless of how right the opportunity may seem to be, it will not make a successful business unless it
is developed by a team with strong skills. Once the opportunity has been evaluated, the next step is to
ask pertinent questions about the people who would run the company.
2.2. Business Idea Development
A business idea is a short and precise description of the basic operation of an intended business. There
are three types of business ideas. They are:
1. Old Idea – Here an individual copy an existing business idea from someone.
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2. Old Idea with Modification – In this case the person accepts an old idea from someone and then
modifies it in some way to fit a potential customer’s demand.
3. A New Idea – This one involves the invention of something new for the first time
2.3. Business Idea Identification
Your business idea will tell you:
F Which need will your business fulfill for the customers and what kind of customers will you
attract?
F What good or service will your business sell?
F Who will your business sell to?
F How is your business going to sell its goods or services?
F How much will your business depend upon and impact the environment?
2.4. Methods for Generating Business Ideas
Every business idea should be based on knowledge of the market and its needs. The market refers to
people who might want to buy a good or service; i.e. the customers. Below are different approaches to
generating business ideas.
1. Learn from successful business owners
You can learn a lot from people in your area who have already gone through the process of establishing
a business.
2. Draw from Experience
2.1 Your own Experience
Look at the list of your interests, your experiences and your networks. Are there any possible business
ideas that you can derive from your own past experience?
2.2 Other People’s Experience
The people around you are potential customers. Listen carefully to what these people say about their
shopping experience. Ask your family and friends about the things they would like to find that are not
locally available. Expand your social knowledge by talking to people from different age groups, social
classes, etc.
3. Survey Your Local Business Area
Another way of discovering business ideas is to look around your local community. Find out what type
of businesses are already operating in your area and see if you can identify any gaps in the market. If
you live in a village or small town, you may be able to identify all the fields of business in the whole
town.
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4. Scanning Your Environment

You can use your creativity to find more business ideas in your area. It may be useful to think about
business ideas by considering all the resources and institutions in your area. For example think about:
F Natural resources,
F Characteristics and skills of people in the local community,
F Import substitution,
F Waste products,
F Publications,
F Trade fairs and exhibitions,
5. Brainstorming
Brainstorming means opening up your mind and thinking about many different ideas. You start with a
word or a topic and then write down everything that comes to mind relating to that subject. You
continue writing for as long as possible, putting down things that you think of, even if they seem
irrelevant or odd. Good ideas can come from concepts that initially seem strange.
Brainstorming works best in a group. Get your family, friends or classmate together and ask them to
help by writing down ideas they have when they hear the word or subject matter.
2.5. Business Idea Screening
Idea screening is the process to spot good ideas and eliminate poor one.
2.6. Concept of Business Plan
Planning is the first and the most crucial step for starting a business. A carefully designed business plan can
convert a simple idea into a successful business venture. A business plan is a road map or blueprint for
starting and running a business. A business plan is a written summary of an entrepreneur proposed
business venture, its operational, financial details (usually one to three years), marketing opportunities
and strategy, and its managers’ skills and abilities.
Essentials of a Sound Business Plan

To make persuasive the business plan must consider the following points:
 Comprehensive: the business plan has to fully and completely treat all the major issues facing the
new venture.
 Communicative: the business plan is a document for communicating to various audiences the
business’s concept and potential.
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 Guidance: the business plan can be referred repeatedly to guide decisions of the firm’s managers
and employees.
 Flexible: the process of putting together a business plan, consulting it frequently, and reviewing and
revising it periodically can improve the venture’s performance.
2.7 Developing a Business Plan
Hiring someone to write the plan is unacceptable. Entrepreneurs should undertake personally. Outside
consultants, accountants and lawyers should be tapped for their advice and expertise.
Essential Components (Elements) of Business Plan
The following are the major points to be covered while preparing the business plan.
I) Cover Sheet: Cover sheet is like the cover page of the book. It mentions the name of the project,
address of the headquarters (if any) and name and address of the promoters.
II) Executive Summary: Executive summary is the first impression about the business proposal. It
provides a general overview of the plan’s main points. It is a condensed abstract of a business
plan used to spark the reader’s interest in the business and to highlight crucial information. It
gives a one- to two-page overview of your entire plan. Prepare it last, after the business plan has
been written. Make it professional, complete, and concise.
III) The Business: This will give details about the business concept. It will discuss the objective of
the business, a brief history about the past performance of the company (if it is an old company),
what would be the form of ownership (whether it would be a single proprietor, partnership,
cooperative society or a company under company law). It would also label the address of the
proposed headquarters.
IV) Funding Requirement: Since the investors and financial institutions are one of the key bodies
examining the business plan report and it is one of the primary objectives of preparing the
business plan report, a careful, well-planned funding requirement should be documented. It is
also necessary to project how these requirements would be fulfilled. Debt equity ratio should be
prepared, which can give an indication about how much finance would the company require and
how it would like to fund the project.
V)The Product or Services: A brief description of product/services is given in this subsection. It
includes the key features of the product, the product range that would be provided to the
customers and the advantages that the product holds over and above the similar products/
substitute products available in the market. It also gives details about the patents, trademarks,
copyrights, franchises, and licensing agreements.
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VI)The Plan: Now the functional plans for marketing, finance, human resources and operations are
to be drawn.
1) Marketing Plan: Marketing mix strategies are to be drawn, based on the market research.
2) Operational Plan: The operational plan would give information about (i) Plant location: why
was a particular location chosen? Is it in the vicinity of the market, suppliers, labor or does it
have an advantage of government subsidies for that particular location or are there any other
specific reasons for choosing the particular location?, (ii) Plan for material requirements,
inventory management and quality control are also drawn for identifying further costs and
intricacies of the business. Finally, the budget for operational plan is also drawn.
3) Organizational Plan: The organizational plan indicates the pattern of flow of responsibilities
and duties amongst people in the organization, it provides details about the manpower plan that
would be required to put life into the business and it would also enlist the details about the laws
that would be governed in managing the employees of the organization. In the end the
organizational plan is also budgeted.
4) Financial Plan: The financial plan is usually drawn for two to five years for an existing
company. For a new organization the following projections are drawn: Projected Sales, Projected
Income and Expenditure Statement, Projected Break Even Point, Projected Profit and Loss
Statement, Projected Balance Sheet & Projected Cash Flows.
VII) Critical Risks: The investors are interested in knowing the tentative risks to evaluate the
viability of the business and to measure the risks involved in the business. This can further give
confidence to the investors as they can calculate the risks involved in the business from their
perspectives as well.
VIII) Exit Strategy: The exit strategies would provide details about how the organization would be
dissolved, what would be the share of each stakeholder in case of winding-up of the
organization. It further helps in measuring the risks involved in investing.
IX) Appendix: The last section of the business plan is the appendix and contains supporting
documentation. The appendix can provide information about the Curriculum Vitae of the owners,
Ownership Agreement and the like.
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Chapter 3: Business Formation

