entrepreneurship development workbook for learners

8/12/2019 Entrepreneurship Development Workbook for Learners

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ENTREPRENUERSHIP DEVELOPMENT

WORKBOOK FOR LEARNERS


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MODULE ONEMODULE ONEMODULE ONEMODULE ONE

1.01.01.01.0 Concept of EntrepreneurshipConcept of EntrepreneurshipConcept of EntrepreneurshipConcept of Entrepreneurship

Session Duration : 60 minutes

Introduction

Since long, entrepreneurship has been recognized as an essential ingredient ofeconomic development. The manner in which it has been exploited in the western

societies has varied from time-to-time to suit the changing ethos of socio-economic reality. From early centuries (16

th to 19

th) the definition of

entrepreneurship has changed from time-to-time. In France, the term entrepreneurwas used in the early days for army leaders. Later, architects and builders ofroads and bridges were called entrepreneurs. In the 19

th it was applied to

businessmen/tradesmen who bought and sold goods at a profit. |It was in the 20th

century that an entrepreneur was identified as the person who identifies anopportunity, takes a risk, consolidates resources and sets up an enterprise.

This session will explain the attitudes required and the functions carried out inrelation to entrepreneurial activities.

Session Objectives

At the end of the session, trainees will be able to define the termsentrepreneurship, intrapreneurship and entrepreneur

Learning Outcomes

On completion of this session, you should be able to:Define the terms entrepreneurship, intrapreneurship and entrepreneurDistinguish between entrepreneurship and entrepreneur?

Learners Activities / Environment

Ensure that the learning activities include explanations of entrepreneurship,intrapreneurship and entrepreneur

Activity

What do you understand by the term entrepreneurship,intrapreneurship and entrepreneur?


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Reading MaterialReading MaterialReading MaterialReading Material

Entrepreneurship can be described as a creative and innovative response to theenvironment. Such responses can take place in any field business, industry, agriculture,education, and the like. Doing new things or doing things that are already being done innew ways is, therefore, a simple definition of entrepreneurship. Or you may emphasizethat for our understanding, a person involved in a business activity where the person sellsa product/service and makes profit is an entrepreneur. This may include manufacturing,trading, or service oriented business (i.e. laundry, restaurant, petrol pump, etc.).Whatever may be the activity, entrepreneurship has two distinct aspects one is theentrepreneur herself and the other is the enterprise.

ENTREPRENEUR + ENTERPRISE = ENTREPRENEURSHIP

Entrepreneurs by and large have been found to be people with a high drive and higheractivity level, constantly struggling to achieve something which they could call as theirown accomplishment. They like to be different from others and strive to accomplishgoals which are not otherwise very easy to achieve. At the same time, they do not striveto achieve something which is practically impossible. Constantly goaded by their goals,they work very hard. It has been found that some of the highly motivated entrepreneurshave developed awareness of their own strengths and weaknesses and also about theresources and constraints in the environment while striving to reach their goals. Thisconcept is gender free.

Entrepreneurship Concept

What is Entrepreneurship

Entrepreneurship is one of the four mainstream economic factors: land, labor, capital, andentrepreneurship. The word itself, derived from 17th-century French entreprendre - refers toindividuals who were undertakers, meaning those who undertook the risk of new enterprise

Entrepreneurship is the dynamic process of creating incremental wealth. This wealth createdby individuals who assume the major risks in terms of equity, time, and/or career commitmentof providing value for some product or service. The product / service may or may not be newor unique but value must be infused by the entrepreneur by securing and allocating thenecessary skills and resources. The process as involving all the functions, activities, and

actions associated with the perceiving of opportunities and the creation of organizations topursue them

Who is an Entrepreneur

A business founder Someone who has turned a normal community activity into a business. Anyone who creates

and introduces value to customers through a product or service and expect to get a financialreward. The entrepreneur is the individual (or team) that identifies the opportunity, gathers thenecessary resources, creates and is ultimately responsible for the performance of theorganization


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Entrepreneurial Businesses

The two most important categories of businesses to consider when discussingentrepreneurship are small businesses and micro enterprises. Though these two categoriesdo not capture all entrepreneurial enterprises, they comprise the lion's share of businessesthat fit within the definition discussed above.

Entrepreneurship and Innovation

Creative as a prerequisite to innovation Creativity- is the ability to bring something new into existence. Emphasis is on the ability,

not the activity, of bringing something new into existence. Innovation- is the process of doing something new. Innovation, - transformation of creative ideas into useful applications, but creativity is a

prerequisite to innovation.

The Creative Process

Five stages: Idea Germination

Preparation Incubation Illumination Verification

Innovation and Entrepreneurship

The difference between invention and innovation is: Invention- is the creation of new products, processes, and technologies not previously

known to exist. Innovation - is the transformation of creative ideas into useful applications by combining

resources in new or unusual ways to provide value to society for or improved products,technology, or services.

Elements in the Innovation Process

Analytical Planning- to identify: product design, market strategy, financial need Organizing Resources- to obtain: materials, technology, human resources, capital

Implementation - to accomplish: organization, product design, manufacturing,services

Commercial Application - to provide: value to customers, reward of employees,revenues for investors, satisfaction for founders


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The Entrepreneurial Process

Creating CreatingAn entrepreneurship anEntrepreneur enterprise

Different Stages of Enterprise Building

Realisation of when an entrepreneur scans theOpportunity environment and selects the product

Consolidation of an entrepreneur consolidates resources,Services (finance, land, buildings etc)

Implementation and resources are put together and entrepreneurCreation of venture starts an enterprise

Reference materials

1. Women Entrepreneurship Development Manual (ICECD) 19932. Change and Entrepreneurship, Jenks L. H, Harvard Univ. Press 1949


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2.0 Types of EntrepreneursTypes of EntrepreneursTypes of EntrepreneursTypes of Entrepreneurs

Introduction

There are many types and forms of entrepreneurs. Some operate as a family (mum and

dad), others as individuals sole trader. There are women entrepreneurs etc. This sessionwill expose you to the various types and forms of entrepreneurs with a view to widen upthe mind set of the trainees

Entrepreneurship Attributes:

The entrepreneurship attributes being addressed include the need to be open-minded,creative and ability to identify business opportunities, risk taking

Session Learning Objectives

At the end of the session, you should be able to describe the various types ofentrepreneurs

Learners Outcome

At the end of the session, you should be able to identify and describe various types ofentrepreneurs

ActivityIn your groups, identify the various types of entrepreneurs inyour community. The answers from this exercise shouldbe along he lines of those indicated on TR 2.2

Reading MaterialsTR 2.1

Who is an Entrepreneur

A business founder Someone who has turned a normal community activity into business Anyone who creates and introduces value to customers through a product or

service and expect to get a financial reward The entrepreneur is the individual (or team) that identifies the opportunity,

gathers the necessary resources, creates and is ultimately responsible for theperformance of the organization.

TR 2.2

Types of entrepreneurso Sole traderso Inventorso Innovatorso Agents of changeo Curious


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=

Entrepreneurial Traits Assessed in a Behaviour Test

1. The need to achieve:This is evident in an individuals desire to achieve some standardto excellence and success in performance

2. Risk taking: They have an inclination to take calculated, moderate and, intelligent risks.They tent to avoid both excessively high as well as low risks

3. Positive self-control: This includes self confidence as well as self-efficacy and, apositive image of ones abilities and achievements

4. Initiative and independence: Such people not only show initiative but also exhibit agreat deal of independence in their day to day behaviour

5. Problem solving: They have the tendency to approach problems with a view to solvethem

6. Hopeful about the future: Even in a situation where there is a lot of disappointment andfrustration, they dont lose hope

7. In constant search:Always scanning the environment for opportunities8. Time conscious:They set goals for themselves and try to accomplish them within the set

time framework

Reference materials2. Women Entrepreneurship Development Manual (ICECD) 19932. Change and Entrepreneurship, Jenks L. H, Harvard Univ. Press 1949

3.03.03.03.0 FormsFormsFormsForms of Businessof Businessof Businessof Business

Session Duration : 60 Minutes

Introduction

A business organisation in contrast to a public service organisation or a charity, exist toprovide goods and services at a profit. Making a profit may not necessarily be the soleaim of the business, but it is certainly what distinguishes it from a non-businessorganisation. The business organisation we are concerned with here range from one-manbusiness to a large public company thousands of staff in a variety of locations.

