FOSTERING ENTREPRENEURSHIP

1.Companies w i t h existing corporate social responsibility programs

can focus some of their resources on entrepreneurship so as create
opportunities for venturing into entrepreneurship.
2.Governments can direct their development and investment
promotion strategies t o w a r d j o b - creating industries and conside
providing incentives traditionally.
3.Government can establish m andat or y national service programs
such as those in Ghana and Nigeria, t h a t require graduates t o
serve a year in various sectors. Such programs should also

encourage a portion of the participants t o enter 23

into collective social entrepreneurship.
FOSTERING ENTREPRENEURSHIP

4.Government and other successful enterprises

can organize entrepreneurship seminars and
public lectures to equip people w i t h knowledge
and skills of w h a t i t takes to own a successful
enterprise.
5. Keep taxes low for startups.
6.Organizing trade shows/ trade fairs. In these,
people are able to show case different products
and services to others, which equips the viewers
w i t h more knowledge, skills, ideas to employ in
various enterprises.
24
FOSTERING ENTREPRENEURSHIP

7.Setting up entrepreneurship competitions.

Through these, people are attracted to
participate and w i n various prizes to s ta rt up or
even grow their enterprises.
8.Assigning challenging project assignments to
different groups for example students, SACCO
members, and m a n y others. These trigger t h e m
to exercise creativity and innovation.
9.In an effort to cultivate and boost
entrepreneurial activity, government can
support research and development programs
and “business incubators” to accelerate
25
innovation, knowledge creation and boost the
number of start-ups.
FOSTERING ENTREPRENEURSHIP

1 0 . The government can issue soft loans and

grants to enterprises t h a t are starting up
e.g the Youth Livelihood Fund, and youth
SACCOs (Saving and Credit Cooperatives).

26
Business
Environment:
Business Environment refers to those aspects
of the surroundings of business enterprise, which affect
or influence its operations and determine its
effectiveness.

According to Keith Davis:

“Business environment is the aggregate of all
conditions, events and influence that surrounds and
affects it”
 Meaning and definition of business environment

• it is said that the business can not exist, survive in its isolation. it need support
from different aspects of its surrounding.
• that surrounding factors around the business is known as environment. it may be
living or non - living but its support, positive response is essential for business
smooth functioning.
• therefore we can summarize environment as all those factors or forces, residing
besides the business and affecting its functions or various decisions of the
business. a business environment consists of two types of environment known as
internal environment and external environment
 Business:
Business is a human activity carried out by
the unified efforts of different categories of people, to
produce the wealth through production and distribution of
the goods and services.
According to Malvin Anshen :
“ Business is the way by which men make
their living.”
According to Bayard O’Wheeler :
“ Business is an institution organized and
operated to provide goods and services to society under
the incentive of private gain.”
 Environment:

The birth, growth and continuous

development of organization are influenced by a wide
range of variables like employees, customers, suppliers,
producers, competition etc.
 NATURE OF BUSINESS
 Complex:
ENVIRONMENT
Environment consists of a number of factors, events, conditions
arising from different sources which impact business thus making the
business complex.

 Interdependence :
Factors affecting business environment like social, economic, legal,
cultural etc are inter dependent.

 Dynamic:
Business environment is dynamic as it keeps on changing in terms of
technological improvement, changes in consumer preferences, entry of
new competitors.
 UNCERTAINITY:
Business environment is largely uncertain as it is very difficult to
predict future happenings.

 Relativity:
Business environment is a relative concept as it differs from
country to country and region to region.
e.g. Demand of Matooke is high in some parts in Uganda esp
western and central comparative to other regions and countries.
 Specific and General forces:
Specific forces affects individual enterprises directly and
immediately whereas general forces have impact on all business
enterprises.

 Forecasting is not possible for all developments:

Many developments such as interest rate fluctuations, the rate of
inflation etc are difficult to predict on log term basis which makes difficult
to maintain business environment.
 OBJECTIVES OF BUSINESS
ENVIRONMENT
 Knowledge of Information:
Every businessman should be aware about the current
environment of the business to change accordingly.

 Basis of Decision:
It contains all the information which is needed for taking good
decision.
e.g. If a business knows about its competitors, suppliers and customers
they take decision about price, purchase, salary etc.

 Helpful in making of policies:

For making good business policies one needs to know and scan
business through business environment.

TECHNOLOGICAL
PLANNING:
In today's environment it is really important for the business
houses to keep themselves changing according to the technological
changes in the market.

 Survive in the business:

Sometimes industry may face recession. In such condition only
those business will survive who estimate this entire situation in
advance through business environment study.
IMPORTANCE OF ENVIRONMENTAL ANALYSIS

• there are three main reasons for carrying out environmental analysis:
• i) policies oriented role top level management requires information to develop
policies that will ultimately help the firm to improve its performance.
• environmental analysis inform the management about major trends
maintaining the environment that can facilitate or impede successful
attainment of organizational objectives.
• ii) integrated strategy planning role strategic planning requires integration of
external and internal environment.
• environmental analysis assists in linkage of corporate level and functional
level of plans. environmental analysis can improve organizational performance
by making top management aware of issues that in the firm’s environment that
have a direct impact on planning.
 FUNCTIONAL ORIENTED

• II) GROWTH FUNCTIONS SUCH AS MARKETING, PRODUCTION, RESEARCH AND

DEVELOPMENT, SUPPLY CHAIN ETC REQUIRES ENVIRONMENTAL INFORMATION
FOR GROWTH. EFFECTIVE PERFORMANCE IN THESE FUNCTIONS WILL DEPEND
ON AVAILABLE INFORMATION ON WHAT IS HAPPENING AROUND.
 MICROENVIRONMENT

is also called the internal environment. it include forces affecting

operations that are within the control of the company, that is the
company is able to manipulate these forces towards the firm
advantage.
 THE MICROENVIRONMENT