3.1. The Concept of Business Development
A business formation deals with the formalization and actual implementation of business ideas in to
practice. Based on socio- economic conditions, countries define small business differently. But all may
use size and economic criteria as a base to define small business. Size criteria include number of
employees and the startup capital. The economic/control definition covers market share, independence
and personalized management. Small and medium enterprises (SMEs) cover a wider spectrum of
industries and play an important role in both developed and developing economies. While the small
entrepreneurs can set up a unit even with less capital, enjoy quick returns and have the flexibility to
handle the vagaries(change) of the market, they have to face many problems like lack of finance, poor
operations management, lack of experience, poor financial management, etc,.
3.2. Forms of Business
There are three basic legal forms of business formation with some variations available depending on the
entrepreneurs’ needs. The three basic legal forms are: -
Legal Forms of Business Description
1) Proprietorship Form of business with single owner who has

unlimited liability, controls all decisions, and receives all
profits.
2) Partnership Two or more individuals having unlimited liability who have
pooled resources to own a business
3) Corporation Separate legal entity that is run by stockholders having limited
liability
It is very important that the entrepreneur carefully evaluate the pros and cons of the various legal forms
of organizing the new venture. This decision should be made before the submission of a business plan
and request for venture capital.
3.3. Definition and Importance of SMEs
Defining small business is not as easy as it looks: we have different definitions depending on the size of
the industry we are talking about, the purpose of the definition, and the country that the definition is
applicable to. The variables writers use in defining small businesses include: size of working capital,
number of employees, asset size, annual sales, market share, and operational domain. Small business is a
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business which employs less than 100 employees, is owned by one or few individuals, with the
exception of the marketing function has geographically localized operations, and does not dominate its
industry.
Worldwide, individual countries apply their own definitions and criteria in defining categories of small-
scale enterprise.
Classification of Enterprises in Ethiopian Context
1. In Case of Manufacturing Enterprise (Manufacturing, Construction and Mining):

a) A Micro Enterprise is one in which the investment in plant and machinery (total asset) does not
exceed birr100, 000 (one hundred thousand); and operates with 5 people including the owner.
b) Small Enterprises is one in which the investment in plant and machinery (a paid up capital of
total asset) of birr100, 000 (one hundred thousand) and not more than Birr 1.5 million; and
operates with 6-30 persons.
2. In Case of Service Enterprise (Retailing, Transport, Hotel and Tourism, ICT and
Maintenance):
a) A micro enterprise is one with the values of total asset is not exceeding Birr 50,000(fifty
thousands); and operates with 5 persons including the owner of the enterprise.
b) Small Enterprises is one in which the total asset value or a paid up capital of of birr100, 000
(one hundred thousand) and not more than Birr 500,000 Birr; and operates with 6-30 persons.
More clearly, the improved definition of MSE is presented in the table below.
When ambiguity is encountered between manpower and total assets as explained above, total asset is
taken as primary yardstick.
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Priority Sectors and Sub-Sectors for MSEs Engagement In Ethiopia