The session will therefore, identify and explain the various forms of business and relateto the legal requirement of their formation

Learning Objectives

At the end of the session, you will be able to:identify and understand the various from of businessdescribe the from of business and,relate the legal requirement of each from of business

Learning Outcomes

Various forms of business identified and describedLegal requirement relating to each from of business identified and discussed


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Activity

Questions for Discussion

1. What is the significance of limited liability toa.) shareholder? b.) creditors? c.) banker?

2. For what overall purpose are companies obliged to make public theirconstitution and activities?

3. What is the principle distinction between a private limited company andpublic limited company?

5. Why do some people prefer to establish a registered cooperative rather saya private limited company?

Reading Materials

FormsFormsFormsForms of Businessof Businessof Businessof Business

There are basically four forms of businessThe sole traderThe partnershipLimited company

Cooperatives

1. The sole trader

This is the simplest from of business. This means going it alone with one-personbusiness. The owner of the business takes all the profits but suffers all its lossesand has all the problems and worries to himself

The legal requirements for setting up such business are minimum. All profitsmade by sole trade are subjected to income tax rather than corporate tax levied oncompany profits

The main advantages of operating as a sole trader areThe formalities for starting up are minimumComplete autonomy to run the business as the individual wishesThe profits of the business belong to the traderNo public disclosure of accounts

DisadvantagesThe sole trade is entirely responsible for the debts of the businessThe individual as a manager has to be responsible for all aspects of thebusiness (marketing, sales, product development finance etc)


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2. Partnership

A partnership exists when at least two, and usually not more than twenty, personsagree to carry out a business together. Such an agreement can specify the rightsand obligations of each partner. As with sole trader, the members of thepartnership are owners of the property and liable for its contracts. Therefore, they

are responsible for meeting their debts to third parties

Advantages of PartnershipFew formalities required for starting upSharing of partners knowledge and skillsSharing of management of businessNo obligation to publish accountsSharing of profits or losses

DisadvantagesEach partner is liable for the debts of the partnership

Risks that the partners may not be able to work together at a personal levelThe death or bankruptcy of one of the partners will automatically dissolvethe partnership, unless otherwise provided for in the partnership agreement

3. Limited companies

A limited company can be formed by two or more people who become itsshareholder. When a limited company is formed it is said to be incorporated i.e.endowed with separated body, or persons. The corporation so formed is treated,according to law, as a separate entity, independent of its members. Limitedcompanies fall into categories Public limited companies (plc) and Privatelimited companies. A public limited company must make its shares available tothe public for purchase and the company name must end with words, Publiclimited company. A private limited company on the hand is not compelled to offloat is share to the public

In registering a limited company, the following are the legal requirements:1. The companys name2. The location of the registered office3. The objectives/purposes of the company4. A statement that the liability of members is limited5. The amount of share capital

Advantage of a limited company

In the event of failure of business, shareholders are protected against theloss of more than the nominal value of their shares

The separate legal person of the company exist independently of themembers

Shares (in plc) are readily transferable


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Disadvantages

Precisely because liabilities are limited, it may be difficulty for a smallcompany to borrow as extensively as desired since banks may be unable torecover their funds if business fails

There are considerable legal procedures to be followed when setting up a

company4. Cooperatives

Small groups of people who wish to set up a business along explicitly democraticlines and with the benefits of a limited liability can chose to establish acooperative. Usually promotion of cooperative has been encouraged by thegovernment. Some of the rules governing cooperatives are

Each member must have equal control on the one person one voteprinciple

Members must benefit primarily from their participation in thebusiness

Interest on the loan or share capital has to be limited

AdvantagesProvides an opportunity for pooling of capitalEncourages active collaboration between all section of the workforceProvide limited liability (if registered)Provides rewards on an equitable basis

DisadvantagesThere is less likelihood of a level of profitability and growth that could beachieved by a limited companyRelationships can deteriorateDecision making process can be lengthy

Legal RequirementsLegal RequirementsLegal RequirementsLegal Requirements

Sole TraderThe legal requirements for setting up such business are minimum.All profits made by sole trade are subjected to income

PartnershipFew formalities required for starting upNo obligation to publish accountsSharing of profits or losses

Limited companyIn registering a limited company, the following are the legal requirements:The companys nameThe location of the registered officeThe objectives/purposes of the companyA statement that the liability of members is limitedThe amount of share capital

Reference Materials

Management Theory and Practice by G. A Cole (Business Law - Sixth Edition by Keenan and Riches (2002)


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4.0 DIFFERENCE BETWEEN AN EMPLOYEE ANDDIFFERENCE BETWEEN AN EMPLOYEE ANDDIFFERENCE BETWEEN AN EMPLOYEE ANDDIFFERENCE BETWEEN AN EMPLOYEE ANDENTREPRENEURENTREPRENEURENTREPRENEURENTREPRENEUR

Session Duration 60 minutes

IntroductionBeing entrepreneurial does not only mean having a business. Entrepreneurial attributescould still be found even in an employee.

Learning Objectives

At the end of the session, trainees will be able to explain the differences between anemployee and an entrepreneur

Activity

In you groups, tackle question in TR 4.1 (the difference between and employeeand an entrepreneur) Answers from the activity should be along the lines given inHO 4.1 and HO 4.2

TR 4.1

Questions for Discussion

1. Identify and discuss the difference between and employeeand an entrepreneur

2. Identify and discuss Advantages and disadvantages of being

an entrepreneur3. Identify and discuss Advantages and disadvantages of beingan employee.

ReadingReadingReadingReading MaterialsMaterialsMaterialsMaterials

HO4.1

Difference between an Employee and Self-employment

A woman running a small business establishment by working on one or two machinesand looking after her business all alone is said to be self-employed. When a womanstarts a small business venture and employs a few people to keep it running, but managesthe show herself, she is an entrepreneur.

Thus, we can say that all entrepreneurs are self-employed but all self-employed are notentrepreneurs. The entrepreneur is one who initiates and established an economicactivity or enterprise. (This could be a self-employment unit or an enterprise with other)


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HO 4.2

Different Kinds of Employment

There are several ways in which people can be employed

Wage employment: This means working for weekly or monthly payment called wage orsalary. The work is done in a shop, factory, office or other places of business. Animportant thing to remember about wage employment is that it is usually obtained incompetition with other people who want the same job

Sheltered employment: Though not that common in Zambia, in this kind of employmentpeople also get a wage or salary, but their work is done in a special condition where theydo not have to compete with others who want a job. An example of sheltered employmentis the special workshop which are sometimes established for persons with disabilities

Cooperatives: Sometimes workers join together to share the running of a business.Instead of paying wages, each worker gets a share of the profits. These are common inagriculture industry

Self-employment: This is a situation where an individual establishes their own businessand pay themselves out of the profits

Reference Materials1. Small Business Management II, Unit 8, Open Learning Programme for

Entrepreneurs, EDI, FNST

2. Handbook of New Entrepreneurs. P. C Jain, Oxford University. Press, 1998


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5.05.05.05.0 SelfSelfSelfSelf----employmentemploymentemploymentemployment

Duration 45 Minutes

IntroductionMost countries in Africa, Zambia included face a serious shortage of employment.There are not nearly enough jobs for everyone. Most of the young people withgood qualifications have great difficulties to find employment. The difficulties areusually greater in rural area where there is far much less development

What can be done to improve the situation? Certainly, the answer does not lie inthe government or indeed anybody else creating jobs for the many unemployed.The answers are in individuals creating business for themselves and earn a livingout of it

Entrepreneurship Attributes: The attributes being addressed in this session include the

need to be creative, innovative, independent, risk takerLearning ObjectivesAt the end of the session, you should be able to

Identify self-employment as a viable career optionExplain the benefits of being self-employedExplain the challenges of being self-employed

Learning Outcomes

Self-employment definedBenefits of self-employment as an alternative appreciatedChallenges of self-employed explained and appreciated

