3. The Entrepreneurs Age
Some of the most significant factors that have
led to this age of entrepreneurship include:
Entrepreneurs as heroes( as model to follow)
Entrepreneurial education
Universities and colleges should include it
in course study
Demographic and economic factors
Shift to a service economy
Technology advancements
Independent life style
International opportunities
4. Entrepreneurship is an art of planning, managing,
organizing, and analyzing a business undertaking
assuming the risk for the sake of profit.
Entrepreneurs are people that notice opportunities and take
the initiative to mobilize resources to make new goods and
services.
Intrapreneurs also notice opportunities and take initiative to
mobilize resources, however they work in large companies
and contribute to the innovation of the firm.
Intrapreneurs often become entrepreneurs.
5. Entrepreneurship: It is a philosophy or process through which
an entrepreneur seeks innovation and employment.
Entrepreneur Entrepreneurship Enterprise
Person Process or Philosophy Object
Entre – enter Pre – before Neur – Nerve Centre
Entrepreneurship can be described as a creative
and innovative response to the environment
6. Analyzing Outcomes
Internal Locus
They control their own success or failure; that the success
or failure is not the result of chance or fate
Believe :- that they are responsible for their own success.
- events in their life are primarily a result of their
own action actions;
- Eg.student grade (when receiving exam results,
people with an internal locus of control tend to
praise or blame themselves and their abilities)
External Locus
…believes that they do not have control over their own
success or failure.
Believe that external forces, like luck, determine their
outcomes.
-Eg.student grade; their belief that their teacher was
biased and that was why they failed their exams; for
their poor performance.
7. Entrepreneurship Training Workshop (ETW)
promotes behavioral changes that helps
Entrepreneurs put their ideas into action and helps
fledgling business to grow.
Its objective is to develop entrepreneurship.
The Entrepreneurs see
Objectives
Firs steps
Opportunities
Other see
Problem
Vicious circles
Choose and Confusion
8. Motivation
֍is defined as “ the extent to which persistent effort is
directed to ward a goal”
֍ The term motivation describes why a person does
something
֍ It is the driving force behind human actions.
֍ Motivation is the processes that initiate, guides, and
maintains goal-oriented behaviors.
֍ It serves as a guiding force for all human behavior
Three types of motivation
Achievement
Affiliation
9. Achievement
Set and accomplishes challenges risks
Takes calculated risk
Likes to receive regular feedback on their progress and
achievements
Like to work alone
Affiliation
Wants to belong to the group
Doesn't like high risk or uncertainty
Prefer collaboration over competition
They have a need to like other people and want others to like them.
Power
… wants to control and influence others.
Likes to win agreement
10. Understanding motivation can:
Increase your efficiency as you work to word your goals
Drive to take action
Encourage you to engage in health-oriented behaviors
Help you avoid unhealthy or maladaptive behaviors,
such as risk-taking and addiction
Help you feel more in control of your life
Improve your overall well-being and happiness
11. Behavior
Types of Motivation
Extrinsic Motivation
Factors in the external environment such as, Supervision,
benefits, and job perks
Incentive, Power and Affiliation
Intrinsic Motivation
Relationship between the worker and the task
Learning, Attitude, Achievement and creation
Motivation
driving force
initiate and directs
12. PEC :- it is the character traits that an entrepreneurs
should possess to become successful
The three clusters of PECs:
Achievement
Accomplished successfully by means of
exertion, skill, practice or perseverance
Planning
Is the process of thinking and organizing the
activities required to achieve a desired goal
Power
Is the ability to influence the behavior of people
13. 10 Personal Entrepreneurial Competencies (PECs):
opportunity seeking,
persistence,
commitment to work contract,
risk-taking,
demand for efficiency and quality,
goal setting,
information seeking,
systematic planning and monitoring,
persuasion and networking,
self-confidence.
14. Achievement Cluster
opportunity seeking,
persistence,
commitment to work contract,
risk-taking,
demand for efficiency and quality.
15. Corresponding behavior of PECs
Opportunity seeking
Being active in finding openings in the environment which can be
used in different ways
to start a business,
to create a new market or improve business operations.
Acting and grabbing new business opportunities even in the most
problematic and hopeless situations Doing things before asked or
forced by the events.
Acting to extend the business to new areas, products, and
services.
Seizing unusual opportunities to start a new business, obtain
financial, equipment, land workspace or assistance.
