Table of contents

Introduction

Question 1

1.1 Discuss the characteristics of entrepreneurs.

What is an entrepreneur?

Characteristics of entrepreneur:

 Commitment to the enterprise

 Willingness to take risks
 Creativity
 Motivation and positive attitude

 Sound relationship
 Persistence
 Involvement in the business

Conclusion

1.2 Discusses the importance of entrepreneurial ventures to communities and the

economy.

Entrepreneurial ventures

 Job creation
 Economic diversification
 Economic democratisation
 Exports and balance of payments
 Benefits from competition
 An outlet for innovation and entrepreneurial activity
 Support to larger industries – subcontracting business

Conclusion
Question 2

Question 3

Introduction

In business history worldwide, over the years, a number of small businesses

constantly emerge from the turbulent business environment. Generally, the focus is
on small businesses and their owners, termed entrepreneurs, who display a
somewhat common set of characteristics that distinguish them from other people.
Included in the notion of entrepreneurship are those employees who display
entrepreneurial characteristics within the organisations they serve (intrapreneurs).
This assignment is going to talk more about characteristics of entrepreneurs and
importance of entrepreneurial ventures.

QUESTION 1

1.2 Discuss the characteristics of entrepreneurs.

What is an entrepreneur?

Hisrich and Peters (2002) define entrepreneurship as “the process of creating

something new of value by devoting the necessary time and effort, assuring the
accompanying financial psychic and social risks, and receiving the resulting rewards
of monetary and personal satisfaction and independence”.

In simple wordings, one can define the entrepreneur as one who combines various
input factors in an innovative manner to generate value to the customer with the
hope that this value will exceed the cost of the input factors, thus generating superior
returns that result in the creation of wealth. To be up to the level, an entrepreneur
needs to possess some particular characteristics apart from being skilful, with the
necessary expertise and aptitude.

Characteristics of entrepreneur:

Commitment to the enterprise

The first characteristic is that entrepreneurs have determination and commitment to

the job that they have set themselves to do.. They are self disciplined and spend
long hours working to complete the job. Simply stated they become totally immersed
in their work even if it requires personal sacrifice on their part.

Willingness to take risks

Another important characteristic of an entrepreneur is his ability to take calculated

risks. There will always be stress, uncertainty, and a variety of different risks that
must be dealt with on a routine basis. He will often have to decide between different
solutions that could easily contradict each other.

Creativity

A creative person/entrepreneur will be able to quickly find a possible solution and at

the same time be able to conceptualise the answer. He has the ability to learn
quickly and is willing to keep up with new developments and make changes that he
feels will be beneficial to the business and clients.

Motivation and positive attitude

Entrepreneurs are also motivated to excel. They set their goals and are not bothered
about what happens along the way as long as they meet the targets that have been
set.
A positive attitude is an essential part of the motivation. In most cases the
entrepreneur also has a good sense of humour and a realistic outlook on life.

Sound relationship
Having a good relationship with people inside or outside of the business is also
important. An entrepreneur must be able to mediate or arbitrate between people with
opposing views when the situation requires; organizing and planning large public
events and handling complaints for an organization or company; getting along well
with most people.

Persistence

Entrepreneurs are people who take action and control their own destinies. They are
often motivated by a spirit of independence and remain so despite drawbacks and
barriers. They have an enduring belief in themselves that gives them the capacity to
recover from serious defeat or disappointment.

Involvement in the business

An entrepreneur must have technical knowledge pertaining to the industry in which

he wishes to operate. He must be very alert to what is happening in his enterprise.
Moreover, he will be more likely to succeed if he can communicate effectively to his
audience; his suppliers, customers and employees.

Conclusion

In a conclusive note, it can be said that an entrepreneur is one who organises,

manages and assumes the risks if a business or enterprise. They have creative
personalities, are innovative and thrive on change.

1.3 Discusses the importance of entrepreneurial ventures to communities and the

economy.