Activity

Tackle exercise Self Assessment Instrument, HO 5.1 individually.Do not spent so much time thinking through the questions

Reading MaterialsReading MaterialsReading MaterialsReading Materials

HO 5.1

Self-employed

Self-employed are those workers who earn a living by running their own business.Examples include plumbers, gardeners and freelance photographers etc. Many peoplestart their business adventure dreaming of riches and freedom. And while both arecertainly possible, the first thing to understand is that there are trade offs in being selfemployed. Difficulty bosses, annoying co-workers, peculiar policies, demand upon yourtime and limits on how much money you can make are traded for independence,creativity, opportunities, and power. But by the same token, you also swap a regular pay-cheque and benefits for no paycheque and no benefits. A life of security, comfort, andregularity is traded for one of uncertainty


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There are definitely pros and cons to be self-employed. These include:1. Control. Even if you like your boss and your job, possibilities remain that you can

be laid off any time; the company can go bankrupt. But if you are self-employed,you are in control of you work and career

2. Money. Many people chose to be self-employed because they think they are more

money worth than they are making on a job or they want to provide a better lifefor their families. There is a limit to what amount of money one can make whenemployed. There are far fewer limits when you are an entrepreneur

3. Creativity and independence. Self employment provides for great creativity andindependence. Running your own business may require you to be marketingwizard, salesman, bookkeeper, secretary and manager all rolled into one

4. Freedom. Working at your own business gives you the flexibility to decide whenand where you will work. You decide your hours and place of business

But there are downsides to being self-employed1. Uncertainty. The life of an entrepreneur is not necessary an easy one. It is fun. It

is challenging, exciting, spontaneous. The hardest part of being in business foryour self is that there is no steady source of income; paycheque does not comeevery 30 days

2. Risk. Not all entrepreneur ventures are successful. The willingness to take asmart, calculated risk is the hallmark of smart entrepreneurs

3. Lack of structure. Many people like the structure for working for someones.They know what is expected of them and what they need to accomplish each day.This is not true when you work for yourself. The work is very unpredictable

There is need to consider both risks and rewards of entrepreneurship before deciding tojump in. It is easy to become infatuated with the idea of owning a business. But if onewas to do it right, and be successful, then there is need to take emotions out of theequation. One has to begin thinking like a businessman, consider risks, and makeinformed, intelligent, calculated decisions

HO 5.2

SelfSelfSelfSelf----assessment Instrumentassessment Instrumentassessment Instrumentassessment InstrumentAssessing Yourself

1. Are you a self-starter?a) Yes, I like to do things on my ownb) If someone helps me get started, I will definitely follow through.c) Most of the time, I would rather follow than lead.

2. How do you fee about taking risks?a) I really like the feeling of being a bit on the edge.b) Calculated risks are acceptable at times.c) I like the tried and true.

3. Are you a leader?a) I usually get people to go along when I initiate something.b) I can give the orders if I have to.c) I let someone else get things moving, and then I take part if I feel

like it.


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4. Do you like to assume responsibility?a) Yes, I enjoy taking charge of things and seeing them through.b) I will take over if I have to, but would rather let someone else be

responsible.c) Theres always some eager beaver around wanting to show how

smart he is. I say let him.5. How organized are you?a) I like to have a plan before I start.b) Being well organized isnt my strongest suit, but I can do it when

necessary.c) I just like to take things as they come.

6. How hard are you willing to work?a) I can stay motivated as long as necessary.b) I will work hard for a while, but when Ive had enough, thats it.c) I think many other things are more important than work.

7. Are you decisive?

a) I can make up my mind in a hurry if I have to.b) If I have to make up my mind quickly, I do, but I dont like it.c) I dont like to be the one to decide things.

8. Can you live with uncertainty?a) Yes.b) I can if I have to, but I dont like it.c) No. I like knowing what to expect.

9. Can you stick with it?a) If I make up my mind to do something, I dont let anything get in

the way.b) Usually.c) If things dont go right, I may just quit.

10. How good is your health?a) I never run down!b) I have enough energy for most of the things I want to do.c) I run out of energy sooner than most of my friends.

11. Are you competitive?a) You bet.b) When I need to be, I can bec) Not really, my nature is more laid-back.

12. Do you have a lot of willpower and self-discipline?a) Yes.b) I am disciplined when I need to bec) Not really.

13. Do you plan ahead?a) In my book, failure to plan is planning to fail.b) Planning is important, but so is spontaneity.c) I take one day at a time and let life take me where it will.

14. Are you creative?a) Yes I am. I am always thinking up new ideas.b) I have an occasional brainstorm.c) No, not really.


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15. Can you live without structure?a) Yesb) Actually, the idea of living without a regular job or pay check

makes me nervous.c) No, I like routine and structure in my life.

If you answered a on more than half of the questions, you have the personalityneeded to run your own business. If most of your answers were b youre likelyto encounter more trouble than you may want.

If you have several c answers, then you are not quite ready to start your ownbusiness. But that does not mean that you cant get ready. While certain aspectsof entrepreneurship are innate (the willingness to take a risk, for example), manyare learned (such as knowing how to conduct market research). If the results ofthis quiz tell you to slow down, that is good. You can always take businessclasses, read more books, or listen to business tapes in order to learn more.

Another option would be to get a partner who has the skills you lack. There aremany ways to start you own business, and if you are not ready now, it does notmean you will never be ready.

Reference Material

1. Small Business Management II, (EDI- India) 19992. Fredrick Harbison, Education, Manpower & Economics (New York, McGraw-Hill)

6.0 Historical Background to the Zambian Economy

Session Duration : 60 Minutes

Introduction

The wealth of Zambia is based largely on mining in the rich copper belt,and downturns in copper prices have severely damaged economicconsequences. Some processing and manufacturing has been startedsince independence, and during the 1970s attempts were made todiversify to agriculture and to make the country self-sufficient in food.In the early 1990s the estimated annual national budget showed about$665 million in revenue and $767 million in expenditure.

Session Objective

At the end of the session, trainees will be able to:Appreciate the historical background to the Zambian economy and itsimpact on the entrepreneurship growthWill be able to explain the various social-political trends in Zambiaand how these relate to entrepreneurship growth in the country


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Session Outcome

Session delivery

1. Distribute HO 6.1 and discuss the Historical background to the ZambiaEconomy

2. Distribute HO 6.2and discuss the Social Political Trend in Zambia3. Give a summary of the session

Tips

Please acquaint yourself with the five year national development plans

Historical background to the Zambia Economy

Zambianisation: A strategy adopted by the government soon after independence

in 1964 Objective of this strategy was to empower Zambian by offering them senior

positions that were held by the European colonial masters

Nationalisation: This was a state programme that saw the take over of keycompanies by the government

Import Substitution Industrialisation Strategy: A deliberate policy to startmanufacturing locally goods that were being imported into the country.Examples; Livingstone Motor Assembly, Rover Zambia in Ndola

Mono-culture Economy: Zambia is highly dependant on only one economicresource, copper. This is at the expense of other sectors like agriculture,manufacturing, tourism. This state of affairs did not promote the growth of other

sectors nor later on encourage entrepreneurial activities Urbanisation: Zambia is one of the most urbanised countries in Sub-Sahara

Africa. About 60% of the Zambian population live in urban areas particularlyalong the line of rail.