1. Manufacturing Sector- This is the one which comprises textile and garment; leather
and leather products; food processing and beverage; metal works and engineering
wood works including furniture and ornaments service; and agro-processing.
2. Construction Sectors- This is the one which comprises sub-contracting; building materials;
traditional mining works; cobble stone; infrastructure sub-contract; and prestigious goods
3. Trade Sectors- This is the one which comprises whole sale of domestic products; retail sale of
domestic products and raw materials supply.
4. Service Sectors- This is the one which comprises small and rural transport service; café and
restaurants; store service; tourism service; canning/packing service; management service;
municipality service; project engineering service; product design & development service;
maintenance service; beauty salon; and electronics software development; decoration and internet
café.
5. Agriculture Sector (Urban Agriculture) - This is the one which comprises modern livestock
raring; bee production; poultry; modern forest development; vegetables and fruits; modern irrigation;
and animal food processing.
A business is generally considered small if it is independently owned, operated, and financed; has few
employees; and has relatively little impact on its industry.
Generally, for a business to be small, it should meet the following criteria:
 One individual or small group finance the business
 Its operations are geographically localized
 It has relatively small share of the market in which it operates
 It is run by its owners or part owners
 Its management is personalized rather than formal
 The number of employees are fewer than 100
3.4. Special Contribution or Importance of Small Business
As part of the business community, small firms unquestionably contribute to our nation’s economic
welfare. They produce a substantial portion of our total goods and services. Thus, their general
economic contribution is similar to that of big business. They make exceptional contributions as they
provide new jobs, introduce innovations, stimulate competition, aid big business, and produce goods and
services efficiently.
3.5. Setting up Small Scale Business
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Steps for Setting up the Entrepreneurial Venture

The entrepreneurial process of launching a new venture can be divided into three key stages of:
Discovery; Evaluation; and Implementation. These can be further sub-divided into seven steps as shown
below:
Environmental Analysis: Entrepreneurship does not exist in a vacuum. It is affected by and affects the
environment.
a) Macro Environment
The macro environment of an entrepreneur consists of the political, technological, social, legal and
economic environments.
b) Sectoral Analysis
It is important to study the sector or industry conditions in which the entrepreneur proposes to launch a
venture. The purpose of industry analysis is to determine what makes an industry attractive. It is also
advisable to study the existing or potential competition, threat of substitutes and entry barriers.
SWOT Analysis
At this stage, conducting a SWOT analysis will help the entrepreneur to clearly identify his/her own
strengths and weaknesses as well as the opportunities and threats in the environment.
Strengths are positive internal factors that contribute to an individual’s ability to accomplish his/her
mission, goals and objectives. Weaknesses are negative internal factors that inhibit an individual’s
ability to accomplish his/her mission, goals and objectives. An entrepreneur should try to magnify his
strengths and overcome or compensate for his/her weaknesses.
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Opportunities are positive external options that an individual could exploit to accomplish his/her
mission, goals and objectives. Threats are negative external forces that hinder an individual from
accomplishing his/her mission, goals and objectives. These could arise due to competition, change in
government policy, economic recession, technological advances etc.
3.6. Small Business Failure Factors
Despite the importance of small businesses to the economy, there is no guarantee of small business
success. This failure can be attributed to a lot of factors, which can be generally classified in to two
categories:
A. External factors of failure
Every business is affected by externalities;
 Economic condition /business cycles
 Fluctuating interest rates
 Interrupted supplies
 Unstable financial markets
 Interrupted suppliers
 Government regulations
 Labor market trends
 Inflation
B. Personal factors of failure
The following can be cited as personal factors attributable to small business failures:
1) Inexperience: too often, entrepreneurs launch their enterprises without having sufficient experience
to succeed. Inexperience can be translated to mean a lack of technical skills of management insight.
2) Arrogance: Many small business persons become consumed with their own brilliance, convinced
beyond reason (often without market research) that their bright ideas will change the world-it has got
to sell. Their arrogance will not allow them to advice from others.
3) Mismanagement: humble entrepreneurs steeped in experience can still go under simply
mismanagement of resources; they simply make bad decisions in critical situations. These may
include:
4) Over investment in fixed asset: when starting or expanding a business, it is tempting to buy
facilities and equipment rather than lease or subcontract. Everyone likes to own assets, but greater
investment on fixed assets means less flexibility to adjust to adverse conditions.
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5) Poor financial control and inadequate record: Many entrepreneurs fail to realize that “income
statement” does mean full picture of “cash flow.”
6) Lack of planning: most entrepreneurs frequently underestimate the importance of planning in
business success. However, not planning means not anticipating future problems and challenges and
not being prepared for them in advance.
7) Lack of marketing research: in designing of their product negotiating with suppliers, sub-
contracting of its operation – small business must have current market information just like
technological change, price, quality, competitors’ action.
3.7. Small Business Success Factors
Small business success factors are categorized as:-
1. Conducive Environment; Successful small enterprises do not emerge, and thereafter survive and
grow unless the environment is conductive. Political, economic, technological and socio-cultural
factors in the environment impinge upon the life of the small enterprises and generate much of the
needs required for their existence.
2. Adequate Credit Assistance; Small enterprise development cannot be ensured without arrangement
for financing. Adequate and timely supply of credit is critical for new entrepreneurs to emerge
especially from a wide base.
3. Markets and Marketing Support; Market for a small enterprise in a developing country can be
quite a problem. The small business entrepreneur will be in competition not only with locally mass-
produced goods but even imports. The government can take an active part in marketing specific
products or assisting small groups of entrepreneurs in selling their products.
3.8. Problems of Small-Scale Business in Ethiopia
Lack of adequate finance and credit has always been a major problem of the Ethiopian small business.
Small-scale units do not have easy access to the capital because they mostly organized on proprietary
and partnership basis and are of very small size. Because of their size and partly because of the limited
profit, they search for funds for investment purposes. Consequently, they approach traditional money
lenders who charge extra high rate of interest hence small enterprise continue to be financially weak.
Small scale enterprises find it difficult to get raw materials of good quality at reasonable prices in the
field of production. Furthermore, the techniques of production, which the enterprises have adopted, are
usually outdated. Because of their poor financial position, they are not able to buy new equipment,
consequently their productivity suffers.
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3.9. Organizational Structure and Entrepreneurial Team Formation
3.9.1 Designing the Organization
The entrepreneur sometimes thinks that he or she can do everything and is unwilling to give up
responsibility to others or even include others in the management team. Regardless of whether one or
more individuals are involved in the start-up, as the workload increases, the organizational structure will
need to expand to include additional employees with defined roles in the organization. All the design
decisions involving personnel and their roles and responsibilities reflect the formal structure of the
organization. The design of the organization will be the entrepreneur’s formal and explicit indication to
the members of the organization as to what is expected of them. Typically, these expectations can be
grouped into the following five areas: -
 Organization structure- This defines members’ jobs and the communication and relationship these
jobs have with each other. These relationships are depicted in an organization chart.
 Planning, measurement, and evaluation schemes- All organization activities should reflect the
goals and objectives that underlie the venture’s existence. The entrepreneur must spell out how
these goals will be achieved (plans), how they will be measured, and how they will be evaluated.
 Rewards- Members of an organization will require rewards in the form of promotions, bonuses,
praise, and so on. The entrepreneur or other key managers will need to be responsible for these
rewards.
 Selection criteria- The entrepreneur will need to determine a set of guidelines for selecting
individuals for each position.
 Training- Training, on or off the job, must be specified. This training may be in the form of formal
education or learning skills.
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Chapter 4: Product & Service Development

