ENTERPRENEURSHIP. Session objectives Define entrepreneurship and intrapreneurship Explain the entrepreneurship process Validate business ideas to ensure

ENTERPRENEURSHIP

Session objectives

Define entrepreneurship and intrapreneurship

Explain the entrepreneurship processValidate business ideas to ensure that

they are opportunitiesIdentify different ways of financing

businessIdentify the requirements for starting new

business ideas for the cooperatives

DEFINING ENTREPRNEUSHIP

Entrepreneurship is creating and building something of value from practically nothing.

It is the process of creating or seizing an opportunity and pursuing it regardless of the resources currently controlled.

It involves the definition, creation, and distribution of value and benefits to individuals, groups, organization, and society.

A dynamic process of creating incremental wealth

Creation of wealth by individuals who assume major risks in terms of equity and/or career, commitment of providing value for some products

DEFINING ENTREPRNEUSHIP (cont..)

The process of taking or bearing uninsurable risks in buying and selling good and services

Process of combining factors of production or resources such that wealth is created

Creating and building something of value from practically nothing


Pursuing new opportunities without regard to resources currently controlled

The process of creating new organisation


An innovative process that involves bringing new combinations into the production process such that:New products or services are offeredNew methods or technology is appliedNew markets are targeted or openedNew sources of supply and raw materials are

usedNew forms of organisations are formed


The process of creating something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychological and social risk, and receiving the necessary reward of monetary and personal satisfaction

Entrepreneurship Entrepreneurship It also requires a willingness to take

calculated risks – both personal and financial – and then doing everything possible to influence the odds.

Basic aspects of being an entrepreneur

Entrepreneurship involves the creation process

creating something new of value

Entrepreneurship requires devotion of the necessary time and effort

In order to create something new and make it operational

Basic aspects of being an entrepreneur (cont..)

Entrepreneurship means assuming the necessary risks:

Financial psychological social etc

Basic aspects of being an entrepreneur (cont..)

Reward for being an entrepreneur:IndependencePersonal satisfactionFinancial

Is it a Get-Rich Is it a Get-Rich Quick Plan?Quick Plan?

Entrepreneurship Entrepreneurship

Entrepreneurship is very rarely a get-rich-quick proposition.

Rather, it is one of building long term value.

This leads to long term cash flow streams.

Entrepreneurship is a human creative act.It involves using personal energy to

initiate and build an enterprise.

Entrepreneurship Entrepreneurship It also requires a willingness to take

calculated risks – both personal and financial – and then doing everything possible to influence the odds.

Myths about Entrepreneurs

Myth1- Entrepreneurs are born, not madeMyth2- Anyone can start a businessMyth3- Entrepreneurs are gamblersMyth4- Entrepreneurs want the whole show

to themselvesMyth5- Entrepreneurs are their own bosses

and completely independentMyth6- Entrepreneurs work longer and

harder than managers in big companies


Myth7- Entrepreneurs experience a great deal of stress and pay a high price

Myth8- Starting a business is risky and often ends in failure

Myth9- Money is the most important start-up ingredient

Myth10- Entrepreneurs should be young and energetic

Myth11- Entrepreneurs are motivated solely by the quest for the almighty dollar


Myth12- Entrepreneurs seek power and control over others

Myth13- If an entrepreneur is talented, success will happen in a year or

twoMyth14- Any entrepreneur with a good

idea can raise venture capitalMyth15- If an entrepreneur has enough

startup capital, he or she can’t miss

INTRAPREPNEURSHIP

DEFINING INTRAPREPNEURSHIP

The practice of entrepreneurship within the confines of the organisation

Creating something new and of value within the confines of the organisation

Thrives in organisations with an entrepreneurial culture

Intrapreneurial culture

Intrapreneurial culture:Employees with talents to act with

freedom to take initiatives or try out new ideas as if they were running their own business

Differences between entrepreneurship and entrepreneurship

IntrapreneurshipActs within the confines

of existing organizationChallenges the status

quo and fights to change the system from within

Has “free” resources found in the organisation

EntrepreneurshipActs outside the

organisationChallenges the status

quo outside the organisation

Has to look for his resources

Factors retarding intraprenuership

The cost of failure too high, the reward of success too low

• No space is provided for failure• No reward for innovative ideas

Inertia caused by established systems that no one is willing to changed “we have always done it like this’ If it

ain’t broken, don’t fix it” “changing now would be too much effort”

Factors retarding intraprenuership (cont…)

Hierarchy – the deeper the hierarchy, the more difficult it is to get permission for anything new. Support from top management

Recognition that entrepreneurship culture needs to be compatible with the overall organizational culture

Communication system within the organization is strong so that entrepreneurs within the company can be heard

Characteristics of successful entrepreneurs

Research has shown that certain traits seem to be

associated with entrepreneurs

Who are entrepreneurs?