One Party State: A political situation in which there is only one political party inthe country. This was a situation in Zambia from 1973 to 1991, United NationalIndependence Part was the only party in the country

Multi partism: A political situation where there are more than one party in thecountry. This was the case from 1964 to 1973 and 1991 to date

Population growth rate: The average population growth rate for Zambia has been3.6%. This is considered to be too high for a country like Zambia


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HO6.2

Social-political Trends

1960s The first ten years of independence was marked by an outpouring optimismThere were hug investments in infrastructure and human resource

Huge sums of money were put into ministries, schools, hospitals, factories androads. At this time, most of the economic activities were still concentrated in afew white settlers

New measures were put in place to create jobs and self employment particularlyfor the indigenous Zambians. For example, the cooperative movement,establishment of at least a factory in major districts (Kapiri Glass, KawambwaTea and Kafue Nitrogen Chemicals etc)

1970s The country started experiencing economic slowdown, global market price forcopper started becoming weaker. Prices of imports were getting higher and higher

thus making operations of most the enterprises in the country difficult as thesewere highly dependant on foreign inputs

Financial support from overseas was nowhere near enough to resolve the rapidlygrowing balance of payment position

1980s The country adopted the IMF supported economic reforms programme. However,these reforms put the country into even more stress. The strength of the localcurrency weakened significantly, inflation sky-rocketed, generally making thedevelopment of enterprises in the country unattainableDue to the lopsided development between the rural and urban areas, the countystarted experiencing huge drift of rural dwellers into towns particularly along theline of rail. This trend had social consequences like high crime rates in urbanareas. Not every one was able to be absorbed into formal employment. Socialamenities were not enough to go round

1990 The era saw the end of the one-party-system and the reintroduction of the multi-partism. This was followed by almost full liberalisation of the economy. Thesechanges were accompanied by the change of government as well.

2000 The country started experiencing positive growth. The mining sector which was atthe verge of collapse has picked up with the introduction of new ones. The erawas also marked with elections and the new government that was formed pledgedto stump out corruption.

The country is still certainly facing a number of challenges like HIV/AIDS whichhas taken a toll on the productive sector of the society. Employment levels arestill low and poverty levels are high


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Manufacturing

In the early 1990s manufacturing employed less than one-sixth of the labour force, butaccounted for more than one-third of the gross domestic product (GDP). Principalactivities were the smelting and refining of copper and other metals, vehicle assembly,petroleum refining, food processing, and the production of fertilizers, explosives, and

textiles.

Foreign Trade

Importssuch as machinery and transport equipment, mineral fuels and lubricants,chemicals, food, and basic manufactured goods constitute the biggest chunk of totalimports. Exportschiefly copper, cobalt, and zinc. Principal partners for exports areJapan, France, Thailand, India, Belgium and Luxembourg (which constitute a singletrading entity), and Saudi Arabia; principal partners for imports are members of theSouth African Customs Union (Botswana, Lesotho, Swaziland, and South Africa),Great Britain, Germany, and the United States.

Transportation and Communications

Zambia has about 2164 km (about 1345 miles) of railroads. A railroad from Zimbabweruns through Livingstone, Lusaka, and Ndola, connecting with the DRC system, andthen to Benguela on the Atlantic coast of Angola. The Tanzania-Zambia Railroad(Tazara) connects Lusaka with the port of Dar es Salaam in Tanzania. About 13,500 km(about 8400 miles) of all-weather roads connect the main towns of Zambia. Lusaka isserved by an international airport

Reference Materials

1. Zambia National Development Plans I, II, III, IV2. Informal Sector Business Activities in Lusaka Urban Districts, Tolosi S &

Nawiko M 1997

3. Emergence, Growth and Characteristics of the Informal Sector in Zambia,1991


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7.1 Natural Resources as They Relate toEntrepreneurship

Session Duration 60 Minutes

Introduction

Every location in this country is endowed with national resources. However, only a feware able to harness these resources for their livelihood. This session aims at exciting thetrainees to be critical to the resources around them.

Entrepreneurial Attributes: Resourcefulness, creative, innovativeness,

Learning Objectives

At the end of the session, you will be able to

List the various resources found in Zambia Identify the potential usage of these resources for entrepreneurial growth

Activities

1. In your groups read, discuss, and answer questions on TRI 7.1Identification of Resources and their usefulness to entrepreneurialactivities

TR7.1

Individual Exercise: Resource Identification

1. Identify a business that you would like to venture into2. What are the resources required for the business you have identified?3. What is the importance of each resources identified?


Land and Resources

Most of Zambia is high plateau with a flat or gently undulating terrain. Elevationsaverage between about 1100 and 1400 m (about 3500 and 4500 ft). Mountains in thenortheast reach 2164 m (7100 ft). Major rivers are the Zambeziin the west and southand its tributaries, the Kafuein the west and the Luangwa in the east; and the Luapulaand Chambeshi, in the north. Lake Bangweulu, in the north, is surrounded by a vastswampy region. Lake Kariba is a large reservoir formed by Kariba Dam on theZambezi River.


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Climate

Although lying within the Tropic Zone, much of Zambia enjoys a pleasant subtropicalclimate because of the high altitude. The average temperature in Lusaka during July,the coldest month of the year, is 16 C (61 F); the hottest month, January, has anaverage temperature of 21 C (70 F). Annual rainfall ranges from 750 mm (30 in) in

the south to 1300 mm (51 in) in the north. Nearly all of the rain falls betweenNovember and April. This type of climate is conducive for tropical fruits cultivation,cotton, maize, sorghum and cassava.

Natural Resources

Most of the country has savannah-type vegetationgrasslands interspersed with trees.Teak forests are in the southwest. Animals include elephants, lions, rhinoceroses, andseveral varieties of antelope. Of overwhelming importance are the rich mineral veins ofthe countrys copper belt. The belt extends down into Zambia from southern DRC andcontains major deposits of copper, cobalt, and other minerals.

Zambia also has substantial hydroelectric potential. The Kariba Dam on the ZambeziRiver is the countrys main power source.. Other stations are on the Lunsemfwa andMulungushi rivers serve Kabwe. Installations have also been built on the Kafue River.In the early 1990s the total installed electricity-generating capacity was about 2.8million kilowatts.

Labour

In the early 1990s about 2.8 million Zambians were part of the labour force.

Agriculture

More than two-thirds of Zambias working population is engaged in agriculture, largelysubsistence farming. Principal crops in the early 1990s (with annual output in metric

tons) included corn, the staple food, 464,000; sugarcane, 1.2 million; and cassava,270,000. Sunflower seeds, peanuts, sweet potatoes, and tobacco are also grown. Beefand dairy cattle are raised for domestic use.

Mining

The copper mines of Zambia are among the richest in the world. Although worldcopper prices collapsed in 1975, damaging the Zambian economy, in the early 1990sthe country still received 93 percent of its export earnings from copper. Other minerals

extracted were zinc, cobalt, and lead. A diamond field was discovered in 1992.

Tip

:In the discussion emphasise on the importance of human resources and finance as someof the critical resources for any enterprise


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8.08.08.08.0 Informal Sector Growth

Introduction

The first appearance of this term, informal Sector in official documents was in a reportof ILOs mission to Kenya in 1972. One of the missions main findings was that indeveloping countries like Kenya (Zambia inclusive), the main employment problem wasnot unemployment, but the existence of large numbers of working poor many of themworking so hard in the production of goods and services, but whose activities were notrecognised, recorded, protected or regulated by the government. This phenomenon wasrecorded as the informal sector.

Learning Objectives

At the end of the session, you will be able to:

Explain the term, informal sector

Identify factors encouraging the development of informal sector Understand the role the informal sector play in Zambia

Session Outcome

Informal sector explained

Factors encouraging informal sector growth identified

Informal sector in Zambia discussed

Activities

In your small groups, identify and discuss factors encouraginginformal sector growth in Zambia

Reference MaterialReference MaterialReference MaterialReference Material

The Informal Sector

What are informal sector: These are very small units producing and distributinggoods and services and, largely of independent and self employed. They operate

on very little capital or none at all and utilise very low technology and skills. Theyoperate on very low levels of productivity, and which generally provide very lowand irregular income and, highly unstable employment for those employed bysuch enterprises.

They are informal because for most part they are not registered with thegovernment. They are mostly not recognised and supported by government. Theyare, most of the time compelled by circumstance to operate outside the frameworkof the laws. They tend to have very little or no access to organised markets and tocredit systems


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The importance of the informal sector in Zambia can not be over emphasised. Thesector employs between 40% to 60 percent of the urban labour force

In Zambia, the informal sector can be traced from colonial days of mining. In

Lusaka for instance, the urban district informal sector business activities started in1930. During this time, informal sector developed because of the need to providecertain goods and services to European settlers and African settlers. Products suchas firewood, charcoal, reed-baskets could not be provided in modern markets

Factors encouraging the Informal SectorMostly it is due to the inability by other sectors of the economy agriculture orother rural activities on the other hand, and modern industry and services on theother to provide adequate incomes or employment opportunities to a rapidlygrowing labour force. The steady stream of migration from the rural areas urbanareas coupled with increasing population growth meant that urban modern

activities have been able to absorb more of the burgeoning urban labour force.