4.1 Product
What is product?
A product is an overall concept of objects or processes which provide some value to customer; goods
and services are subcategories which describe two types of product. A product is anything that can be
offered to a market for attention, acquisition, use or consumption and that might satisfy a want or a need.
Products that can be marketed include physical goods, services, experiences, events, persons, places,
properties, organizations, information, and ideas.
Classification of a Product
Entrepreneurs have classified products on the basis of varying product characteristics: durability,
consumer behavior. Products can be classified into two groups according to their durability.
1. Non-durable goods: are tangible goods that normally are consumed in one or a few uses. Are
products that last for a short period of time. Examples are beer, soap and salt. They are consumed
quickly and purchased frequently.
2. Durable goods: are tangible products that last for long period of time. Examples include
refrigerators, machine tools, and clothing.
Products can be classified in to consumer good and industrial good according to their consumer
behavior.
1. Consumer products: - are products/ services bought for personal consumption.
Based on the shopping habit, consumer products are classified into four groups.
i. Convenience products: are products that consumers usually buy frequently with a minimum of
comparison and buying effort. E.g. soap, tobacco, fast foods etc. generally, these are a kind of
products with low price and hence are available in many locations by companies to sell when
customers need them.
ii. Shopping products: Shopping products are less frequently purchased consumer products that
consumers compare carefully on suitability, quality, price and style. When buying shopping
products, consumers spend much time and effort in gathering information and making
comparisons. Example includes furniture, clothing, hotel and airline service.
iii. Specialty products: Specialty products are consumer products with unique characteristics or
brand identification for which a significant group of buyers is willing to make a special purchase
effort. Examples include specific brands and types of cars, high priced photographic equipment,
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designer clothes, and the services of medical or legal specialists. Buyers normally do not compare
specialty products. They invest only the time needed to reach dealers carrying the wanted products.
iv. Unsought products: They are consumer products that the consumer either does not know about or
knows about but does not normally think of buying. Most major new innovations are unsought
until the consumer becomes aware of them through advertising. Classic examples of known but
unsought products and services are life insurance, gravestones and blood donations to the Red
Cross. By their very nature, unsought products require a lot of advertising, personal selling and
other marketing efforts.
2. Industrial products
A. Materials and parts: refer basic inputs in the production of other products.
B. Capital items: are fixed assets of an organization that facilitate developing or manufacturing the
finished product. They are not part of the finished product.
E.g. factory plants, office buildings and huge machineries and office equipment (PC’s, fax machines)
C. Supplies and services: supplies refer to those products that are consumed in the production process or
operation of buyers. E.g. lubricants, oil, paper, pencil, repair and maintenance items etc.
Product Life cycle
Products like human beings have a length of life. This is described as the product life cycle.
1. Introduction: new product is first distributed and made available for purchase. A period of slow
sales growth. Heavy expenses incurred with product introduction.
2. Growth: - Marked by a rapid climb in sales. New competitors enter in to the market attracted by the
opportunities for large-scale production & profit. It is a period of rapid market acceptance and
substantial profit improvement.
3. Maturity- Sales increase reaching its highest peak. Reduction in prices may occur in this stage.
Failing profits because of high promotional expenditure.
4. Decline: - The product sales declines as substitutes enter the market or customers become
dissatisfied or shift to other products. As sales and profit decline, some firms withdraw from the
market.
Maturity
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Department
a of Management Page 19
le Growth
s
Introduction Sales Decline
Figure 4.1: product life cycle