Entrepreneurial ventures

Entrepreneurial ventures are being widely viewed as a key aspect of economic

dynamism which brings lots of benefits to a community. Entrepreneurship promotes
efficient mechanism of production like right allocation of capital, labour and
technology. Entrepreneurial ventures provide jobs, diversity and democratise the
economy, enable innovation, improve balance of payments through exports, among
others.

Job creation
Firstly, the owner manager creates self employment. Secondly, a number of
conventional jobs are created, having positive consequences on unemployment.
Thirdly, a lesser number of indirect jobs are created, for example, a small hotel
business further generates creation of a few jobs in supply industries- transportation,
agri-business and so on.

Economic diversification

Small firms reduce dependence of the economy on a few large sectors. They
increase the number and variety of economic pillars, thereby reducing vulnerability
resulting from natural or man made disasters.

Economic democratisation

Once dominated by a few traditional ‘actors’, the Mauritian economy is now

characterised by a variety of Small to Medium firms, which result in a more vibrant
economic and social climate. Government support to SMEs goes in the direction of
democratisation of the economy by empowering start-ups at the early stages so as
to increase their chances of survival.

Exports and balance of payments

Starting with import substitution, small firms soon saturate the local market and seek
export markets, while making good use of Trade Agreements between neighbouring
countries or otherwise, for example, SADEC and COMESA.

Exports bring in sought for foreign currency and improve balance of payments. They
also force an improvement in product and service quality from the need to be more
competitive and to meet international standards.

Benefits from competition

A market dominated by a few firms result in price setting rather than an equilibrium
market price. This is disadvantageous both for customers and producers. Lack of
competition leads to complacency and increased costs of production thereby
reducing competitiveness, especially for export.

A large number of competitors ensure that customers have a choice and that there is
efficiency in the economy.
An outlet for innovation and entrepreneurial activity

Small businesses are often a way to materialise innovations. Competition further

‘pushes’ innovations on the market.

Small firms support innovation and innovators by providing the fertile grounds to
grow innovation and the vehicle to test new ideas and offer them in the market place.

Support to larger industries – subcontracting business

Moreover, a symbiotic relationship exists between small and large firms. The former
supplies the latter with component parts, consultancy services (e.g. accounting),
distribution networks (small retail shops) and casual labour. Such a sub-contracting
relationship was largely responsible for the success of the Textile Industry in
Mauritius.

Obviously, without an ample ‘supply’ of small firms, there can be no future for large
firms. Some SMEs of today will grow in tomorrow’s large firms, while some large
firms will inevitably exit the marketplace, for example, through bankruptcy.

Conclusion

A number of other positive economic and social consequences arise from

entrepreneurship and small firms. For example, if small firms did not exist, a number
of market segments would remain unattended.

Furthermore, social aspects of entrepreneurship include poverty alleviation, Social

cohesion and social peace.
QUESTION 2

2.1 Identify an entrepreneurial venture that you consider to have great potential.
Describe clearly how you identified and evaluated the feasibility and viability of this
opportunity.

What is meant by feasibility and viability?

Feasibility literally means whether some idea will work or not. It knows before hand
whether there exists a sizeable market for the proposed product/service, what would
be the investment requirements and where to get the finding from whether and
wherefrom the necessary technical know-how to convert the idea into tangible
product may be available and so on. In other words, feasibility study involves an
examination of the operations, financial, HR and marketing aspects of a business on
an ex ante.