16. Persistence
Taking repeated action or switching to an alternative
strategy to meet a challenge or overcome an obstacle
Doing something continuously even though others
say that you will not succeed or that you are just
wasting your time and effort
Taking action in the face of significant obstacle
Doing something over and over again until you get
what you think you deserve
Demand for efficiency and quality
Standing up straight and not giving up even during
the hardest times when you are trying to do something
new or something difficult
Taking personal responsibility for the performance
necessary to achieve goals and objectives.
17. Commitment to work contract
Giving much time and attention to something because
you believe it is right and important
Taking full responsibility and having the job done
efficiently to create a delighted customer
Making a personal sacrifice or expending extraordinary
effort to complete a job
Pitching in with workers or in their place to get a job
done
Striving to keep customers satisfied and placing long-
term goodwill over short-term gain
Being able to meet a deadline
18. Risk-taking
Taking risk at any of risk-taking behaviour: from high risk-
taking or moderate risk-taking to low risk-taking
Deliberately calculating risks and evaluating alternatives
Making a personal sacrifice or expending extraordinary
effort to complete a job
Pitching in with workers or in their place to get a job done
Striving to keep customers satisfied and placing long-term
goodwill over short-term gain
Doing something that can result in anything unpleasant or
dangerous
Taking the chances to do something which is out of your
comfort zone
Taking action to reduce risks or controlling outcomes
Placing self in situations involving a challenge or moderate
19. Demand for efficiency and quality
Demanding quality and efficiency not only from
himself but also from workers and suppliers
Finding ways to do things better, faster or cheaper
Working without errors and without wasting the time,
money and energy
Giving quality products and the best services to
customers that equates to a good business
Acting to do thing that meet or exceed standards of
excellence
Developing or using procedures to ensure that work
is completed on time or that work meets agreed-
upon standards and quality
21. Goal setting
Planning every action and carefully making
decisions based on where he wants to go
Setting goals and objectives that are personally
meaningful and challenging
Articulating clear and specific long-range goals
Setting measurable short-term objectives
Gathering information from relevant resources,
which is critical to the formulation of different
business strategies
-Should always have clear and specific
objectives– a long- term and short-term
objective—
-they are guided by the word SMART
22. Information seeking
Gathering information from relevant resources,
which is critical to the formulation of different
business strategies.
Seeking direct response, feedback
Personally, seeking information from clients,
suppliers or competitors
Doing personal research on how to provide
product or service
Consulting experts for business or technical
advice
23. Systematic planning and monitoring
Planning by breaking large tasks down into
time-constrained sub-tasks
Revising plans in light of feedback on
performance or changing circumstances
Keeping financial records and using them to
make business decisions
24. Ways that are used by the entrepreneurs to exercise
Systematic planning and monitoring
Learn from mistakes
Constantly review performance
Concentrate on present situations
Go back and review goals
If still unproductive, accept changes, but find other means
to achieve goals
Tries to change environment if the environment is the
cause of the low standard performance
26. Persuasion and networking
Using deliberate strategies to influence or
persuade others
Using key people as agents to accomplish
own objectives
Acting to develop and maintain business
contracts
27. Self-confidence
Trusting his own skills and embracing his own
imperfections
Completing any task or activity easier because of
self-awareness and faith in personal abilities
Solid self-belief
Seeking autonomy from the rules or control of
others
Striking with own judgment in the face of
opposition or early lack of success
Expressing confidence in own ability to complete
a difficult task or meet a challenge
30. What are goals and objectives?”
Goals are general guidelines that explain what you want to achieve in your
community.
They are usually long-term and represent global visions such as “protect
public health and safety.”
Objectives define strategies or implementation steps to attain the identified
goals.
Unlike goals, objectives are specific, measurable, and have a defined
completion date.
They are more specific and outline the “who, what, when, where, and how”
of reaching the goals.
Objectives are developed to help achieve goals by dividing them into
manageable components
34. Information Seeking
Personally seeks information from customers,
suppliers and competitors
Does personal research on how to provide a
product or service
Consults experts for business or technical advice
35. QOUTES
“ Information is power.”
“There are no foolish questions, only fools
who don’t ask questions.”
ካሞኝ ደጃፍ ሞፈር ይቆረጣል
ካለመጠየቅ ደጅ አዝማች ይቀር
36. Systematic planning and monitoring.
Plans by breaking large tasks down
into subtasks with clear time-frame
Revises plans in light of feedback on
performance or changing circumstances
Keeps financial records and use them to make
business decisions
37. The good objective criteria is ″SMART″
Outcome to be achieved in the future
Action in the present
Activity
Objective
39. Opportunity seeking and initiation
Does things before being asked or forced to by
events
Takes action to extend the business into new
areas, products or services
Seizes unusual opportunities to start a new
business, obtain financing, equipment, land,
workspace or assistance
43. Quality definitions
Quality results from the conviction that anything
can be improve
Quality usually comes from lack of satisfaction with
the way things are being done, people concerned
about Quality believe that there’s always a better
way to do something;
Quality means being proud of what you do,
consistent about what you manufacture or sel.