4.2. Product Development Process
1. Imitation: It is done by copying the other popular or best-selling products already existing in the
market.
2. Product Improvement: Product improvement consists of modification and improvement in the
existing quality, size, form or design.
3. Product Innovation: Product innovation is the development of a new product resulting in an
increase in the product line.
There are some sequential steps that companies need to pass through in developing new product.
Idea generation: refers to the systematic search for new product ideas. The major sources of new
product ideas include internal sources (such as employees, sales people, R&D, etc.) and external sources
(such as customers, competitors, distributors and suppliers).
Idea Screening: - The purpose of screening is to spot good ideas and drop poor ones as soon as
possible. As product development costs rise greatly in later stages, it is important for the company to go
ahead only with those product ideas that will turn into profitable products. Concept Development–
Attractive ideas must be developed into product concepts. A product concept is a detailed version of the
idea stated in meaningful consumer terms.
Concept testing: calls for testing new-product concepts with a group of target consumers. The concepts
may be presented to consumers symbolically or physically.
Marketing Strategy Development– After concept, the next step is marketing strategy development;
designing an initial marketing strategy for introducing the proposed product to the market.
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Business Analysis– Business analysis is the basic assessment of the product’s compatibility in market
place and its potential profitability. Cost-benefit analysis is made to see the viability of the product if
manufactured. If the benefit is greater than the cost, then the move to the product development is
progressed. Otherwise, the idea can be rejected at this stage.
Product Development Stage- So far, for many new-product concepts, the product may have existed
only as a word description, or a drawing. If the product concept passes the business test, it moves into
product development. Here, research and development (R&D) Unit or engineering develops the product
concept into a physical product. It will show whether the product idea can be turned into a workable
product. R&D hopes to design a prototype that functions, is able to satisfy and excite consumers and can
be produced quickly and at budgeted costs. When the prototypes are ready, they undergo rigorous
functional tests under laboratory and field conditions to make sure that the product performs safely and
effectively.
Market testing- Test marketing gives the marketer experience with marketing the product before going
to the great expense of full introduction
Commercialization- Test marketing gives management the information needed to make a final decision
about whether to launch the new product. If the company goes ahead with commercialization-that is,
introducing the new product into the market-it will face high costs.
The Company launching a new product must make four decisions:

When? The first decision is timing issue-whether the time is right to introduce the new product.
Where? The company must decide where to launch the new product. Should it be in a single location, or
region, several regions, the national market or the international market?.
To whom? Within the rollout markets, the company must target its distribution and promotion to
customer groups who represent the best prospects. These prime prospects should have been profiled by
the firm in earlier research and test marketing.
How? The company also must develop an action plan for introducing the new product into the selected
markets.
Concept and Nature of Service

A service is any act or performance that one party can offer to another that is essentially intangible and
does not result in ownership of anything.
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Governments offer services through courts, employment services, hospital, loan agencies, military
services police and fire department.
Private nonprofit organization offer services through museums, charities, churches, colleges, or
hospital.
Business organizations offer services through airlines, banks, hotels, insurance company, medical and
legal services entertainment companies
Nature and characteristics of service
Service has four special/ major characteristics. They are
Service intangibility; this means services cannot be seen, tasted, felt, heard or smelled before they are
bought; e.g. Airline passengers have nothing but a ticket and the promise of safe delivery to their
destinations.
Service inseparability; they are produced and consumed at the same time and cannot be separated from
their providers (ownership can’t be transferred).
Service Variability; their quality may vary greatly, depending on who provides them and when, where,
and how
Service perishability; services cannot be stored for later sale or use.
Service Quality and Its Dimensions
Quality is defined as conformance to standards. Service quality is the delivery of excellent or superior
service relative to customer expectations. The following dimensions of quality are applied to services:
1. Reliability: It is defined as the ability to perform the promised service dependably and accurately.
2. Responsiveness: is the willingness of the service providers to help customers and to provide prompt
service.
3. Assurance: is defined as employees’ knowledge and courtesy and the ability of the firm and its
employees to inspire trust and confidence.
4. Empathy: is defined as the caring, individualized attention the firm provides to its customers.
5. Tangibles: are defined as the appearance of physical facilities, equipment, personnel, and
communication materials.
4.3. Legal and Regulatory Frameworks for Entrepreneurs
Since there are many options that an entrepreneur can choose in setting up an organization, it will be
necessary to understand all the advantages and disadvantages of each regarding such issues as liability,
taxes, continuity, transferability of interest, costs of setting up, and attractiveness for raising capital.
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Legal advice for these agreements is necessary to ensure that the most appropriate decisions have been
made.
4.5. Intellectual Property Protection/Product/Service Protection
Product protection concerned with intellectual property protection. Intellectual property is a general term
that describes inventions or other discoveries that have been registered with government authorities for
the sale or use by their owner. Intellectual property is protected by such legal means as patents,
copyrights, trademark and trade secret registrations. In order to enjoy the benefits arising from the
exclusive ownership of these properties, the entrepreneur needs to protect these assets by the relevant
law.
1. Patents: An entrepreneur who invents a new thing or improves an existing invention

needs to get legal protection for his/her invention through a patent right. A patent is a
contract between an inventor and the government in which in exchange for disclosure of
the invention, grants the inventor, the exclusive right to enjoy the benefits resulting'
from the possession of the patent.
A. Utility Patent: A utility patent protects any new invention or functional
improvements on existing inventions.
B. Design Patent: This patent protects the appearance of an object and covers new,
original, ornamental, and unobvious designs for articles of manufacture. This type of
patent covers only the appearance of the product, not the idea, underlying concept, or
functionality of the product.