Are opportunity driven, not resource drivenManagers ask: “given the resources under my control,

what can I achieve?”Entrepreneurs ask: “Given what I want to achieve, what

resources do I need to acquire?”Good as seeing pattern changes within

the environment

Who are entrepreneurs? (cont…)

“The reasonable man adopts him/herself to the world: the unreasonable one persist in trying to adapt the world to him/herself”

The entrepreneur is the unreasonable man/woman who is motivated by the dream of things that conventional wisdom says can’t, won’t or shouldn’t be

Entrepreneurs have therefore stubborn perseverance


Stand up to ridiculeStand up to failure, good at failure but

See failure as a temporary setback and an opportunity to learn and do better next time

“success is the ability to go from failure to failure with no less of enthusiasm”


The two magic words of an entrepreneur “what if …?”

What if telephone didn’t have to be connected to each other with wires”

Constantly scanning the environment for opportunities


Entrepreneurs create their own future – get up , look up for circumstances they want, if they find them, make them”

Characteristics ( cont…)

A desire to achieve: The push to conquer problems, and give birth to a successful venture. A strong urge to build

Hard work: It is often suggested that many entrepreneurs are workaholics.

Desire to work for themselves/need for independence Entrepreneurs like to work for themselves rather than working for an organization or any other individual. They may work for someone to gain the knowledge of the product or service that they may want to produce. They seldom are willing to submit to authority

Nurturing quality: Willing to take charge of, and watch over a venture until it can stand alone.

Acceptance of responsibility: Are morally, legally, and mentally accountable for their ventures. Some entrepreneurs may be driven more by altruism than by self-interest.

Reward orientation: Desire to achieve, work hard, and take responsibility, but also with a commensurate desire to be rewarded handsomely for their efforts; rewards can be in forms other than money, such as recognition and respect.

Optimism: Live by the philosophy that this is the best of times, and that anything is possible.

Orientation to excellence: Often desire to achieve something outstanding that they can be proud of.

Organization: Are good at bringing together the components (including people) of a venture.

Profit orientation: Want to make a profit; but the profit serves primarily as a meter to gauge their success and achievement.

Ingenious and resourceful, they are cunning, opportunistic, creative and non sentimental

Innovative, calculating inventor, over-optimistic promoter, organizational builder. These four terms are used to describe the characteristics which is not based on personality but on the type of opportunity the entrepreneur faces

Visionary – the entrepreneur ha an enthusiastic vision which is the driving force of the enterprise. This vision is supported by an interlocked collection of specific ideas not available to the market

Persistence and determination - this helps the entrepreneur to develop strategies to make the vision into a reality

Risk taker – calculated risks which includes assessment of costs, market/customer needs and persuading others to join and help

Additional Characteristic of successful entrepreneurs

CompetitiveHardworkingForcefulKnowledgeableNetworkingPersuasiveGood communicator

Takes initiativeIndependentProblem solverTime consciousLeadership traitsAdaptive to changeLikes people

Skills and competencies required for entrepreneurship

What skills are required of in entrepreneurshipTechnical skills

Someone in the business must possess the professional skill and knowledge to generate the company’s product or service.

The concept for what product or service the company will offer must become clear before the venture can succeed.

Business management skills

Personal entrepreneurial skills – disciplined, risk taker, innovative, change oriented, persistent, visionary etc

ENTERPRISE CULTURE

Enterprise culture

Culture is a pattern of share beliefs and values that provide the members of an organization with rules of behaviour or accepted norms for conducting their operations

It is the philosophies, ideologies, values, assumptions, beliefs, expectations, attitudes and norms that knit an organization or a community together and are shared by members

Enterprise culture (cont..)

