ENF123 Lecture 5

BBME/BAAIS/BMPR/BMIS YEAR 1
ENTREPRENEURSHIP FUNDAMENTALS
(ENF123)
COURSE LECTURER: MS FAITH KACHOKA
TITLE: SENIOR LECTURER
COMPILED BY: MS FAITH KACHOKA
SEMESTER: APRIL TO SEPTEMBER 2022
Unit Five: Government’s Role in
Entrepreneurship Development
THE CONCEPT OF ENTREPRENEURSHIP DEVELOPMENT
 Entrepreneur
o This is a person who is responsible for an entrepreneurship venture.
o Anyone can be taught to become an entrepreneur by undergoing the entrepreneurship development process.
◦ An entrepreneur discovers new business ideas and investment opportunities.
◦ An entrepreneur materialises those ideas and opportunities in the course of time; leading to the launch of new businesses which are skilfully
and effectively managed.
◦ These individual qualities and traits constitute entrepreneurship.
 Entrepreneurship
◦ Entrepreneurship is the dynamic process of developing something new with value based on creativity and innovation.
◦ It requires devotion of time and effort, taking on financial and other risks, and benefitting from the resulting monetary rewards.
◦ This kind of entrepreneurship needs to be developed in society for the overall economic development of a country.
 Entrepreneurship Development
• Entrepreneurship development means creating an entrepreneurship attitude in an individual through a careful search for prospective entrepreneurs and
promoting this attitude to make an individual a real entrepreneur.
• It is the means through which the knowledge and skills of entrepreneurs are enhanced through structured classroom-based learning, coaching and other
training programs.
• It deals with the study of entrepreneurial behaviour, business dynamics, and entrepreneurial development and expansion.
• Entrepreneurship development aims to achieve the following:
 It motivates individuals to identify new business ideas and investment opportunities under changing economic environments.
 It helps to transform ideas or opportunities into new business enterprises.
 It strengthens and increases the number of entrepreneurs.
 Ultimately it leads to the development of the industrial sector of the economy.
• Thus the concept of entrepreneurship development may be defined as follows:

 “Entrepreneurship development is a process through which entrepreneurial qualities are injected, with necessary motivational drives of
achievement, to transform business ideas or opportunities into enterprise and to manage uncertain and risky situations of business undertakings.”
• The above definition highlights the following express and implied features of entrepreneurship development:
 Features of Entrepreneurship Development

1. It is a process of searching for and training prospective entrepreneurs or existing ones to enhance their entrepreneurial qualities.
2. It is a process of training through which new ideas of business and investment opportunities are exposed to these prospective entrepreneurs, i.e. it
encourages innovation and evaluates growth potential of an enterprise.
3. It is a motivational tool for transforming ideas or opportunities into new business enterprises that perform better, achieve their goals and expand.
4. It boosts confidence among prospective entrepreneurs by providing counselling on management, marketing, finance, and other technical aspects of a
business enterprise.
5. It is an instrument for making an ordinary individual become a true entrepreneur by helping them to develop and manage their business better along with
the associated financial insecurities.
6. It is a continuous and on-going activity of both government and non-governmental organisations.
7. As a result of entrepreneurship development, the economy of a nation also improves.
 OBJECTIVES OF ENTREPRENEURSHIP DEVELOPMENT

• The definition and the features of entrepreneurship development outline its scope and nature.
• It is meant to support or aid the industrial and economic growth of a country.
• Hence the objectives of entrepreneurship development may be summarized as follows:
 To enhance entrepreneurial objectives and encourage more people to become entrepreneurs.