Executive summary

The idea is to create a business which will bridge the gap between the unattainable
‘luxuries’ of the rich and the affordability of the working class people. DOMAINE
MAEBO is a resort that groups two major public attractions namely a sport resort and
spas with the aim of relaxing people. This estate, largely contrasts itself when
compared with others in the sense that it will be more of a familiar resort, its setting and
its embellishments just ensure that the customer feels at home and relaxed as soon as
he/she crosses the threshold of the estate. Because the people in general are looking
for anti-stressful environment, the Domain will not only provide them with activities
(recreational and relaxation) but they will also get advice from experts as to how they
can improve their physical and mental well-beings. It is no secret that much of the
diseases that affect people have a common denominator: stress. If we are able to
solve/alleviate/remove the stress from a person, then we deemed that we have
completed our engagement/’virtual agreement’ with that customer.
Business Description

DOMAINE MAEBO will be a mixture of sport resort, together combining an Estate

(French equivalent to “Domaine”) and a Destination Spa. This means
that in only one place, the customer will have everything ranging from
sporting/leisure activities at his/her disposal to restaurants and spas. While
being also a destination spa, Domaine MAEBO also offers facilities such as
manicure, pedicure, facial, skin exfoliation, body treatment, waxing and so on.
The spa uses only natural product such as ayurvedic.

Customer Profile
Our market target is the Mauritian population at large. Since our state comprises
of a sport resort, destination spa, we do not have the trauma of not catering for a
specific age group. For instance, even people above the 40s can still make use of the
sport resort (meditation/ relaxation), and destination spa for massage.

Competitive position within the target market

Since we are coming with a new concept, we do not have direct competitors, apart from
the individual resort. But none of them offers the same services as we do.

Company Vision, Mission and Objectives

Company vision:

Through our activities at the resort, we try to make people feel good about themselves
both physically and mentally.

Provide services to those who want to enjoy some recreational activities and also for
those who want to get rid of their stress.

Provide services to those who seek natural means to help alleviate their bodily aches.

Provide employment and other services for women in shelters and more generally for
those struggling financially.
2.2 Prepare a business plan for the entrepreneurial venture identified in 2.1. Your
business plan must contain all the required elements of a business plan.

BUSINESS PLAN FOR DOMAINE MAEBO

DETAILS OF ENTERPRISE

TYPES OF ENTERPRISE:

Providing customers with activities such as recreational, relaxation and spas

ADDRESS OF ENTERPRISE:

17, Le Pouce Mountain Road, Saint Pierre

Tel: (230) 433 65478

Fax: (230) 433 65479

OWNER:

Nalini Lingaloo

17, Le Pouce Mountain Road, Saint Pierre

Tel: (230) 433 65478

BANK:

State Bank of Mauritius

Royal Road, Saint Pierre

Tel: (230) 230 60789

Fax: (230) 230 41007

ATTORNEYS:

MICKEY AND MOUSE

Address: Heart Street, Verdun, Saint Pierre

Tel: (230) 230 9999

Fax: (230) 230 6666

AUDITORS:

CINDERELLA AND SNOW-WHITE

Address: Big Bang Street, Saint Pierre

Tel: (230) 201 22550

Fax: (230) 201 22551

DATE:

01 July 2010

PURPOSE OF ENTERPRISE

The purpose of the enterprise is to provide the following services to its customers:

Provide recreational activities to people

Inform people about the good way to take proper care of their health

Relaxation and meditation

EXECUTIVE SUMMARY

DOMAINE MAEBO is a resort that groups two major public attractions namely a sport
resort and spas with the aim of relaxing people. The business will be located at the foot
of the LE POUCE MOUNTAIN, land owned by the sole proprietor: Nalini Lingaloo.
DOMAINE MAEBO will be funded by an initial investment of Rs 300 000. The enterprise
will be managed by Nalini Lingaloo only in the beginning and will later recruit new
managers if the business expands. For more information on the owner, refer to
Addendum A.

COMPANY MISSION:

The goal of DOMAINE MAEBO is to provide people with all the facilities under one roof.
Therefore customers will not have to leave one place for another just to enjoy one
particular activity. Also, as a destination spa, customers can also enjoy the panoramic
view at the estate, its fresh air, and enthusiastically indulge in sport activities to reap
maximum health benefits. Nalini Lingaloo is studying all the motivational factors so that
the employees give all the best to meet the customers’ requirements.