Enterprise culture, therefore can be defined as a set of altitudes, values, and beliefs operating within a community or environment that lead both to the entering behaviour and aspiration towards self employment or venture creation

Research on enterprise culture

Research findings indicate that: Those who have parents or relative who

own small businesses are likely to become entrepreneurs than those without similar acquaintances

Those who have worked in small enterprises are more likely to establish such enterprises later

Research on enterprise culture

Those who work in organizations which allow hem greater deal of independence and freedom of operations under conditions of uncertainty are more likely to establish businesses than others

Those coming from a culture which supports individual small business ownership whether for religious purposes, ethical or moral reasons are more likely to establish businesses than others outside the culture

Components of an enterprise culture

1. Abundant positive role models of successful independent businesses

2. Ample opportunity for familiarization with small business tasks especially during youth

3. Network of independent businesses family contacts and acquaintances reinforcing familiarity and providing market entry opportunities

4. Provision of formal/informal knowledge and insight into the process of independent business management

5. Opportunity to practice entrepreneurial attributes reinforced by society culture during formative years

ENTREPRENEURIAL BEHAVIOUR THEORIES

Entrepreneurial behaviour theories

Entrepreneurial behaviour looks at activities, interactions, competences and feeling of entrepreneurs

There exist a number of schools of thought which view entrepreneurship from a fundamentally different perspective.

Such perspectives are:EconomicPsychologicalSocial Managerial

Economic theories perspective

Economic theories of entrepreneurship focus on the effects that economic environment has on entrepreneurial activities and what impact entrepreneurs have upon the economy

From the economic perspective, an entrepreneur is a person who brings together the resources or factors of production into combinations that make their value greater than before

Economic theories help in providing missing links in the economic environment that are necessary for business startup and survival

Economic perspective (cont…)

Proponents of economic theory believe that entrepreneurship and small business development is influenced by factors such as:Market structures and opportunities Investment climateGovernment restrictions or encouragement

An entrepreneur is seen as a person who specializes in taking judgmental decisions about the coordination of scarce resources (Casson, 1982)

Economic perspective (Cont..)

Classical economist like Keynes emphasis optimization of existing resources in order to reach equilibrium.

Here the entrepreneur is defined as:The stabilizing force that brings market forces

closer to an equilibrium He/she shifts economic resources out of an

area of lower risk/productivity to areas of higher productivity/greater yield

Here the entrepreneur is defined as:…

An entrepreneur is the person involved in allocating scarce resources in order to produce goods/services with utility, hence a forth factor of production he/she distributes and organizes resources

An entrepreneur is the stabilizing force which brings markets closer to equilibrium and which makes market forces work more smoothly

The entrepreneur is the person driven by profit motive (profit maximization and cost minimization) and gains socially and financially from economic activities.

Here the entrepreneur is defined as:…

Entrepreneurs create a dynamic disequilibrium in the economy as opposed to static equilibrium

This he does by creating innovations which introduce new combinations and production

Entrepreneurial activity is a destabilizing force that starts the process of creative destruction, the essence of economic development

Entrepreneurs are not manage who undertake routine activities on the basis of past experience without idea of change, rather they are risk takers in the area of uncertainty and engage in activities that have not been undertaken before

In summary, the economists see entrepreneurs as:

Risk takers or the bearer of uninsurable risks (Cantillon, 1755)

A combiner of resources or factors of production such that wealth is created (Say, 1832)

Innovators who bring new combinations into production process (Schumpeter, 1942)

Schumpeter saw entrepreneurship as the engine of economic development which resulted in new combinations (called an enterprise)

The new combinations may include:Introductions of new products or servicesIntroduction of new method s of

productionOpening on new marketsFinding new sources of supply of raw

materials or componentsProviding induction reorganizationNeoclassical economist view

Implications/comments on this theory

You can train entrepreneurs by enhancing their creativity and supporting innovating ideas

People can be trained to sharpen their decision making abilities to see and analyse opportunities creatively

SOCIOLOGICAL THEORIST PERSPECTIVEAccording the this perspective environmental factors

such as belief systems, cultural values, social structure for the basis of entrepreneurial behaviour

Studies by some sociologist indicate that the decision to become self employed is related to having association with another person who is a close relative

Social interactions provide potential entrepreneurs with: Market/market informationCreditSocial support

SOCIOLOGICAL THEORISTS PERSPECTIVE (cont..)

The sociological theories have been based on the premise that members of a given society generally adhere to system of structured roles which can encourage or discourage entrepreneurships.

Entrepreneurship activities will be high in those cultures where entrepreneurships is held in high esteem.