Those excluded from the employment in the modern sector constitute a largelabour surplus. Since the people concern can not afford to be employed for anylength period of time, they have to create for themselves activities which canprovide them with income

Other recent developments like the 1980s recession, the IMF/ World Bankadjustment programmes have further resulted in the growth of the informal sector.The restructuring of the civil service and the closing of most parastatalorganisations saw a huge number of people without employment. These ended upinformal sort of business activities which the majority fall in the informal sector

Ease entry is often said to be the main feature of the informal sector in contrast tothe formal sector where entry barriers are higher

Examples of Informal Sector in ZambiaThe following are the examples of the informal sector in Zambia

Brick makingDoor, window frame and burglar bar manufacturingSoap manufacturingTailoringFood processingConstruction of private homesStone crushing and sellingStreet vendingShoe repairsMotor vehicle repairsWeldingHair dressing


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Reference:1. How to Motivate Entrepreneurship in Zambia, Nanjappa K. L Min. of

Commerce

2. Small Enterprise Development Programme, Lusaka 19933. The Dilemma of the Informal Sector (ILO) 1991

4. Informal Sector Business Activities in Lusaka Urban District, Tolosi S &Nawiko M 19975. Emergence, Growth and Characteristics of the Informal Sector in Zambia,

1991


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9.0 The Role of Enterprises in Economic Growth

Session Rationale

The role of small sector has been recognised as the most powerful and vibrant

sector of the Zambian economy. It has the potential to provide more employmentper unit of investment and therefore, the government attaches great importance tothe development of the small and the ancillary sector. The ancillary units providethe support services required to the growth of medium and large scale sector inthe country. The small sector has shot into prominence over the years through itsmultifaceted contribution

Session Objectives

At the end of the session, trainees will be able to:

Define the terms, micro, small medium and large enterprises

Define the terms economic growth and development Explain the role of enterprise in the Zambian economy

Session Outcomes

Informal sector explained

Factors encouraging growth of informal sector identified

Informal sector in Zambia discussed

Activities

In your groups, discuss the role of enterprises in the Zambian

Economy


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Reference Material

HO 9.1

Reference:1. How to Motivate Entrepreneurship in Zambia, Nanjappa K. L Min. of Commerce

2. Small Enterprise Development Programme, Lusaka 1993

3. The Dilemma of the Informal Sector (ILO) 1991

The role of Enterprise in the Zambian Economy

In Zambia, there is a challenge before the class of entrepreneurs to accelerate thetempo of industrial activities in such centre in which the traditional capital hasremained shy to enter, and where without foreign collaboration and technical know-how imported from foreign lands. The Zambian industry has not ventured to progress.This is a highly unsatisfactory state of affairs and it calls for Zambian entrepreneursaccepting the challenge to take calculated risk and adventures in moving bravely intosuch sophisticated centres without in any way relying on foreign collaborations.

Imbalances

The second vital challenge for the entrepreneurs is the dangerous imbalances in theregional economy. By and large, Zambian Industries are concentrated only at Kabwe,urban district, Kafue Township, Livingstone district, Lusaka urban district, andCopperbelt province of Ndola Rural district, exception of Ndola Rural District.Nearly 60% of total population of the country are living in rural areas, and yet thereare fewer industries to support them. People on the Copperbelt and Lusaka areas forinstance, are earning five times more than their relatives. Thus it may be seen thatvast areas of the country are starving of industries and the benefits of industrialeconomy. Thus entrepreneurship Zambia shall be identified with the inclination ofnew entrepreneurs to penetrate all the rural parts of Zambia, so that within a very

short time the regional imbalances are corrected all over the country through theefforts of entrepreneurs.

As already pointed out entrepreneurship involves risk and adventure throughcalculated and the resurgent youth of the country are most suitable. In fact thecreation of Small Industry Development Organisation (SIDO) then was done with aview to take the responsibility of ways and means to create such an atmosphere wherethe entrepreneurs would find the appropriate assistance for the fulfilment of theirimage. In the context of the traditionally shy investment capital in Zambia, not only apositive entrepreneurship has to be developed but also the capital to sustain theadventure of entrepreneurship. The time has come to identify entrepreneurship as

separate from industrial opportunism, and the measures mentioned above are directedtowards such identification.


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10 Policy Instruments Supporting EnterpriseDevelopment

Session Objectives

At the end of the session, you will be able to:

Outline policy instruments supporting enterprise development Relate policy instruments to enterprise development

Learning activities

Ensure that the learning activities include the following

An outline of the policy instruments supporting the development of enterprise inZambia

Relation of policy instruments to enterprise development

Activity

1. Outline the Government of Zambia policy on enterprise development2. Discuss how these policies could lead to the promotion of enterprise development

in the country. Suggestion, if any additional policy guideline that should beincluded


Small EnterprisSmall EnterprisSmall EnterprisSmall Enterprise Development Act 1996e Development Act 1996e Development Act 1996e Development Act 1996

As the means towards the Government of Zambias support of small scale enterprise, theSmall Enterprise Development Act was enacted in 1996This act led to the creation of the Small Enterprise Development BoardThe function of this Board included:

To promote and facilitate the development of micro and small enterprise

To create a conducive environment for attaining of the purpose

Specifically that Board was to:

Formulate, coordinate and implement policies and programmes to promote thedevelopment of micro and small enterprises

Monitor the efficiency and performance of micro and small enterprises having

regard for the purpose for which they are established Establish a data base for facilities and sources of finance, technology, raw

materials, machinery, equipment and supplies

Provide marketing support services to the micro and small enterprises

Register, collect, research and disseminate information relating to micro and smallenterprises

Monitor and coordinate activities and programmes of promotional agenciesengaged in micro and small scale enterprise development


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Assist in the development and upgrading of appropriate technologies for microand small enterprises

Initiate and develop industrial estates and common facilities for use by micro andsmall enterprises

Establish training and processing centres to provide machinery and equipment

Develop the Zambian entrepreneurship Arrange for independent training, management and consultancy services for micro

and small enterprises

Provide the financial services

Make recommendations to the Ministry on any legislative reforms which may berequired for the development of the micro and small enterprises

Reference Material

1. Small Enterprise Development Act No. 26 of 19962. Technical Education, Vocational and Entrepreneurship Training Policy (GRZ)

1996


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11.Statutory Obligation Relating to EnterpriseDevelopment

Session ObjectiveAt the end of the session, trainees should be able to:

Apply statutory obligations to enterprise development

Leaning Activities

Ensure that the learning activities include the followingApplication of statutory obligation to enterprise development. This should include

PAYEo NAPSAo Labour lawso Licensing and permits

Activity

1. What are the enterprises obligations as regard Pay-as you earn (PAYE)and National Pensions and Savings Authority (NAPSA)

2. What are the labour laws related to an enterprise and, how are these beingapplied in an enterprise?

3. What are the licenses and permit requirements in operating a particularenterprise?


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12 Support Systems

Session Objectives

At the end of the session, trainees will be able to

Identify support services to enterprise development Discuss the role of support systems to enterprise development in Zambia

Session Outcome

Support systems to enterprise development identified

Support systems to enterprise development discussed

Reading MaReading MaReading MaReading Materialsterialsterialsterials

Financial Services and Incentives

The government of Zambia through the Small Enterprise Development Board, does,in order to facilitate the development of enterprise, provide the following financial

services and incentives: Identifies entrepreneurs, and projects which require financial assistance

Provides information on the sources of finance

Assists enterprises with the preparation of business plans, project proposalsand other loan application documents

Monitor, establish and design standards for loan administration, effective useof loan funds and repayment mechanism by enterprise so as to curb misuse offinancial resourceso venture capital

Exemptions

An enterprise registered under the Small Enterprise Development Act is entitled

to the following incentives Exemption from paying of tax on income for

The first three years of operation for an enterprise operating in an urbanarea

The first five years of operation for an enterprise in rural area

Operating of a manufacturing enterprise for the first five years withoutmanufacturing licence