• THE INTERNAL ENVIRONMENT CONSISTS OF FIVE(5) EQUALLY

POWERFUL FORCES NAMELY:
• 1.MANAGEMENT 2.MARKETING
• 3.FINANCE
• 4.PRODUCTION AND OPERATIONS5.HUMAN RESOURCES
 MANAGEMENT

• this pertains to the organizational setup, including goals and

objectives, organizational structure, managerial composition,
company
philosophy,vision,mission,policies,programs,plans,strategies,ta
ctics etc.
 MARKETING

• This includes the marketing program of the company covering the

basic marketing mix (product,price,place and promotion). Specific
forces falling under this force are product quality, packaging, pricing
strategies, intermediaries used, advertising efforts, public relations,
company image and reputation, distribution channels, warehousing,
discounts and other sales promotion tools, market segmentation
 FINANCE

• This includes the company’s resources. Items covered

• Under this force are profitability indices, financial performance,
balance sheet and incomes statement, assets, liabilities, networth,
investments, capital expenditures and operating expenses
 PRODUCTION AND OPERATIONS

• This includes all aspects of manufacturing or operations. Specific

items falling under this force are quality and sources of raw materials,
machinery and equipment, production efficiency, service reliability,
technical expertise, production credo,
scheduling,delivery,salesservice,maintenance,factory location
 HUMAN RESOURCES

• This aspect pertains to the people in the organization.

Specifically it includes motivation, compensation, training
development, promotion, recruitment, selection,placement,
hiring policies and procedures, fringe benefits, performance
appraisal, grievance handling mechanisms, management labor
relations.
 HUMAN RESOURCES

• This aspect pertains to the people in the organization. Specificall it

includemotivation,compensation,trainingdevelopment,promotion,recr
uitment,selection,placement, hiring policies and procedures, fringe
benefits, performance appraisal, grievance handling mechanisms,
management labor relations.
 MACRO ENVIRONMENT

• Is also called the external environment, consisting of forces that are

beyond a company’s control.
 THE MACRO ENVIRONMENT

• THE EXTERNAL ENVIRONMENT CONSISTS OF THE

POWERFUL FORCES NAMELY:
• 1.ECONOMIC ENVIRONMENT
• 2.SOCIO CULTURAL ENVIRONMENT
• 3.POLITICO-LEGAL ENVIRONMENT 4.TECHNOLOGICAL
ENVIRONMENT
• 5.NATURAL ENVIRONMENT
 THE MACRO ENVIRONMENT
ECONOMIC ENVIRONMENT

• This environment includes such forces as balance of trade, balance of

payments, foreign exchange, import-export situations, competitive
situation,taxation,energy and oil prices, employment, GNP, GDP, per
capita income and other measures of economic performance.
 THE MACRO ENVIRONMENT
SOCIOCULTURAL ENVIRONMENT

• This environment pertains to people and their culture.

Examples of forces under this type of external environment are
education, customs and traditions, religious affiliations,
perception,cultural values,demography,ethnic and racial
diversity
 THE MACROENVIRONMENT
POLITICO-LEGAL ENVIRONMENT

Politico
• Pertains to government while
• Legal
• Pertains to law. This environment includes legislation
regulating business, legal restrictions, elections, political
stability, presidency, peace and order situations, armed forces
etc.
 THE MACRO ENVIRONMENT
TECHNOLOGICAL ENVIRONMENT

• This refers to the advancement of science and technology and

includes new inventions or discoveries, technological
breakthroughs, research and development
 THE MACRO ENVIRONMENT
NATURAL ENVIRONMENT

• This includes typhoon, earthquakes, the el nino, climate

change, global warming, ozone depletion, deforestration,
preservation and extinction of animal species
 SWOT ANALYSIS
STRENGTH

• Something that a company is good at doing. It is a quality that

produces a competitive advantage for the company. A characteristic is
said to be a strength if it belongs to the internal environment is
expected to affect company operations in a positive manner.
 SWOT ANALYSIS
WEAKNESSES

• The opposite of strength. Something that accompany lacks.

• It is a quality That puts the company at a disadvantage.
• A quality is said to be a weakness if it belongs to the internal
environment and has a detrimental effect on company operations.
 SWOT ANALYSIS
OPPORTUNITY

• A factor in the external environment that is expected to work

favorably towards company operations.
 SWOT ANALYSIS
THREAT

• A factor in the external environment that is expected to have a

negative effect on company operations.
 THE 2 PART QUESTION FOR SWOT ANALYSIS

1. Is the factor within the control of the company or is it beyond the

• Company’s Control?
• If your answer is within, then it belongs to the internal environment. If
beyond, it is part of the external environment.
• 2. Is the factor expected to affect the company operations positively or
negatively? If positively, it may either be a strength or an opportunity. If
negatively, it can either be a threat or a weakness.
 COURSE WORK 1

• Using Relevant Examples Explain Any 10 entrepreneurial traits. 10 Marks

• Discuss Any 10 ENTREPRENEURIAL REWARDS 10 Marks
• Explain Any 10 Challenges of Being An Entrepreneur 10 marks
• Using relevant examples discuss any 10 roles of entrepreneurship in the economy
10 marks
• Explain with examples any 10 BARRIERS TO ENTREPRENEURSHIP. 10 marks