The social influence of entrepreneurship behaviour can be explained in terms of:

Family background - the general hypothesis is that those whose parents are self employed or business owners are significantly more like to become business owners themselves

Religion – research findings indicate that some particular religious persuasions tend to have entrepreneurial spirit. For example, Jews are commonly perceived as having an enterprising nature


Ethnicity – research indicates that some ethnic groups are more inclines to entrepreneurial activities than others

Education and training – research studies indicate that entrepreneurial activities can be enhances through educational and training programmes .Relevant training provides prerequisites for business ownership and helps in reducing business failure rates

Cultural values – some cultural values discourage/encourage entrepreneurship

Comments of this perspective:

It perpetrates the myth and stereotypes in society related to superiority and class system and are not healthiest for development

PYSCHOLOGICAL THEORISTS PERSPECTIVE

The psychological theories of entrepreneurship are based on traits and personality characteristics that are exhibited by successful entrepreneurs

The central focus of this perspective is that the entrepreneurs have unique values, attitudes and needs which drive them to business creation

People behave according to their values, and attitudes irrespective of the different situations they might be

PYSCHOLOGICAL THEORISTS PERSPECTIVE (cont..)The psychological school focuses on personality

factorsBelieve that entrepreneurs have unique values

and attitudes towards work and lifeThis propel the individual to behave in a certain

wayAccording to this theory, some people are more

likely to become entrepreneurs because of their mental attitude for independence or with dissatisfaction with operating under the direction of others

PYSCHOLOGICAL THEORISTS PERSPECTIVE (cont..)

Entrepreneurs, as other people acquire these values attitudes and needs as they grow up from:FamiliesSchoolsChurches Communities

These values are learned in the process of socialization into a culture.


Since values are leaned early in life ad are well established prior to adulthood, characteristics can only be reinforced in those who portray them or have them in latent (dormant, concealed) form

It would not be cost effective to try to develop them in people who do not possess them but to reinforce them in those who already have them

PYSCHOLOGICAL THEORISTS PERSPECTIVE (cont..)The major distinguishing features, or quality of

characters that have been widely explored within the psychological perspectives that make entrepreneurs different from others are: Need for achievement Locus of control Risk taking propensity Positive self image Initiative Independence Future orientation Goal setting Time bound planning Environmental searching


Extreme psychologist further suggests that:The entrepreneur has an ability, sixth sense

and instinct which is inbornThe entrepreneur portrays intuition, energy,

persistence and self-esteemEntrepreneurs according to this version are

born as they have natural abilities, training cannot influence in any way

Comments of this perspective:

It perpetrates the myth and stereotypes in society related to superiority and class system and are not healthiest for development

It simply says people are not equal and it would be difficult to organize training programmes suitable for all

It can give negative attitude towards young people who might not be lucky to possess the unique abilities and traits

MANAGEMENT PERSPECTIVE

This school emphasize organisation of resources in a systematic way to attain maximum profit

Entrepreneurs are therefore organizers of an economic resource venture

They organise, own, manage and assume risksEntrepreneurships is therefore a series of activists which

focus on the central function of managing a business such as production, planning, marketing, coordinating, controlling, evaluating and financing

Management perspective (cont..)

The managerial school therefore emphasizes on improving a persons capacity through developing his/her

AnalyticalRationalCause-effect relationshipAnother stand of management view

entrepreneurs as leaders on peopleThey have the capacity to adapt their styles in

order to get maximum out of people

Management perspective (cont..)

They view people as their greatest resource and realize that they cannot accomplish goals alone but must depend on other people and their skills

Training is therefore possible by knowing how to motivate, lead and direct people

Basic questions that people who follow this school of thought would be asking themselves are:What are my plans?What are my capabilities?What are my credentials? How do I get most from the people around me?

CONCLUSION

1. All these theories provide a useful insight in understanding and explaining entrepreneurship

2. It is possible that they can complement each other in developing a rich entrepreneurial programme

3. Pre- starters can benefit a lot form psychological, social and economic schools of thought

4. Start ups and on going entrepreneurs can benefit more from management school

Entrepreneurship Process

Is everybody who starts a business an entrepreneur?

Appreciating entrepreneurship

Right attitude: Positive – entrepreneurship can be a

way of lifeNot a get rich quick business

Be motivated to an entrepreneur

Entrepreneurship Process

Steps:Appreciating entrepreneurship Idea generationOpportunity assessmentBusiness planning RegistrationFinancing Start up

ENTREPRENEURIAL MOTIVATION

ENTREPRENERIAL MOTIVATION

.

