Entrepreneurship

1. Entrepreneurship
Training
T-hub Innovation Center

2. Unit 1. Preparing for business
Session 1.1 Preparing for business:
1-What is a business?
2-Why start a business?
3-What is your motivation for starting a business?
4-Meet an entrepreneur and hear his/her story

3. What is a business
Business is a set of integrated set of legal activities, which are
conducted and managed for the purpose of earning money
 Legal activity eg. Robbery and kidnapping is not legal business.
 An integration link among the activities
 Managed and controlled by someone
 Purpose of earning profit
Business is an economic activity that involves the exchange,
purchase, sale or production of goods and services with a
motive to earn profits and satisfy the needs of customers.

4. Types of business
SERVICE BUSINESS: Provide service to its customers instead of selling goods. IT, education,
consulting, entertainment, media, infrastructure, financial services, hospitality,
logistics medicine, wellness etc.
PRODUCT BUSINESS: sells goods to its customer eg: food, groceries etc.
In marketing, a product is an object, or system, or service made available for
consumer use as of the consumer demand; it is anything that can be offered to a
market to satisfy the desire or need of a customer
MANUFACTURING BUSINESS: a business that uses components, additional parts, or
raw materials to make a finished good.
E.g: automotive companies, bakeries, shoemakers and tailors, as they all create
products, rather than providing services.

5. Business Entity and types
of entity
Business Entity: is an organization created by an individual or individuals to conduct business
that aims to make a profit.
When beginning a business, you must decide what form of business entity to establish eg: sole
proprietorship, partnership and company.
1- sole proprietorship a business owned and managed by single person.
 It owned by single person
 Capital is invested in the business by its owner.
 Profit belongs to the owner
 Managed by it owner.

6. Partnership: a form of business where two or more people share ownership, as well as
the responsibility for managing the company and the income or losses the business
generates.
 Owned by two or more persons
 Capital is invested by it partner
 Shared profit on agreed ratio
 Managed and controlled by its partner
Company: is a legal entity formed by a group of individuals to engage in and operate a
business.
The persons who invested in the company know as shareholder.
 owned by shareholder
 Capital of company provided by its shareholders.
 Profits is divided among shareholders in the form of dividend.
 Companies are managed by professional managers.

7. Why starts a business?
People may have different reasons for starting an enterprise, some do it to earn money,
some have a good idea that they want to develop into a living, and others again just want
to be an entrepreneur.
Passion.
The passion you feel as an entrepreneur – for the startup life, for your company, for your
vision – is all-encompassing.
Desire To Be A Boss
Some entrepreneurs start their own business because they want to be their own boss and
in charge of all of the day-to-day operations of a company.
Financial Need
Some entrepreneurs are driven to start their own company out of necessity.

8. Changing The World.
Not every business has the potential to change the world, but many entrepreneurs take this mantra
to heart. Lots of entrepreneurs believe their businesses will change the world.
Self-Fulfillment
If you feel that your company is not utilizing your talents properly, starting a business can allow
you to maximize your abilities and create a sense of fulfillment. For example, if you’re a police
officer whose investigative skills are not being put to the test, you could consider starting your own
investigative agency where you can make full use of your abilities.
Business Involvement
An entrepreneur is sometimes motivated to start a business because he has the desire to become
involved in all aspects of company’s operation.
Money:
There’s no question that money is a motivating factor, although it belongs at the bottom of the
list.

9. Group discussion
Discuss the following questions:
1.Why you want to start a business?
2. What are the good things about starting a
business?
3. Which challenges may a person face when
starting a business?

10. Meet an entrepreneur and hear his/her
story
Jack Ma is the co-founder of Alibaba Group, which started as an e-commerce
company and has now transcended into a multinational tech conglomerate.
Formerly an English teacher, Ma founded Alibaba.com in 1999 with 17 co-
founders in a small apartment in Hangzhou city of eastern China.
Alibaba's Jack Ma not only made waves in the media for his advancements in
digital commerce, but for the riches his hard work brought him. In 2014 his
net worth was estimated to be a whopping 21.8 billion, according
to Bloomberg Billionaires Index, making him the richest man in China at the
time.
His story: https://youtu.be/IE9rrKhSFi8

11. Amina Hersi Moghe is a Somali entrepreneur. She has launched
several multimillion-dollar businesss in Kampala, Uganda. She launched
the first sugar factory in Northern Uganda. Atiak sugar factory will not
only bring revenue and development for the region but is championed
as the first large scale industrial business for Northern Uganda.
She is also one of the city's largest distributors of cement and other
hardware materials. With successful business ventures throughout
Uganda she has become a beacon of hope and a motivating role model
for young African girls.
Her story: https://youtu.be/SMPwjJnePGc

12. Which type of business is more
suitable for you?
If you choose a business based on your work experience, technical
skills, knowledge of business practices, hobbies, social ties and
family background, etc., there is a greater chance that you will
succeed.
Consider the following examples:
Hasan has been working for a courier company for many years. He
learned how to manage the courier business and how to develop
the required networks. He is considering opening up his own
courier service to operate in his country and the East African
region.

13. Maria has grown up in a farmer’s family. Her parents grow
seasonal vegetables to sell to the local retailers. Maria has
graduated from the Agricultural College. She knows
various planting techniques and is enthusiastic about
promoting the planting, sales and consumption of organic
foods in her community. Maria decides to grow organic
vegetables on her parents’ farm and to sell the products
through their retail network.

14. Session 1.2 Businesses in your
community
Community businesses can be any type of business that
trades products and services such as shops, transport,
farms, hubs, gardens run by local people for the benefit of the
local community. There's a growing movement of communities
taking back control of their local areas through business.