COMPANY OBJECTIVE:

 Have the resort known worldwide for both its effectiveness and standards.
 Increase the number of customers every four months
 Help eradicate poverty in the vicinity by employing as much people.
 To achieve a turnover of 1million in the second year of operation
 The business requires a total starting up capital of Rs250 000 which will be financed
by loans, personal savings.

The loan will be used:

 to cover the installation costs and acquire necessary equipments

 pay staff for four months
 pay advertising cost

BUSINESS INFORMATION:

DOMAINE MAEBO will be a mixture of sport resort, together combining an Estate

(French equivalent to “Domaine”) and a Destination Spa. While being also a
destination spa, Domaine MAEBO also offers facilities such as manicure,
pedicure, facial, skin exfoliation, body treatment, waxing and so on. The spa
uses only natural product such as ayurvedic. Necessaries are being made so
that the business starts operation by the end of November 2010.

Business description

The business hours will depend mostly on appointments during week days and
will normally start as from 8.30 to unknown hours depending on our customers
during week ends and holidays. Prices will be based normally on the number of
hours that a customer wants to enjoy our services and activities.

PERSONAL AND ORGANISATION:

MARKET INFORMATION:

The Mauritian population is looking for relaxation and is very nature wise.
Domaine Maebo is offering them with the only opportunity of being on an estate
surrounded by nature and enjoying a relaxing moment. Despite the local
competitors; mostly involved in the spa business, there are none offering the
same services and activities.

MARKET ANALYSIS:

Domaine Maebo’s aim is to provide leisure time, good health to those seeking
physical and mental well-being. Our market target is the Mauritian population at
large. Since our state comprises of sport resort and destination spa, we do not
have the trauma of not catering for a specific age group.

MARKET RESEARCH:

Domaine Maebo is positioning itself as the premier resort offering leisure,

relaxation and meditation, sight seeing and spa in Mauritius. Nalini has
forecasted 40% market share.

COMPETITORS:
Since we are coming with a new concept, we do not have direct competitors, apart from
the local small business offering one of the services mainly spa. But none of them offers
the same treatment as us. It should be noted that we are mostly involved in products
free of chemical substances and mostly ayurvedic ones.

Competitors Strength

 Already settle
 Already known among customers

Competitors’ weaknesses

 Lots of delays before looking after customers

 Very often unprofessional owners

My enterprise’s business strengths

 Providing high quality services

 Aggressive advertising
 Own energy production

My enterprise’s business weaknesses

 Staffs need training

 Not yet recognised in the country

Advantages of location
Is undergoing great development all around and “LE POUCE MOUTAIN” itself is a
touristic attraction and a natural reserve of Mauritius.

QUESTION 3

Generating the business idea is regarded by many as the most critical stage in
entrepreneurial activity. With regards to this statement, discuss the ways in which
business ideas can be generated. Use examples to enhance your discussion.

The identification of business ideas is a creative process. The creative abilities of

prospective entrepreneur can be improved in various ways, such as thinking
unconventionally or viewing a matter from another person’s perspective. Entrepreneur
must see that their business ideas stand out from other competitive products or services
in some way. This essay is going to identify some ways in which business ideas can be
generated.

Personal experience

Personal experience can take place both at home and at work. It could be product or a
service which has not brought the expected satisfaction in a person. As a matter of fact,
the person starts to think of a better way to get the needed satisfaction he was looking
for in the product and starts thinking of solutions to improve it. If the expecting result has
been reached, the person can then open his own business and provide the same
service or product with some modification to the public.

Incidental discovery

Serendipity means that a desirable discovery is made fortuitously. This means that
someone stumbles upon a useful idea during the course of the day and that the idea
shows lots of benefits and profits to the person if the public could get access to it in real.
This could be an incidental change to a recipe which leads to a dish with new, exciting
taste.