ENTREPRENEURAIL MOTIVATION

Entrepreneurial motivation is affected by two main factors

internal motivating factorsExternal motivating factors

Internal motivation

Internal motivation is the inner drive you get as a result of desire to achieve a certain goal or fulfill some needs

The goals are the aspirations that define the base of inner drive of an entrepreneur

Internal factors affecting motivation

Self actualizationOne of the powerful motivators that form the base for

inner drive on an entrepreneur is self actualization. Usually a successful venture offers various form of reward in terms of benefits identity and prestige. Having achieved the basic human needs, entrepreneurs become more confident in their abilities to realize their capability of achieving more

Profit maximizationThe drive to maximize profits will make potential

entrepreneurs work harder, be more innovative and even venture into other enterprises

Internal factors affecting motivation (cont…)Desire to succeedThis is an aspiration to achieve success toward ones

welfare to maximize pleasure and happiness. This will give an entrepreneur public appreciation and recognition, especially if they have accomplished difficult tasks where others have failed

SurvivalAn entrepreneur has to face many challenges,

completion, internal and external forces. To succeed, entrepreneurs have to strive to overcome these obstacles. This sprit of survive sustains them through a challenging environment

Internal factors affecting motivation (cont…) Adventure This is a way of taking risks or challenges without knowing the end

result. This gives a potential entrepreneur an opportunity to explore and this helps and enhances his knowledge and innovativeness

Independence/self reliance An entrepreneur does not like being controlled by others. They have

their own original thoughts and ideas and generally do not conform to routine jobs and practices. To satisfy their needs they seek opportunities that provide independent hence become masters of their own activist and taking full responsibilities for their outcome

Power The desire to feel in total control of all situations

External motivation

What external factors would motivate me to start a business?

External motivation factors are those factors that expose you to the available public resources and facilities which would encourage you to start a business

External motivation factors

Credit facilitiesThese are the facilities which would help you to acquire

the necessary capital outlay to be able to set up an enterprise

This capital outlay will assist you to purchase raw materials, machinery, equipment and other inputs

Infrastructure Includes building, communication, information

technology, transport and other auxiliary services and utilities

Lack of adequate infrastructure creates physical constraint to you when implementing your ideas.

Access to business information This includes investment information, small

business development assistance and consultancy services, fairs and exhibitions

TrainingIn entrepreneurship, small business

management, business planning, services, Access to technology

Technology linkages through research institutionBusiness incubation services – to guide

growth

Access to marketsAccess to local markets though subcontracting,

international or regional markets through trade agreements e.g. AGOA, COMESA

Export and import incentive schemes:These are government schemes used to provide

concessions to you, when you are involved in the export or import activities. Concessions on taxes, customs and excise duties, speedy licensing with regard to export and importation of machinery equipment and raw materials by the government will reduce your operating costs if your are involved in import and export activities. This will reduce your costs of imports and encourage you to set up an enterprise or expand the existing one

Pricing policyThis is part of government policy which assists

or encourages you to produce and sell goods and services

It is important that a pricing system must take into account the total cost require to produce a good or services whereby you are able to recover production cost and be left with reasonable profit margins which could de used to improve your business

Export processing zones (EPZ) This is a government scheme to assist investors

manufacture internally competitive goods aimed entirely for export markets

You as a local invest will benefit from not paying heavy freight costs, additional fees on insurance in transit, no delays form lengthy shipping durations when you purchase from EPZ

If you invest in the EPZ you will benefit form exemption form export earning, raw materials, capital transactions, inputs relating to manufacturing activities

Idea generation – sources of business ideas

Vocational training and experienceHobbiesThrough networking, talking to bankers,

sales people, peersObserving the environment – the

unexpected, process needs, change in technology, demographic changes, law changes

Shows, exhibitions, fairsBrainstorming in groups or communityNewspapers and magazine – from special features ( e.g.

on value addition), to tenders, adverts, etc SurveyTalking to successful business people - they can advise

you on certain businesses that are profitableTalking to potential customers - one can get to know

their preferences for certain products or services

Business opportunity

Not all ideas are opportunitiesAn opportnity is an attractive project idea

which an entrepreneur accepts for investment on the basis of what he knows about the possible success of the project.