What Can Be Patented?
 Processes: Methods of production, research, testing, analysis, technologies with new
applications.
 Machines: Products, instruments, physical objects.
 Manufactures: Combinations of physical matter not naturally found.
 Composition of matter: Chemical compounds, medicines, etc.
Figure 4..2: A Depiction of Symbol of Patent
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2. Trademarks: A trademark relates to any word, name, or symbol, which used in trade to distinguish
a product from other similar goods. Trademark laws are used to prevent others from making a
produced with a confusingly similar mark. Trademarks can be names in commerce, such as Coke,
clearly trademarked by Coca-Cola Corporation. A trademark can be a symbol, such as Apple
Computer Corporation’s unusual apple with a bite in the side.
Figure 4.3: Trademarks of various companies
3. Copyrights: Copyright is a right given to prevent others from printing, copying, or publishing any
original works of authorship. Copyrights provide exclusive rights to creative individuals for the
protection of literary or artistic productions. It protects original works of authorship including
literary, dramatic, musical, and artistic works, such as poetry, novels, movies, songs. A copyright is
distinct from patents and trademarks; in that, intellectual property is protected for the life of the
originator.
Figure 4.3: Symbol of Copyright
4. Trade secrets: A trade secret is defined as knowledge, which may include business knowledge or
technical knowledge, that is kept secret for the purpose of gaining an advantage in business over
one’s competitors. Trade secret is a formula, process, device, or other business information that is
kept confidential to maintain an advantage over competitors. Customer lists, sources of supplies of
scarce materials, or sources of supplies with faster delivery or lower prices may be trade secrets.
Figure 4.4: Symbol Depicting Secret Content
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Chapter 5: Marketing
5.1. Introduction
Business firms and non-profit organizations engage in marketing. In a broad sense, marketing consists of
all activities designed to generate or facilitate an exchange intended to satisfy human needs. The concept
of market is very important in marketing. The American marketing Association defines a market as “The
aggregate demand of the potential buyers for product or a product or services “. Philip Kotler defines “A
market as an area of potential exchanges”. Thus, a market is a group of buyers and sellers interested in
negotiating the terms of purchase/sale for goods or services.
Marketing management is the art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering, and communicating superior customer value. Marketing
old sense of making a sale - 'selling' - but in the new sense Marketing is meeting customers’ needs and
wants profitably. Marketing deals with customers. Selling is an action which converts the product in to
cash whereas marketing is the process of matching and satisfying the customer needs and wants. Selling
occurs only after a product is produced. By contrast, marketing starts long before a company has a
product.
5.2. Definitions of Marketing