Exemption from payment of licensing fees

Exemption from payment of rents on factory premises for the first fiveyears

Trade licensing act shall does not apply to such enterprise

ActivityDiscuss how the financial services and incentives provided by the governmentcould promote the development of enterprises in Zambia

Reference Material

1. Small Enterprise Development Act No. 26 of 1996


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MODULE TITLE:

MODULE 02DEVELOPING ENTREPRENEURIAL COMPETENCES

TABLE OF CONTENTS

1. MODULE INTRODUCTION ............................................................................... 32

2.1: DEVELOPING SELF MOTIVATION ................................................................. 33

2.1.2DISCOVERINGYOURSELF ............................................................................. 382.1.3 POSITIVETHINKING .................................................................................... 412.1.4IMAGINATION,INNOVATION,CREATIVITYOFANENTREPRENEUR . 452.1.5GOALSETTING ................................................................................................. 48

2.2 DEVELOPING BUSINESS OPPORTUNITIES ................................................... 50

2.2.1BUSINESSIDEAS .............................................................................................. 512.2.2ENVIRONMENTALSCANNING...................................................................... 56

2.2.3FEASIBILITYSTUDY ....................................................................................... 652.2.4BUSINESSOPPORTUNITIES ........................................................................... 682.2.5RISKTAKING .................................................................................................... 73

2.3 MOBILISING RESOURCES FOR AN ENTERPRISE ....................................... 76

2.3.1RESOURCESMOBILISATION......................................................................... 77

2.4 NETWORKING FOR AN ENTERPRISE DEVELOPMENT............................. 80

2.4.1ENTERPRISENETWORKING.......................................................................... 81

2.5 EFFECTIVE BUSINESS COMMUNICATION IN AN ENTERPRISE............. 85

2.5.1COMMUNICATIONINANENTERPRISE....................................................... 86

2.5.2PLANNINGFOREFFECTIVEBUSINESSCOMMUNICATIONINANENTERPRISE............................................................................................................... 902.5.3APPLICATIONOFINFORMATIONANDCOMMUNICATIONTECHNOLOGY(ICT)INANENTERPRISE............................................................. 96


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1. MODULE O2 INTRODUCTION

MODULE AIM

The aim of the module is to build entrepreneurial competences, attitudinal change thatwill lead to self motivation and generation of business ideas.

LEARNING OBJECTIVES

At the end of the module, Trainees will be able to:1. Demonstrate self motivation;2. Develop business ideas,3. Identify and select business opportunities;4. Mobilize resources,

5. Network for enterprise development;6. Implement business decisions,7. Communicate in various business situations;


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2.1: DEVELOPING SELF MOTIVATION

This unit will cover the following sessions:

Entrepreneurial Traits and characteristics: Discovering Yourself; Positive thinking; Imagination, Innovation and Creativity of an Entrepreneur; Goal setting


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2.1.1 ENTREPRENEURIAL TRAITS AND CHARACTERISTICS

Introduction

The reasoning behind this session on entrepreneurial traits is that it enables your learnersto explain what drives the individuals that have succeeded in enterprise development. Italso enables the learners assess their ability to venture into the entrepreneurial career. Inthe end, it will isolate their personality strengths and weaknesses to start an enterprise.The session affords them an opportunity to identify weak points that they can dosomething about.

Unit Learning Objectives

On completion of this session, the trainee will be able to:

1. Describe entrepreneurial traits and characteristics;2. List the entrepreneurial traits and characteristics;3. Explain the relationship between entrepreneurial traits and characteristics and the

success of the enterprise;

Unit Sessions

The session will cover the following topics:

i. What are entrepreneurial traits and characteristics?ii. List of entrepreneurial traits and characteristics;

iii. The relationship between entrepreneurial traits and characteristics and the successof the enterprise;What are entrepreneurial Traits?

In the first module you were introduced to the meaning of an entrepreneur. You mustunderstand that there are many meanings of the term entrepreneur. In all explanations youwill come across or create yourself, you may notice that there are four parts to themeaning namely, person or persons and their personality,persistent pursuing of anopportunity, the establishment of business or organisation and the achieving of benefitand growth.Traits are a mixture of an individual set of qualities, including behaviour,nature, needs, drive and main beliefs.These traits you are born with and others you get

them through informal and formal training.

The traits are influenced by:

Characteristics they are born with; Culture of the community (society); Family, work and; Education; Political and policy environment

These sources of influences by encourage or discourage the growth of entrepreneurship.


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The Entrepreneurial Traits and Characteristics List

Entrepreneurs are successful for a number of reasons. In this session we shall discuss theentrepreneurial traits and characteristics. You may ask what are traits and characteristics.These traits have been observed through observation and studies among successful

business persons in a number of countries. Let us look at some of the traits andcharacteristics. Do you have the following traits?i. You set clear goals Your road to success must begin with asking yourself

where you are going. The existence of a clear and specific purpose, aim or goal isthe starting point for your road to achievement.

ii. You are committed- You have belief in what you are capable of achieving; youare committed to your team and the people you work with in the business.

iii. You act on opportunities identify and act on new or unusual businessopportunities by looking for resources to create something valuable.

iv. You have initiative you are self-reliant, and have willingness to initiate actionwithout needing or taking direction from others and have ability to solve

problems.v. You are persistent you do not tire to hunt for success despite difficulties on theroad to success. If one door closes on you another is identified and opened.

vi. You have strong passion- a driving passion to carry out your idea, be it in thefrom of a new technology, a different approach, a more thorough application ofknown technologies or a combination of all three.

vii.You have strong self-confidence. You are willing to be lonely and make toughdecisions and believing you are right despite the majority thinking you are wrong.

viii.You are disciplined you have self control to plan and carry out the plan. Youknow where you are going and how you will get there because you have refinedyour goal into action and you have put in measures to check progress.

ix. You are a moderate risk taker - You are not a gambler who throws aroundmoney without having control over the results of your action. Many people thinkentrepreneurs are generally thought of as tremendous risk takers. You as anentrepreneur are advised to focus on reducing risk deliberately by planning andmanaging the business well.

x. You are knowledgeable about business- You look for information within thebusiness or its surroundings to help you achieve your purpose or avoid problems

The list of these traits is not exhausted. You may think of other characteristics orremember certain behaviour among the business persons you have come across.Success in Business and Entrepreneurial Traits

Like many nice things in life, owning and managing a business successfully is tough.Business is not for the weak in body and mind. In business there are many dangers. Youmany lose your effort, time and money you have put in the business. Or the businessmany be a problem to other people who are not in any way connected to it.The entrepreneur to successful own a business goes through the following activities: Identifies and develops a business opportunity ( to be discussed in the next sessions); Develops a business strategy (way of doing business); Mobilise resources to start the business; Start the business; Expand the business;


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There are many opportunities out there unless one has a trait of identifying anddeveloping them, they remain unexploited. To develop a business strategy requiresdeveloping a clear goal, information, passion and commitment. There are enoughnegative influences from your friends, family and community to discourage you put the

idea on hold and seek the easy way out and seek employment.

For business activities to start you need resources but resources are few and those whohave resources are not easy to help. This is one of the strongest tests to starting abusiness. I am sure you have met many people say that they are unable to go intobusiness because of lack of resources. You need to rely on some of the traits above,namely, seeking information on resource providers, persistent in asking for support evenwhen you have been turned down several times and showing confidence in what youplan to do to win over others.

A new business has as many needs for care as a newly born baby. In a new business

almost everything is new, the owners, customers, employees and suppliers are new. Inaddition the business belongings are new. In this new environment mistakes are bound tobe made. The entrepreneur needs to have the character to be focussed and apply some ofhis/her traits such as being disciplined to handle temptations, having the goal in minddespite current difficulties, having personal initiative to solve problems. Some of theproblems experienced by start up are as follows: Lack of experience; Low capital, poor cost control; Poor location; Too much stock; Excessive buying of fixed assets; Poor customer care; Poor planning; Poor execution of plans; Negative attitudes to work among employees

A business that is expanding will need new management to take care of increasedresponsibilities. If the entrepreneur was owner-manager it is time to take initiative andtake the opportunity of employing experienced and skilled human resource in thebusiness.