Characteristics of a good business opportunity

A business idea will be a business opportunity if it has the following characteristics:

DemandThere is a good market scope for the

product – the available products are not enough to everybody or its not what the customers want – there is a gap in the market

Good return on investment – what is the expected return on investment, when are you likely to break even

Availability of inputs – raw materials, technology, labour

Skill required available – especially specialized skills

Political and legal framework

Opportunity assessment/validating an idea

Purpose:To assess whether an idea is feasible

(workable) and viable (give the owner good returns)

Validation process

This requires some sort of feasibility studes which will look at four things:

Market Your strengths Profitability Environment

The market

Is there a marketIs there a need that needs to be fulfilledDo you understand the customersWhat is the industry trends

Your strengths

Do you have: The required skills and appropriate

technologyAn entry strategyOrganizational plan (Technical and

management)Enough capital to finance the business

Profitability

How profitable is the businessHow long will it take to break even, can

you wait that longWhat are the expected risks

The environment

Evaluate the environment in terms of:TechnologyResource availableGovernment policy and laws InfrastructureMarket conditionsCulturecompetition Economic assessmentBusiness trends

Business Planning

“Failing to plan is planning to fail”

Business plan – what is it?

A written document with specific procedures for achieving results within a specified period of time

It determines what a a business will is, will be and should be

It is a document which summarizes a business opportunity ( why the opportunity exists and why the management team has what it takes to achieve it)

Business planning (cont…)

It defines and articulates how the management team will seize and execute the opportunity identified

It specifies procedures for achieving objectives/results within a specified period of time

It states:

What will be done, how it will be done, by who the work will be performed, under what time constraints

It is a document which defines the most desirable, most timely, least hazardous route to a given destination

Why plan

To raise capital – to convince investors that the new venture:Has an opportunityHas an entrepreneurial talentHas management talent to exploit the opportunityHas rational and coherent and believable

programme for achieving revenue and expenses targets on time

Why plan

As a means for guiding business growthto understand growthto guide growthit is a flight stimulatorgives confidence in decision makinghelps in redefining strategy and in making

difficult decisionsClaries the venture financial requirements

Why plan

Save management timeEnsures management and market

opportunities are not missedProvide for effective utilization of firms

resourcesEncompasses strategies for carrying out

decisionsProvides systematic feedback as a means

of measuring results

Why plan (cont…

Analyse the impact of competitionTrack changes in customers lifestyles,

wants and needsAid in decision making

Business plan outline

Phase 1: the industry the company, products or services

Phase 2: marketing research, analysis and marketing planMarketing research and analysis – customers,

market size, trends, competition, estimated market share

Marketing plan – overall marketing strategy, pricing strategies, sales tactics, advertising and promotion programs, distribution plan

Business plan outline ( cont…)

Phase 3: operational analysis and organizational planDesigner and development plans Manufacturing and operational plans

( geographical location, facilities and capacity improvement, strategy and plans

The management team ( organizational structure, key personnel, compensation, incentives, support advisors


Phase 4: financial analysis and planThe economics of the business – gross and

operating margins, profit potential, fixed and variable costs

Financial plan –pro forma income statements balance sheet and cash flow, breakeven analysis

Proposed company financing – desired, sources and uses


Phase 5: Executive summary Summary description of the businessThe opportunity and entry strategyTarget market and sales projectionCompetitive advantageEconomics and profit potentialThe teamFinancial planOverall schedule, critical risks and assumptions

Entrepreneurship financing

Purpose of financingTypes of financeSources of funds Accessing fundsUtilization of funds

Purpose of financing

To start a new businessTo expand a existing businessTo meet an emergency situationTo meet normal operating costs

Types of finances required

Long term finances usually for buying fixed assets

Short time finances for buying stocks, meeting operational expenses, repairs etc

Sources of financing

Sale of personal assetsSavingsProfits that is put back into the businessDonation from friends and relativesTrade creditMortgageHire purchase

Bank loans:

Overdraft

Loans – secured or unsecured

Specialized loans ( for specific sector)

Government and donor funding

What determines which source to go for?

PurposeAmountRepayment Terms and conditionsSecurityAvailabilitycosts

Getting started

Meeting all legal requirementsRegistrationIdentification and recruitment of staffCreating commitment and buy insOpening bank account

Documents

ENTERPRENEURSHIP. Session objectives Define entrepreneurship and intrapreneurship Explain the entrepreneurship process Validate business ideas to ensure