Marketing can be defined in various ways. The simplest definition of marketing is – “managing
profitable customer relationships”. According to Philip Kotler, Marketing is a social process by
which individuals and groups obtain what they need and want through creating, offering, and freely
exchanging products and services of value with others. American Marketing Association, also define as
marketing is the process of planning & executing the conception, pricing, promotion & distribution of
ideas, goods & services to create exchange that satisfy individual & organizational goals. The
Chartered Institute of Marketing defines Marketing as: “Marketing is the management process for
identifying, anticipating & satisfying customer requirements profitably.”
5.3. Core Concepts of Marketing
A. Needs, Wants & Demand
Needs: is a state of felt deprivation or basic human requirements. E.g. food, cloth, shelter, etc.
Wants: Wants are desires for specific satisfiers of needs. Wants are shaped by culture & individual
personality. E.g. A person needs food but wants spaghetti.
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Demands: Demands are wants for specific products that are backed by ability and willingness to buy
them.
B. Value: A set of benefits promised to consumers to satisfy their needs.
C. Product: - is anything that can be offered to satisfy a need or want.
D. Exchange - is the act of obtaining a desired object from someone by offering something in return.
E. Marketing offer – “Combinations of products, services, information or experiences offered to a
market to satisfy a need or want”.
F. Utility- is the satisfaction of customers that are getting from using the product. The level of
satisfaction is measured by using utility.
5.4. The Concept and Philosophy of Marketing
There are five alternative concepts under which organizations design and carry out their marketing
strategies.
1) Production Concept: it holds that consumers will favor products that are widely available
(accessible) and highly affordable (low in price), inexpensive. Therefore, the organization should
focus on improving production and distribution efficiency.
2) Product Concept: it holds that consumers will favor products that offer the most quality,
performance and innovative features. Therefore, the organization should devote its energy to making
continuous product improvements. ‘A good product will sell itself’
3) Selling Concept: it holds that consumers will not buy enough of the firm’s products unless it
undertakes a large-scale (aggressive) selling and promotion effort.
4) Marketing Concept: it holds that achieving organizational goals depends on knowing the needs and
wants of target markets and delivering the desired satisfactions better than competitors do. The
marketing concept has been expressed in many colorful ways:
 Meeting needs profitably
 Find wants & fills them
 Love the customers, not the product
 The customer is King!’
5) Societal Marketing Concept: it holds that marketing strategy should deliver value to customers in a
way that maintains or improves both the consumer’s and the society’s well-being.
5.5. Marketing Mix and Strategies
5.5.1. Marketing Mix Elements (4P’s)
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Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the
target market. The marketing mix is also referred to as the Four Ps: product, place, price, and promotion.
1) Product: refers to goods/services produced for sale. A tangible good, an intangible service, or a
combination of these.
2) Price: is the amount of money charged for a product or service. It is the sum of the values that
consumers exchange for the benefit of using the product/service. Price is the only element in the
marketing mix that produces revenue; all other elements represent costs.
3) Place: means the different ways of getting your products or services to your customers. It is also
referred to as distribution. It is about getting the goods or services to the right place at the right time
for the customer. It is the movement of goods and services from the place of producer through
middlemen to the ultimate consumers/users.
4) Promotion: Refers informing your customers of your products and services and attracting them to
buy them. It is the communication of the company and its products to customers.
What Is Marketing Strategy?
A marketing strategy combines product development, promotion, distribution, pricing, relationship
management and other elements; identifies the firm's marketing goals, and explains how they will be
achieved, ideally within a stated timeframe. Marketing strategy determines the choice of target market
segments, positioning, marketing mix, and allocation of resources.
 Pricing Strategy: - The following are some of pricing strategies mostly applicable in the real-world
scenario.
A. Price Skimming: this is a type of pricing strategy that firms use by charging the highest
possible price that buyers who most desire the product will pay. It is setting higher price initially
and lowering when new competitors enter the market.
B. Penetration Pricing: In this strategy, prices of products are reduced compared to competitors’
price for the same product to penetrate into markets and to increase sales. It is setting low initial
price in order to penetrate the market quickly and deeply to attract large number of buyers and to
have large market share.
C. Psychological pricing: based on the belief that certain prices or price ranges are more appealing
to buyers. This method involves setting a price in odd numbers (just under round even numbers)
such as $49.95 instead of $50.00. Although not supported by any research findings, its
proponents claim that the consumers see a $49.95 price as 'just in the price range of $40’rather
than in the $50. Setting the price of a product in a way that will alter its perception by customers.
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D. Geographic Pricing: The distance between the seller and the buyer is considered. Setting prices
for customers located in different parts of the country.
E. Competition -based Pricing – It is setting price based on the prices that competitors charge for
similar products. Setting prices relative to competitors.
F. Time-based pricing- a firm varies its price by the season, the month, the day, and even the hour.
 Promotion Strategies: - Promotional strategy is choosing a target market and formulating the most
appropriate promotion mix to influence it. An organization’s promotional strategy can consist:
Promotional mix used to inform, persuade and remind about the goods and services that they provide
to the market.
I. Advertising: It is any paid form of non-personal, one-way, mass communication about an
organization, good, service, or idea by an identified sponsor. Advertising is a way to bring attention
to your product or business by publishing or broadcasting a message to the public through various
media. Your choices of media include the following:
• Print media: newspapers, magazines.
• Broadcast media: radio, television.
• Outdoor media: billboards or posters placed on public and other transportation.
II. Personal selling: This is the two-way flow of communication between a buyer and seller, often in a
face to face encounter, designed to influence a person’s or group’s purchase decision. Personal
selling involves a personal presentation by a salesperson for the purpose of making sales and
building relationships with customers.
III. Public relations: Public relation is a form of communication that seeks to change the perceptions of
customers, stakeholders, suppliers, employees and other publics about a company and its products.
IV. Sales promotion: This promotion type involves short term incentives of value such as discounts,
free samples, and prizes to be offered to arouse interest of customers in buying the good/service.
 Distribution Strategies: - marketing channels are the most important actors for the effective and
efficient distribution of products. Marketing Channels are individuals/organizations involved in the
process of making the product available for use or consumption by consumers. Direct channels: In
this type of channel, producers and end users directly interact. Indirect channels: In this type of
channel intermediaries are inserted between seller and buyer. Intermediaries include Wholesalers,
retailers, agents, brokers.
5.6. Marketing Information System
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A marketing information system consists of people, equipment and procedure to gather, sort, analyze,
evaluate and distribute needed timely and accurate information to marketing decision makers. The role
of the information system is to assess the manager’s information needs, develop the needed information,
and distribute the information is a timely fashion to the marketing managers. The needed information is
developed through internal company records, marketing intelligence activities, marketing research, and
marketing decision support analysis.
5.6.1 Marketing Research
Marketing research is a systematic design, collection, analysis, and reporting of data relevant to a
specific marketing situation facing the company. It is the process of gathering information about
consumers that will improve marketing efforts. Accordingly, marketing research involves the
identification, collection, analysis, and dissemination of market information. Market research helps the
marketer to anticipate or respond to customer needs.
Marketing Research Process
The marketing research process follows six basic steps:
1. Define the problem
The foremost decision that every firm has to undertake is to find out the problem for which the research
is to be conducted. It represents the single most important step to be performed. A well-defined problem
is half-solved problem. An accurate problem formulation specifies the types of information needed to
help solve the marketing problem. In order to define the problem appropriately, each firm must have a
clear answer to the questions. These are: What is to researched? (content and the scope), Why the
research is to be done? (decisions that are to be made).
2. Develop the research plan
This step involves gathering the information relevant the research objective. It includes:
 Data sources: the researcher can collect the data pertaining to the research problem from either
the primary source or the secondary sources or both the sources of information. The primary
source is first-hand data that does not exist in any books or research reports whereas secondary
data is the second-hand data which is available in the books, journals, reports.
 Sampling plan: once the research approach is decided, the researcher has to design a sampling
plan and have to decide on the following.
 Sampling unit: whom shall we survey?
 Sample size: how many units in the population shall be surveyed?
 Sampling procedure: how the respondents shall be chosen?
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 Contact methods: the researcher has choose the medium through which the respondents can be
contacted. Mediums- emails, telephone, in person.
3. Collect the information: the researcher has to adopt the methods to collect the information.
4. Analyze the information: the researchers apply several statistical techniques to perform the
analysis.
5. Present(report) the findings: finally, all the findings are presented to the top management these
are; managing director, CEO, or board of directors to make the marketing decisions in line with the
research. The report includes the major findings and suggestions for actions. In addition, an oral
presentation should be made to management using tables, figures, and graphs to enhance clarity and
impact.
6. Make the decision: this is the last step of marketing research.
5.6.2. Marketing Intelligence
A marketing intelligence is a set of procedures and sources used by managers to obtain their everyday
information about pertinent developments in the marketing environment. Marketing managers often carry on
marketing intelligence by:
 Reading books, newspapers, and trade publications;
 Talking to customers, suppliers, distributors and other outsiders; and
 Talking with other managers and personnel within the company.
Marketing intelligence is carried out by the manager him/herself rather than a professional researcher.
Marketing research is more company specific whereas marketing intelligence encompasses marketing
research. Marketing research is done by professional researcher but not marketing intelligence.
Ways to Undertake Marketing Intelligence
i. Unfocused scanning: Any information that may be useful is gathered without any specific purpose
in mind.
ii. Semi-focused scanning: no specific purpose. The manager is not in search of particular pieces of
information that he/she is actively searching but does narrow the range of media that is scanned. For
instance, the manager may focus more on economic and business publications, broadcasts etc. and
pay less attention to political, scientific or technological media.
iii. Informal search: - limited and unstructured attempt to obtain information for a specific purpose.
For example, entering the business of importing frozen fish from a neighbouring country may make
informal inquiries as to prices and demand levels of frozen and fresh fish.
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iv. Formal search: - The information will be required to address a specific issue. Whilst this sort of
activity may seem to share the characteristics of marketing research it is carried out by the manager
him/herself rather than a professional researcher. Moreover, the scope of the search is likely to be
narrow in scope and far less intensive than marketing research.
5.7. Competitive Analysis
Competitive analysis refers to determining the strengths and weaknesses of competitors and designing
ways to take opportunities or tackle threats posed by competitors. It is the process identifying
competitors and evaluating their strategies.