 To promote entrepreneurial qualities and traits among the youth through training and expert consulting.
 To search for and develop entrepreneurial opportunities and business ideas for potential entrepreneurs.
 To motivate and guide individuals to launch new business undertakings.
 To provide and conduct new programmes for stimulating new ventures in rural and urban areas.
 To provide managerial skills, marketing techniques and technical knowhow for prospective and existing entrepreneurs.
 To make available different kinds of project reports for new ventures.
 To provide information regarding different facilities, concessions, and schemes sponsored by governments, as well as other institutions for
promoting entrepreneurship.
 To promote and maintain an entrepreneurial culture, among different sections of society in particular, and throughout the nation in general.
 To promote the development of small and medium enterprises in different sectors of the economy.
 To generate employment and self-employment through entrepreneurial development and growth of small-scale industries.
 To contribute to the economic and industrial development of a country through first-generation entrepreneurs.
 To alleviate unemployment in an economy.
 To decrease economic stagnation and increase competition in the market.
• All these objectives of entrepreneurial development highlight the importance of entrepreneurial development in a national economy.
 The Entrepreneurship Development Process
 Learn about the Business Idea
 This is the starting point of entrepreneurship.
 Once a person has come up with a business idea, it must be evaluated to determine its commercial value.
 This requires knowledge about the business and its potential consumers which can be obtained through research.
 Thorough Evaluation
 Business ideas once developed must be thoroughly evaluated.
 This can be done by considering the following points:
• Is the idea or opportunity worth investing in?
• What are the product’s requirements?
• Is it a feasible idea based on its cost?
• What are the competitive advantages?
• What are the associated risks?
• Is it aligned to business goals and objectives?
• Do I have the skills required to manage this process/business?
 Business Plan
 After developing an idea and identifying the opportunity for the commercial value/success to be gained from that idea, a comprehensive business plan must
be developed to ensure that the opportunity in question is maximized.
 This is a vital step in the entrepreneurship development process.
 The business plan serves as the basis and benchmark for the business going forward.
 It monitors the business’ progress, showing whether it is on track.
 A good business plan must state certain key points including:
• Vision
• Goals and objectives
• Capital investment
• The product itself
 Finding Resources
 The next step in the process is to locate the resources that will be required for the business venture.
 These include financial and human resources.
 May require a search for potential investors and a staff recruitment plan.
 Framing out the Management Structure
 This is another crucial part of the entrepreneurship development process.
 The hierarchy of the firm must be carved out.
 This helps with decision-making, delegation, problem-solving, etc.
 Plan the Future
 The future of the business must be planned for and clearly outlined.
 Actual data must be weighed against projected scenarios to provide an idea of how the business is faring.
 Based on the stability of the business; growth strategies can be considered.
 Key Entrepreneurial Traits

 Self confidence
 Risk-taking ability
 Decision-making ability
 Competitiveness
 Intelligence Quotient
 Visionary
 Patience
 Emotionally intelligent
 Leadership ability
 Technical competence
 Managerial ability
 Conflict resolution ability
 Organizational skills
 Motivational/Inspirational
 Creative
 Reality-oriented
 Key Entrepreneurial Skills
 Confidence to delegate tasks
 Effective time management
 Visualizing aims and success
 Listen well
 Communicate effectively
 Understand the importance of time
 Seek help when needed
 Give back (Philanthropy)
 Recommendations for Entrepreneurship Development

 Formation of entrepreneurial activity must be adopted as policy by governments.
 Governments must ensure that their entrepreneurship development policies are broadly focused on all sectors of their economies and all regions of their
countries.
 Allow for the natural growth of existing, home grown industries.
 Governments must provide leadership but responsibility and ownership of the business development policies must be delegated to the local and regional
authorities and agencies for implementation.
 Policies must address the needs of businesses and their owners.
END OF UNIT

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BBME/BAAIS/BMPR/BMIS YEAR 1

• Thus the concept of entrepreneurship development may be defined as follows:

 Features of Entrepreneurship Development

 OBJECTIVES OF ENTREPRENEURSHIP DEVELOPMENT

 To enhance entrepreneurial objectives and encourage more people to become entrepreneurs.

 Key Entrepreneurial Traits

 Recommendations for Entrepreneurship Development

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