Summary

In this session, we described traits of an entrepreneur. We looked at the behaviour of aperson that influences entrepreneurial activities. Ten entrepreneurial traits have beenlisted and explained. Lastly the entrepreneurial traits have been linked to the success of abusiness through the main activities of an entrepreneur starting from opportunityidentification to expanding the business. Each of the entrepreneur traits, goal setting,commitment, opportunity seeking, personal initiative, persistent, passion, self disciplineand information seeking can be applied at each stage of the entrepreneurial stage.


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Exercise

Answer the following questions:

1. Name one successful entrepreneur you know very well. Discuss the

entrepreneurial traits that have been observed displayed by the entrepreneur youhave mentioned.

2. Explain how training can help develop entrepreneurial traits?

Reference Materials

1. Matthew Sartwell, NapoleonHills Keys to Success; Piatkus, London, 19952. Thomas W. Zimmerer and Norman M. Scarborough, Essentials of

Entrepreneurship, Pearson International,


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2.1.2 DISCOVERING YOURSELF

Introduction

It is important for the learners to discover their personality in order to see whetherentrepreneurship is for them. The personality may assist learners chose a business thatwill be enjoyable rather than a punishment. What they enjoy doing has a relationship withtype of personality they have.



1. Describe personal attributes and talents;2. Identify personal attributes and talents;3. Relate talents and attributes to entrepreneurial success.

Sessions

This unit will cover the following session

i. Describe personal attributes and talents;ii. Identify personal attributes and talents;iii. Relate talents and attributes to entrepreneurial success.

What Are Personal Attributes and Talents?

You have personal attributes and talents that can make you succeed in business. Personalattributes and talents are the right skills and abilities for the job. A successful career in

business is an outlet for your personality, interests, skills and values. So what are yourpersonality, interests, skills and values? The sum total of these qualities is called yourpersonality.

Understanding your personality can tell you such things as how much encouragement youneed from other people to do anything. Or are you a person who is relaxed working onyour own? Are you an organised person or otherwise. Do you approach everythingcaution or you one who goes through with anything without concern?

It is important for you to discover your personality in order to see whetherentrepreneurship is for you. Please you must realise though that your personality may

assist you chose a business that will be enjoyable rather than a punishment. What youenjoy doing has a relationship with type of personality you have.

Identifying Personal Attributes and Talents

It is useful to identify your personal attributes so that you will be able to decide on whattype of business is suitable to you. These attributes will also be useful in identifyingbusiness opportunities, establishing the business, managing the business and initiating itsgrowth.


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Ask yourself the following questions: Do you like to work with machines and tools? Do you like to observe, learn, examine, analyze, and solve problems? Do you like to use you imagination or creativity to solve problems? Do you like to work with people; to inform, enlighten, help, train, develop or curethem; Do you like to work with people; to influence, persuade, lead, or manage for

organizational goals or economic gain? Do you like to work with data? Do you have functional skills? (Skills not necessarily associated with a specific job

and are used to accomplish general tasks or functions of a job e.g. problem solving); Do you have content skills called work-content skills, specific and specialized to one

job, such as preparing a financial statement, or fixing a car? Do have adaptive skills cover ability to learn quickly, teamwork, being self

motivated, self-awareness, empathy, persistence, optimism, and social deftness;

Applying talents and attributes to entrepreneurial success

There are a number of skills you'll need to succeed as an entrepreneur. You should notworry if do not possess them all. As an entrepreneur you can always employ people withthose skills to add to your abilities.

Below are skills you may need now or later to help you in business:

Interpersonal Skills

As an entrepreneur you should have good people skills. You ability to freely mix withmany people is a valuable asset that is worthy more than the money you may have in abank. When people like you its is very likely they will like your business too.

Networking Skills

Networking can be a useful business approach to establish build partnerships anddiscover new business contacts. A successful entrepreneur is a net worker. You must bevisible and easy to remember in gatherings.

Leadership Skills

Leadership is the ability to influence.Once you are anentrepreneur it means you havetaken up a leadership role. You may be owner-manager worker (OMW), the skills ofleadership is very important.

Management Skills

Management skills mean planning, organising, leading and controlling activities thatcover operation, employees, customer, suppliers, and government agencies.

Employee Relation Skills

Employees are the most important resource your business has. It is essential that youmanage this resource very carefully. It is a resource that can come in today and walk outtomorrow. A good relationship with Human resource will make your life much easier


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Team Building Skills

You must build a team of essential professionals who you share the same vision. You dopossess all the needed skills and experience assembling a team of employees, partners,accountants, your lawyers, and bakers will take your business to a higher level.

Marketing and Sales Skills

Marketing and selling skills are essential to bringing in revenue. Unless the customer isaware of and interested in what you are selling they will never buy. If marketing andselling are difficult employ a sales person.

Financial Management skills

Understanding cash flow will save you business going under faster than you can registerit. The danger areas are poor working capital; cash withdraws by the owner, creditmismanagement, and misunderstanding of cash surplus and profit.

Time Management SkillsTime cannot be stored for future use. It cannot be bought from a shop. It is not elastic.You can only use or misuse time available. Time is one of the resources whose value isunderestimated until it is too late. There a number of ways that will increase the wastageof time namely: meetings, poor planning, repeated interruptions, failure to list priorities,failure to delegate, being disorganised, indiscipline and failure to say no.

Do not worry if you not have these skills. Many people even those who have beenrunning business for many years do not have all these skills. As an entrepreneur,however, you must learn some of these skills to help you run the business effectively.

Summary

In this unit we discussed that a successful career in business is an outlet for yourpersonality, interests, skills and values. We emphasise that it is valuable to recognizeyour personal attributes so that you will be able to decide on what type of business issuitable you. In addition an entrepreneur can employ people with those skills to add toones abilities. There are interpersonal, marketing, management skills, technical andcommunication skills you need now or later to help you in business

Exercise


1. Explain the purpose of identifying your personal attributes and talents;2. List the personal talents and skills you possess?

Reference Materials

1. Beardwell Ian, Human Resources Management, Prentice Hall Essex, 1994;2. Mathew Sartwell, NapoleonHills Keys to Success; Piatkus, London, 1995


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POSITIVE THINKING

Introduction

What one thinks about somehow transform itself into the physical reality. If one expects

to fail, you will fail and if you expect to win you will win. If an individual has a positivethoughts and attitude towards success in business the mind sets you up in a position tosucceed.


On completion of this session, the trainee will be able to:1. Describe positive thinking;2. Explain the thinking process;3. Apply the process of positive thinking to entrepreneurial success.

Session

This session will cover the following topics:

i. Description of positive thinking;ii. The thinking process;iii. Application of the process of positive thinking to entrepreneurial success.

Description of positive thinking

If you expect to win you will win and conversely if you expect to lose you will lose. It isa matter of your attitude. What is an attitude? It is a mental make-up, usual frame ofmind. Attitudes are part of the abilities. The ability to interact socially requires certain

attitudes. All of our feelings, beliefs and knowledge are based on our internal thoughts,both conscious and subconscious. You are in control, whether you know it or not. We canbe positive or negative, enthusiastic or dull, active or passive.

The Thinking Process

The mind has tremendous power that can be used to make your life better. Your mind canbe conditioned to think positively to bring desirable changes to your life. You as a humanbeing is created with enough resources to be successful in the field of your choice.The mind is the mental power that enables you and me to: Think; Make choices, Experience emotionsThe mind is the seat of intelligence and memory. The mind is divided into two parts of

activities known as: Conscious Mind; Subconscious Mind

The conscious mind enables you to: Use numbers in calculations; Words in speech; Controls muscular movements; Make decisions


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The subconscious mind on the other hand enables: Management of internal organs workings such heartbeat, breathing, digestion and

blood circulation (touch the wrist do feel the blood circulation); Imagination (close your eyes and imagine you own the biggest bank in Zambia); Reactions to emotional stimulation (do you remember the last time you laughed); Automatic reproduction of activities learnt over time (are able to write he word

Entrepreneur without looking at spelling in this manual?

How Does the Mind Work?

