Entrepreneurship

A presentation by Muteba Ngonga

Who is an entrepreneur ?

There is no universal definition of the word

Some definitions

Entrepreneurship is living a few years of your life like most people wont so
that you can spend the rest of your life most people cant

The act of seeing opportunity where many see chaos, confusion or hardship

Challenging the unknown and continuously create the future

Being willing and able to covert a new idea or invention into a successful
innovation

Entrepreneurship is taking risks whereby someone puts u his /her career and
financial security on the line and takes the risks in the name of an idea,
spending much time as well as capital on an uncertain venture

Misconceptions about entrepreneurship

Successful entrepreneurship needs only a great idea

Entrepreneurship is easy

Entrepreneurship is a risky gamble

Entrepreneurship is found only in small businesses

Entrepreneurial ventures and small businesses are the same thing

Why is entrepreneurship important ?

Limited employment opportunities for a growing population

Demographic changes now more women are joining the working class than
before

Innovation Process of creating, changing, experimenting, transforming, and

revolutionizing

Number of New Start-ups Important because new firms contribute to

economic development through benefits such as product-process innovation

Job Creation Vital to the overall long-term economic health of communities,

regions, and nations

Creation of wealth entrepreneurship is a proven way of creating wealth

Life style changes lifestyles taken up by people cannot be sustained by

employment alone

Challenges for the women

entrepreneurs

Lack of capital

Lack of investor confidence

Gender bias, including being asked personal questions

(marriage, children, work-life balance)

Challenge of balancing professional and personal

commitments.

Lack of a strong network

Not being taken seriously as entrepreneurs.

Challenges in the economy

Entry barriers created by big business , market conditions , regulations

High cost of finance currently 30-50% depending on bank

Volatile exchange rate

High inflation

Cheap imports from Asia

Mature

Characteristics of Entrepreneurs
Common Characteristics of Entrepreneurs
Commitment, determination, and
perseverance
Drive to achieve
Opportunity orientation
Initiative and responsibility
Persistent problem solving
Seeking feedback
Internal locus of control
Tolerance for ambiguity
Calculated risk taking
Tolerance for failure
High energy level
Creativity and Innovativeness
Vision
Self-confidence and optimism
Independence
Team building

Essential ingredients include:

The willingness to take calculated risks in terms of time, equity, or career.

The ability to formulate an effective venture team;

The creative skill to marshal needed resources.

The fundamental skills of building a solid business plan.

The vision to recognize opportunity where others see chaos, contradiction,
and confusion.

Strengths in women Vs strengths in men

The Entrepreneurial Process

1 Exploring the
Entrepreneurial
Context

2. Identifying Opportunities and

Possible Competitive Advantage
Opportunities are positive external
trends or changes that provide
unique and distinct possibilities for
innovating and creating value
Competitive advantage is what sets
an organization apart; its
competitive

3. Starting the Venture

4. Managing the Venture

Exploring the Entrepreneurial Context

Surprising Signs You Could Be an Entrepreneur

1. Hate the Status Quo It doesn't make sense to you that something has
been done the time-honored way with no explanation why. You are not
someone who wants to just go through the motions or sit by idly. Nor do you
like following the pack.
2. Easily Bored - You find yourself easily bored, and others start viewing you
as a problem. But nothing is wrong with you except that you are bored with
activities that aren't up to your abilities and aren't challenging. That's why
you hated most of the classes you ever attended. Think Bill Gates who
dropped out of college to become one of the richest men in the world.
3. Fired from Jobs You're too creative for your own good when it comes to
working for others, and you may have some history, as I do, of losing jobs.
Being just a cog in wheel is very difficult for you because you want to create
something others can be inspired by and contribute to.

Exploring the Entrepreneurial Context

( contd)
4.

Labeled a Rebel - You know that greatness resides outside the lines of
conformity and don't think that policies, laws and regulations apply to you. You
have been described as a rebel and rule breaker and would defy gravity if you
could.
5. Resist Authority - You have a lifelong record of resisting authority from your
parents, teachers and bosses. You don't go along with the agreed upon norms of the
group or community you work and live in.
6. Ready to Improve Everything - You always see how you could do things better.
In addition, you are opinionated and freely give your two-cents about your better
way of doing things--even when you're not asked.
7. Bad at Making Small Talk - You have difficulty making the kind of small talk that
so many people get comfort from. This social pattern of relationship and rapport
building seems like a waste of time to you and makes you uncomfortable.

Exploring the Entrepreneurial Context

( cont)

8. Bullied in Your Youth - You may have been heavily criticized, picked on and even bullied as a child
or teenager. This has caused you to be driven to excel and to prove to the world that you are indeed a
force to be reckoned with.

9. Obsessive - You may have been labeled obsessive/compulsive because when you get started on
something you have difficulty letting go. Don't let anyone convince you that this is a disease or
deficiency. All of the great entrepreneurs become completely immersed in their vision. Howard
Schultz stuck with Starbucks even when his family tried to persuade him not to.

10. Scared to Go Solo - The entrepreneur in you is scared of going out on your ownand also terrified
of not doing so. This fear is so common in our society because we've been conditioned to think that
entrepreneurship is much riskier than getting a "good job." The reality is there is instability in both.

11. Unable to Unwind - You can't go to sleep at night because you can't turn your thoughts off. An
idea may even manifest itself in your dreams. The next morning you find yourself still consumed with
that idea, distracting you from the job you're supposed to be doing.

12. Don't Fit the Norm - You have always been a bit uncomfortable in your own skin. Until you get
used to the idea that you are in fact different from most people, it could prove to be a problem--or
exactly the motivation you need to acknowledge the entrepreneur screaming to get out.

Identifying Opportunities and Possible Competitive

Advantage
Completely new idea

Starting the Venture

Business plan development

Company / business name registrations,

Bank accounts

Tax registrations (ZRA)

Councils licenses and permits

Other regulatory requirements

Selection and acquisition of site for operations

Acquisition of machinery, equipment, computers

Recruitment of staff

Managing the Venture

Typical business structure
Operations

Concept of a business activities and

processes
BUY

MAKE

LABOUR
PROPERTY, PLANT AND EQUIPMENT
FINANCE

SELL

Typical business process

Procurement buy of inputs such as raw materials, consumables

Production conversation

Marketing and Sales

Human Resource Management

Financial Management and Reporting

Ways to Help Ensure Your Business

Succeeds

Have a written plan.

Have WRITTEN policies and procedures on the various

processes

Implement internal controls systems

Don't marry your plan., be flexible

Keep track of everything, and manage by the numbers

( have a proper finance and accounting system) . Also a
legal requirement

know the financial fundamentals that drive your business,

and what your biggest areas of both profit and cost . Also
understand your cashflow

Delegate to employees and avoid micromanaging them.

Have a system to manage the performance of your workers

Use modern tools in your business . E.g the Internet.

Reinvent your business and reinvest in your business

Keep your ego in check and listen to others

Pay our taxes

Understand the language of finance

Every activity that you do is connected with Finance . You will be at edge if you understand and
assess the financial implications before you take a decisions.

It is the language that is discussed in the Board rooms. Hence, by knowing Finance you will at
advantage in your career ahead.

Inside Edge the more you know about finance, the more insights you will get about the Business.

You can understand better the accountants language when you deal with them day

to day.

If you understand finance better, you can relate to your area of Business and on the sanctity of the
numbers prepared by finance depts..

When you know the drivers of financial performance, you will drive the respective business
activities in order to achieve better performance

Opportunities in Zambia

Hospitality

Education

Farming

Food and catering

Internet based businesses

Mobile based businesses