Quality means respect;
44. …Contd.
Quality is not a technical aspect or an ability.
It is a state of mind. It is a passion. It appears
in every thing you do, all the time. Concern
for quality is part of the entrepreneur's
living;
Quality demand persistence.
45. Demand for Efficiency and Quality
Finds ways to do things better, faster and cheaper
Acts to do things that meet or exceed standards of
excellence
Develop and uses procedures to ensure that work
is completed on time and that work meets agreed
upon standards of quality
46. QOUTES
" We would be much better if we did not want
to be extraordinarily good.“
Sigmund Freud
“ Great is the main enemy of good.“
አምራለዉ ብላ መሰለች ጦጣ
52. Persistence
Take action when facing significant obstacles and
challenges.
Acts repeatedly or switches to alternative
strategies to meet a challenge or over comes an
obstacle
Makes a personal sacrifice or extra ordinary effort
to complete a job.
53. Commitment
Takes personal responsibility for solving problem
that may hinder accomplishing the task under the
stated conditions
Pitches in with employees, or takes their place if
needed, to complete a task
Strives to keep customers satisfied and places
long-term good will above short-term gain
54. QOUTES
" Success in business depends 10% from inspiration
and 95% from perspiration."
" To do something and fail is experience,
Real failure is not doing anything at all."
" Failure is the first step on the road to success."
57. Persuasion and Networking
Uses deliberate strategies to influence and
persuade others
Uses key people as agents to achieve own
objectives
Takes action to develop and maintain a
network of business contacts
58. Independency and self-confidence
Seeking autonomy from the rules and/or control
of others
Keeps own point of view even when facing opposition
or initially negative outcomes
Expressing confidence in own ability to
complete a difficult task or meet a challenge
59. Difference between the situations
Authority
Clear responsibility
Simple task;
Resources.
Lack of Authority
Obscure responsibility
Complex task;
Obstacles.
60. Power definition
Power is the ability of having things done
when and how one wishes… of molding
changes in the world … of obtaining
cooperation and action
66. BUSINESS PLAN
What is a BP?
A business plan is a document that describes the
objectives of a business and which steps should be
taken to make the goals achievable, reducing risk and
uncertainty
What is the BP useful for?
To determine the feasibility and potential outcomes of
the venture, considering marketing, financial and
operational aspects;
To clear the opportunities and establish the future
outcomes of the venture;
To identify the necessary resources for starting the
operations of the new business;
67. …Contd.
To develop ideas on how should the business be
conducted;
To analyze future scenarios for the venture:
To refine strategies and avoid mistakes;
To assess the present stage of the company, and provide
a reference for future comparison;
As a milestone for strategies planning, commercial
decisions, operational forecasts and budgeting the new
decisions;
As a tool for negotiating with partners, suppliers and
customers, and also to contribute for obtaining banking
credit access.
68. What is the BP destination?
The company;
Partners;
Suppliers;
Clients;
Investors.
69. What should a BP identify?
Market;
Product or service;
Potential risks and problems;
Long-term profits;
Cash flow needs;
How should the business be conducted;
The entrepreneur's credentials to run the
business.
70. BUSINESS PLAN CONTENT
Executive Summary;
Market analysis;
Marketing Plan;
Operational Plan;
Financial forecasts.
71. Executive Summary
The main points of the BP
Business description;
Main products/ services;
Main clients;
Total assets, gross revenues projection and expected
profitability;
Estimated ROI and Breakeven point;
Entrepreneur’s introduction.
73. MARKETING PLAN
Main products of services;
Prices and conditions for acquisition;
Promotional strategies;
Commercial Structure;
Business/ Stores location.
77. SCENARIO ANALYSIS
To analyze aggressive and conservative
projection, probable outcomes and preventive
actions needed;
Main outcomes to be considered;
On the first semester / year-sales below the
forecast,
Delays on starting the activities;
Marketing strategies failure;
Financial resources needs above the predicted
budget;
Unpredicted competitors reaction.
78. BP ASSESMENT
Assess the data – remember that your BP should answer
properly to the question Is it worth to start this
company?;
The BP should be periodically evaluated – to verify if the
forecasts are being fulfilled, and the reasons if not /
possible consequences for that;
The BP should be adapted to new realities