Transforming Thoughts into Reality

The mind can change thoughts into reality. You remember that one of the functions of theconscious mind is to enable you make decisions and the main function of thesubconscious mind is to automatically reproduce any action repeated over time. Thedecision making and reproduction of repeated action combined transform thought into

reality. If you think that you will fail you will indeed fail but if you think that you willsucceed you will.

The Mind Does not Make Judgments

The subconscious mind works only after you have given it instructions through yourdecisions and thinking. Before the subconscious mind turns thoughts into reality it firsthas to receive instructions from your thinking. However, it does not judge your thoughtsto be bad or good. It is neutral. If you were worried about something so much have younoticed that that which you were worried about does really happen. So, instead of youspending time worrying use it to create solutions.

The Mind sees No Difference between Real and Unreal

The subconscious mind does not tell the difference between reality and imagination. Youmust have observed that some people are frightened of the lion whether they see it rightthere or they are told of the story.

The Mind Understands only Positive Instructions

The mind only recognizes positive language. When a positive message in thoughts is sentto the subconscious mind it is carried out as it is. However, when a negative instructionsof thoughts is sent to the mind it changes it into a positive message. If you say, I want tobe a business person, the mind will carry out even when you do not have money. It willshow you how to source for funds. How does the mind change the negative message to apositive one? A negative message like, I dont want to be a loafer will be turned into, Iwant to be a loafer. The removed word is Dont.

The Mind needs to know that your Goal is Possible

You must convince your subconscious mind that your goal is achievable. If you haveconvinced and committed to the goal, your mind will know that it is possible and willguide your actions, behaviour and decisions towards your goal.

The Mind Will Attract Everything to Meet Your Goals


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The mind will gather everything to fulfill your goal whether constructive or destructive.Once you are focused on your goal your mind will attract to you every resource you needto meet your goal. If you want to win you will - you will think consistently on how youwill achieve the goal, you believe you will achieve, and you expect to win. For thereasons above you will collect information needed and attract people who can help

achieve your goals. However if you expect to lose you will attract all factors that willensure that you fail.

The Mind will answer All Your QuestionsThe mind has the ability of answer all questions you may ask. If you ask a negativequestions the answer will be negative, if your question is positive the answer will bepositive.

Entrepreneurial Success and Process of Positive Thinking

As an entrepreneur you must think positively and positive thinking is communicable.

People you will meet and those near you pick your mental moods and are affectedaccordingly. On your mind play around with thoughts of happiness, good health andsuccess, and you will cause people to like you and want to help you, because they enjoythe positive vibrations that your positive mind send out.

To harvest good results from positive thinking yield, you should do some inner work inthe mind. Developing a positive attitude toward life will result in a successful outcome ofwhatever you do in business. Positive attitude will also make you take any necessaryactions to ensure your entrepreneurial success.

If you want to reap from positive thinking it is not enough to sparingly say few positivewords and spent much of your time crowding your mind with negative thoughts. Tosuccessful apply positive thinking; your entrepreneurial goal has to be your main mentalattitude.

In entrepreneurship, there are benefits and their challenges too. As a person intending tostart your own business you have a choice to flood you mind with positive or negativethoughts. However, if you really want to succeed in business few word of advice arehandy:

Cover you inner dialogue with thought and feelings of happiness, strength andsuccess

Avoid negative thoughts of losses in business and swap them with constructivehappy thoughts.In discussions with employees, suppliers, customers and advisors use words thatsuggest scenes of strength, happiness and success in their minds.Visualise with concentration and belief the pleasant outcome of your plan or actionbefore you prepare or start;

Disasters in the world were there and will always be there. If you have no power todo anything constructive do not kill yourself with worries;Show confidence and self belief in your in your dealings with other peopleEngage in physical exercise it helps in developing a positive attitude.


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.

Summary

We discussed that all of our feelings, beliefs and knowledge are based on our internal

thoughts, both conscious and subconscious. The mind can be conditioned to thinkpositively to bring desirable changes to life. The mind is the seat of intelligence andmemory. The mind is divided into two parts of activities known as Conscious Mind andSubconscious Mind. Positive attitude can make one take any necessary actions to ensureentrepreneurial success.

Exercise


1. What is the positive thinking?2. What are the differences between the conscious and subconscious mind?3. How can positive thinking help you create a successful enterprise?

Reference Materials:

1. Hill Napoleon; Positive Action Plan How to Make Every Day a Success,Piatkus, London, 1996;

2. Mathew Sartwell, NapoleonHills Keys to Success; Piatkus, London, 1995;


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2.1.4 IMAGINATION, INNOVATION, CREATIVITY OF AN ENTREPRENEUR

Introduction

Entrepreneurs apply imagination, creativity and innovation to develop new ideas that areapplied to create solutions to problems and opportunities to improve the quality of life.New needs will emerge and it will require the exploitation of the entrepreneur to createnew solutions.



1. Describe the concepts of imagination, innovation and creativity;

2. Apply the concepts of imagination, innovation and creativity to entrepreneurship

Topics

This session will cover the following topics

i. Describe the concepts of imagination, innovation and creativity;ii. Apply the concepts of imagination, innovation and creativity to entrepreneurship

Description of Imagination, Innovation and Creativity;

Imagination

Entrepreneurs use their imagination to create a picture of a successful business deliveringuseful products and services to customers at a profit. The term imagination comes fromthe Latin verb imaginari meaning "to picture oneself." Imagination is a mental creationin the mind of ideas and pictures of things that are not real or not heard, seen, smelt ortouched.

As an entrepreneur you can apply imagination to:

Generate business ideas;

Solve business problems;

Create new ways of doing things

Creativity is the ability of coming up with new ideas and ways of solving problems andexploiting opportunities. You and I can be creative. All of us have brains. It is the brainthat is the centre of creative power. The brain has two sides, the left and the right sides.The left side of the brain has a job of processing information in a step by step fashion.The right side of the brain processes information intuitively all at once relying more onimages. As an entrepreneur you can use the left side to select one business idea and usethe right to generate as many ideas as possible.


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To be creative you need to utilise more of your right side of the brain. You can becreative by:

Always asking if there is a better way;

Challenging custom, routine, and tradition,

Being thoughtful;

Thinking a lot to generate a lot of ideas knowing one of them will work; Seeing an issue from a different viewpoint;

Seeing mistakes as lay by to success;

Realising that there may be more than one answer to a problem,

Seeing problems as a source of new ideas;

Connecting unrelated ideas to a problem to generate innovative solutions;

Looking at issues from a broad view

You can use your creative power to create a new market and a new customer.

Innovation

Innovation is defining term for entrepreneurs. Innovation can be found in business,political, social, and technological sectors. Taking up ideas, developing new solutions tosolve peoples problems is innovation. Innovations can be found in the technical andsocio-economic field. The creations of insurance, banking, hire purchase, micro finance,trade unions are socio-economic innovation while the cell phone, email, and internet aretechnical innovations.

As an entrepreneur you can bring innovation in the following areas:

New products;

New ways of making a product;

New ways of packaging a product or service;

New ways of marketing the product;

New ways of selling the product;

New ways of pricing the product;

New ways of storing a product;

New ways of caring for customers.

However, for an innovation to be successful it must be linked to the customer needs. Nomatter how nice the innovation is, if it does not meet the customers needs then freeze it.

Peter F. Drucker a well known expert on Management has suggested a five stage

approach to purposeful systematic innovation as follows: Start by analysing opportunities within the enterprise, industry and the external

environment, Innovate for now

Look at the financial implications but also get a feedback from suppliers andcustomers,

Be simple and focussed;

Start small;

Be dominant in a particular field and take leadership.


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Imagination is the power of the mind to create unreal images and ideas that can be a basisof creation. Everything as somebody said is created twice; in the mind and in the hands.Creativity is the ability to generate a number of ideas. Innovation is the process ofcreating value for customers by coming up with better products and services

Summary

In this session we defined imagination as a mental creation in the mind of ideas andpictures of things that are not real or not heard, seen, smelt or touched; creativity as theability of coming up with new ideas and ways of solving problems and exploitingopportunities and taking up ideas, developing new solutions to solve peoples pr

entrepreneurship development workbook for learners

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