Competitive analysis is a method of gathering data about competitors from different sources. It should
answer the following questions:
 Who are your competitors?
 What customer needs and preferences are you competing to meet?
 What are the similarities and differences between their products/services and yours?
 What are the strengths and weaknesses of each of their products and services?
 How do their prices compared to yours?
 How do you plan to compete? Offer better quality services? Lower prices? More support?
Easier access to services? How are you uniquely suited to compete with them?
5.8. Selling and Customer Service
Customer service is what happens between the customer determining his/her needs and receiving the
desired benefits. However, most service providers do not appropriately understand what service
delivery really means. For this reason, many organizations fail to improve the level of their customer
service delivery.
The Concept of Customer
Customer is a person or organization that buys a product or service either for use or for resale.
Customers can be internal (e.g. member of the organization) or external (customers coming from
outside).
Customer Handling and Satisfaction
Customer handling and satisfaction is a key for successful organizations. Managers and employees
should work hand-in-hand to improve their service delivery programs. Existing customers must be
satisfied with the existing service. Poor service/defective service is the causes of loss and bankruptcy
for many organizations. Retaining existing customers, however, requires systematic handling. Attracting
new customers is directly related to keeping existing customers satisfied. The major reasons to lose
customers are:
o Poor service,
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o Poor quality and

o Rude behaviour.
To increase customer satisfaction as a marketer you should Consider Customers as an Invaluable
Asset, you Reduce Customer Complaints and should Place Yourself in The Customer’s Shoes.
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Lecture Note On: Entrepreneurship & Business Development

1. Definition and philosophy of Entrepreneurship Vs Entrepreneurs

1.5. Role of Entrepreneurs in Economic Development

1.6.1. Entrepreneurial Skills

Chapter 2: Business Planning

5) Assessment of the Entrepreneurial Team

4. Scanning Your Environment

Essentials of a Sound Business Plan

Chapter 3: Business Formation

Legal Forms of Business Description

1) Proprietorship Form of business with single owner who has

Classification of Enterprises in Ethiopian Context

1. In Case of Manufacturing Enterprise (Manufacturing, Construction and Mining):

Priority Sectors and Sub-Sectors for MSEs Engagement In Ethiopia

Steps for Setting up the Entrepreneurial Venture

3.9. Organizational Structure and Entrepreneurial Team Formation

3.9.1 Designing the Organization

Chapter 4: Product & Service Development

Product Life cycle

Figure 4.1: product life cycle

The Company launching a new product must make four decisions:

Concept and Nature of Service

1. Patents: An entrepreneur who invents a new thing or improves an existing invention

functionality of the product.

Figure 4..2: A Depiction of Symbol of Patent

Figure 4.3: Trademarks of various companies

Figure 4.3: Symbol of Copyright

Figure 4.4: Symbol Depicting Secret Content

5.2. Definitions of Marketing

5.6.1 Marketing Research

competitors and evaluating their strategies.

o Poor quality and

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