Always analyse ideas carefully before finally selecting which ones to implement. If you have chosen to form a sole proprietorship, can you afford the unlimited personal liability? Entrepreneurs have the ability to organize activities and utilize manpower in order to put them to productive use. Entrepreneurial ventures differ from small businesses in these ways: Amount of wealth creation - rather than simply generating an, income stream that replaces traditional employment, a successful, entrepreneurial venture creates substantial wealth, typically in. The concept of entrepreneurship became clear due to the researches scientists like McClelland(1969) who stressed need for achievement motive, Schumpeter( ) who prioritized new combinations of means of production which there occurs disequilibrium, Cantillon ( ) who emphasized the functions of risk taking and uncertainty bearing, Drucker who stressed on systematic innovation consisting purposeful and organized search for changes among other scholars. They are also known as the perspectives of entrepreneurship. Prioritize tasks according to importance rather than urgency. Do you regard yourself as an idea person instead of a detail person? Cultural change can be caused the environment inventions and other internal influences and contact with other cultures. -Large number of incentives,concessions,grants and other benefits are offered to both small scale and large scale entrepreneurs to promote entrepreneurial growth and thus improve economic growth. They then brings together the necessary factors of production to exploit these opportunities. Death of a shareholder does not affect its operations. 6)Innovative Skill: An entrepreneur has to evaluate changes in the tastes and preferences of customers,and must have the ability to change and create new opportunities according to that. They therefore make the environment very untidy and unhealthy especially in towns. Its also referred to as the purchases day book. These transactions are recorded in the books of account in order to aid in preparation of financial statements at the end of the year. To make things happen. Activities carried out an organisation to achieve its objectives. This is investing all intellectual capital into logical or analytical thinking the step-by-step approach which excludes imagination and therefore creativity. Have you developed a complete business plan for your company? It facilitates long term planning within the business. The entrepreneur incorporates shareholders incase; The entrepreneur as the person in charge of coming up with the organizational structure. Real demand i.e.
E.g. Business ideas can also be generated through developing personal hobbies and discussions with friends. Are you willing to seek outside help? If you have chosen to form a partnership, have you determined how a partner can leave the business? their business ie they are not ambitious. Ethics also deals with moral ability and obligations. The repayment period is normally one year. ->An Entrepreneur brings in overall changes through innovation with a view to attaining social good. Inventories are very, closely controlled to keep investment in them just, * Aging A period of retrenchment as competitive industries, take away or eliminate markets. He mobilizes resources needed to start and run a business i.e finances, raw materials, human effort among others. Effectiveness: The technology should be judged how well it fits in with the objectives of the user. Efficiency of use of resources and capital can be determined. Have you created specific tactics to implement your companys strategy in the marketplace? If you need to achieve you select goals which will accomplish the need. Ethics concerns the rules and principles that define right and wrong good and bad conduct. Time management is critical to the achievement of organization goals. 9)Effective Communication: An entrepreneur should be able to communicate his ideas,messages and information effectively. To close this gap, funds were provided ILO Geneva in 1996, to develop a training package for TIVET Institutions; that included entrepreneurship education and business skills. The entrepreneurs can sell the goods and use the proceeds to pay off the creditor on the due date. Knowledge can be acquired through reading,but skill can be obtained only through practice. An entrepreneur should maintain a sound system of accounting records as this would aid in determining whether the business is making profit or a loss. For example, it would be very difficult for an employee to uphold business ethics if the management mistreats him/her. Much of your creative activity is probably motivated the admiration your creations inspire in others. Start small . Click here An entrepreneur must endeavour to create awareness and interest to customers about the products that his/her business deals with. Recording business transactions in the books of accounts. To achieve this, entrepreneurs must have patience, ability to convince others and a strong conviction that their job is going to be successful. This is a misconception based on the assumption that there is an absolute standard for judging moral conduct. Contribution of Entrepreneurship to National Development. Motivation can be viewed better looking at factors which help sustain the quality or intensity of the manifested behaviour. Today, with marketing more integrated into organisations and with a wider variety of products and markets, some authors have attempted to extend its usefulness proposing other P, such as people, process and physical evidence. Information and Communication Technology is an umbrella term that includes any communication device or application. i)Economic Factors:The economic factors are. The born entrepreneurs inherit the entrepreneurial behaviour from their parents and grandparents while made entrepreneurs acquire entrepreneurial behaviour from the behaviour in which they live in. They gain their customers through prior relations or personal contacts. They tend to be very competitive. These practices include: Ethics ensures that the employer does not violate the rights of employees especially as laid out in terms and conditions of employment. These types of entrepreneurs exhibit the following characteristics: Egoistic entrepreneurs venture into business not only because there exists a business opening but because they would also like to satisfy their ego. Ethics is simply a matter of compliance with laws and regulations, Inability to distinguish activities at work and at home. 1)Economic activity: Modern economists considers entrepreneurship as an economic activity as it involves creation and operation of an enterprise. Have you defined the core values that will guide your business? The entrepreneur requires effective communication skills for the following reasons: The human resources are the most difficult to obtain, the most expensive to maintain and the hardest to maintain in a business enterprise. The second stage of small business in the small business life cycle is the growth period. Agriculture Technology Development Centers, Kenya Industrial Research and Development Institute ( KIRDI). Below is a suggested approach that can be followed: Define problem, target population, select sample, define survey instruments, collect data, Factors to consider when starting a small enterprise. A small business may use the television as a tool for sourcing technological information, new products/services, market trends and general information that will assist the entrepreneur to run his business. She pays them a travel allowance in addition to their monthly salaries. single business permit, Registration with relevant government department e.g. Businesses have a duty to obey the laws of the countries in which they operate and also to fulfil their contracts. This makes it easier to maintain them and replace them wwhen necessary. References are a must, and should be checked before making a final decision. It keeps a record of persons from whom a business has purchased on credit. Howhas Mary created employment for young people? Topic 9: Starting a small business Businesses should devise proper ways of disposing their gabbage, such waste pollutes the environment when disposed carelessly and it may breed flies especially during rainy seasons. As financial statements have been worked out, it is necessary to compare the relationship between items in the balance sheet and those in the profit and loss account. 6)Guarding of Business Secrets(Same point in Characteristics of an Entrepreneur), 7)Capacity to interact with people/Ability to maintain human relations(Same point in Characteristics of an Entrepreneur). Need to challenge custom, routine and traditions of the organization. This sub-module unit discusses the concept of entrepreneurial culture and the factors that inhibit entrepreneurial development. Customers tastes and needs are continually changing. INFORMATION COMMUNICATIONTECHNOLOGY (ICT) IN A BUSINESS. An entrepreneur should avoid executive stress because it hampers creativity. A business can utilise ICT in pursuit of its objectives. An entrepreneur does not fear failure but learns from it. It helps create good public relations of image for an organization. This sub-module unit introduces the concept of entrepreneurship and its importance in the promotion of the national development of a country and the differences between self and salaried employment. Be aware of occupational health and safety (OH&S) issues and have risk management policies and processes in place. controlling keys who should keep them, use of designated entry and exit points, signing in and out of employees etc. Have you developed a procedure for documenting employees performances in case you must fire them? Self-confidence is concerned with how a person feels about his ability. working on the problem or opportunity in a different environment. dealing fairly honestly and responsibly with his employees and other stakeholders. As any small business owner can attest to, the stages of business are necessary and a normal part of the small business life cycle. If you have chosen to form a corporation, are you willing to tolerate the double taxation of this form of ownership? Meeting the required environmental standards.