ENTREPRENEURSHIP.pptx

THE DIFFERENT QUESTIONS OF ENTERPRENUERSHIP. (PWTI) FOR TCWLE
2019/2020.
QUESTION; 01.
(a) Define the entrepreneurship.
(b)Explain theories of entrepreneurship.
(c)Explain types of entrepreneurship..
Entrepreneurship is the process of designing, launching and running a new
business, which is often initially a small business. The people who create these
businesses are called entrepreneurs.
Entrepreneurship has been described as the "capacity and willingness to
develop, organize and manage a business venture along with any of its risks to
make a profit. While definitions of entrepreneurship typically focus on the
launching and running of businesses, due to the high risks involved in
launching a start-up, a significant proportion of start-up businesses have to
close due to "lack of funding, bad business decisions an economic crisis lack of
market demand or a combination of all of these.

The following are the theories of entrepreneurship due to the following reasons from
the different scholars as follows
• The following are the theories of entrepreneurship due to the following reasons from the
different scholars as follows.
• Economic theories of entrepreneurship;
• The economic theory is among the main economic theories of entrepreneurship means that this
theory asserts that the economy and entrepreneurship are closely linked together. Also
Entrepreneurship and economic growth can only work when the economic conditions are
favorable. Such that it is usually hard for entrepreneurs to realize growth when the economy is
doing poorly. This theory further states that entrepreneurs find motivation in the presence of
economic incentives which include industrial policy, policies of taxation, financial and resource
sources, availability of infrastructure, investment opportunities, marketing opportunities,
availability of information regarding the conditions of the market and technology among others .
An entrepreneur is therefore a risk taker because he can never fully predict about the favorability
of the economic conditions in future.
• Sociological theories of entrepreneurship;
• This is also among the contemporary theories of entrepreneurship. It argues that the success of
an entrepreneur is affected by their social culture. They are more likely to achieve growth in
particular social settings. Among the social aspects that affect an entrepreneur include the social
values, customs, taboos, religious beliefs and other cultural activities. He or she has to conform to
the social expectations when carrying out their business.

• Entrepreneurship Innovation theory;
• This is also the top theories of entrepreneurship in Tanzania. An entrepreneur does not merely
conduct business to better their lives alone. Rather, through their activities, they are able to cause
development in the economy and the society at large. The inventor of this theory is Joseph
Schumpeter; an English Economist He argued that an entrepreneur grows by being creative and
having a foresight. One of the creative things that an entrepreneur does is introduce a new
product. A new product often comes to solve a certain problem in the society or make it more
convenient. Another innovative aspect is that in a bid to achieve growth and have more profits, an
entrepreneur introduces a new production method. Notably, enhanced production methods lead
to a reduction in the cost of production and an increase in the goods manufactured. Innovation
also comes in when an entrepreneur opens a new market. This is often done after the
identification of a growth opportunity or a void in the economy. The discovery of new sources of
raw materials and establishment of organization are also aspects of entrepreneurs being
innovators. These activities of an entrepreneur lead to the creation of jobs and accessibility of
commodities, thus improving the economy.
• Psychological theory;
• It is among of the theories of entrepreneurship According to this theory an entrepreneur
experiences growth when the society has several individuals with the necessary psychological
characteristics. These characteristics include having a vision, being able to face opposition and
having the need to achieve highly. A person can only possess these traits during their upbringing,
when they excel when they are self-reliant and when there is low father dominance.

• Theory of high achievement/Theory of achievement motivation;
• Not all people are interested in being entrepreneurs. But David McClelland argued that
people who aim to become entrepreneurs must have a need for achievement, a need for
affiliation and a need for power. These act as the basis upon which an entrepreneurial
personality is established. Achievement motivation has a lot of significance in
entrepreneurship because it is the one that leads to economic and social development.
Entrepreneurs always want to achieve success in their endeavors. The need for power
comes from the urge to gain dominance in a certain field and thus cause influence
among other people. The need for affiliation comes from the urge to motive of maintain
friendships with other people. Notably, the need for achievement stands out amongst
the others.
• Resource based theories;
• According to these theories entrepreneurs require resources to go about their
businesses. Their efforts must be combined with resources such as time, money and
labor. Failure to access resources can cause their efforts to become futile. Capital, for
instance, enables an entrepreneur to growth their business. Other aspects that can be
considered as essential resources include access to information, education and
leadership. Getting sufficient resources can be quite hectic at times and that is why
entrepreneurs are considered to be people who require working hard and smart.
•
• Opportunity based theory;
• This was among of the theory with the aim of being successful entrepreneurs grab any
opportunity they come across. These opportunities are made available through

• the changes in technology, society or culture. Notably, as these changes
occur, consumers change their preferences. An entrepreneur must
therefore take those changes as opportunities of succeeding in their
businesses. Also, technology sets a basis upon which innovation is created
and facilitated. Therefore, this theory suggests that entrepreneurs are
always on the lookout for opportunities that will enable them increase the
growth of their ventures.
• Status withdrawal theory;
• This theory argues that entrepreneurial aggressiveness can be created
when people of a certain class lose the prestige they initially had or when
they belong to a minority group. Entrepreneurship, if done correctly, can
help a person live a satisfactory and content life. Therefore, individuals will
attempt by all means to become as prestigious as they were in the past. If
they come from a minority group, they must better their lives by working
hard at being entrepreneurs. Also, being a successful entrepreneur evokes
respect from the society. Producing an innovative product or service that
will help solve various societal concerns can make a person to be highly
valued and admired by the community. As such, some people aim at
achieving this admiration, fame or popularity through entrepreneurship.

The following are the Types of entrepreneurship as follows
• Administrative entrepreneurship;
• The entrepreneurial activities under this category centered round
administrative techniques and functions. It gives a new option to handle
prevailing or future situations in a more effective way that provides
advantages and competitive edge. Total quality management job
redesigning new techniques of doing things. For example of administrative
management or management by consensus are a few of the example of
administrative entrepreneur that increases overall organizational efficiency
and that makes the firm successful and sustainable the competitive market
environment.
• Opportunistic entrepreneurship;
• There is a proverb “Hit “while the iron is hot “it is the best exhibit of the
characteristics of this category of entrepreneurship. Environmental
changes always offer new opportunistic. But everybody is not equally
capable of identifying and to utilize that opportunity in first hand regarded
as opportunistic.

• 3. Acquisitive entrepreneurship;
• The entrepreneurship that learns from other compentisie is
acquisitwe entrepreneurship. It acquires something new of values
front the competitive environment or achieves the competitor’s
technical capacities. It keeps entrepreneurship sustainable in a
competitive environment. The failure never 52restraints them from
acquisition but motives them further to discover such as thing with a
new visitor.
• Incubative entrepreneurship;
• This category of entrepreneurship generates and nurses new ideas
and ventures within the organization. It productively executes them
and ensures material gain for the organization. They pursue and help
to get differentiated technologies to promote creations and
innovations Microsoft for example Nokia in number form new
varieties types of products and creates products differentiation

• Imitative entrepreneurship;
• The entrepreneurship that imitates a goods and services operating in the
market under franchise agreement is the imitative entrepreneurship. It is
the medium that spread technology over the world. It adopts an existing
technology in countries over the world. It also adopts an existing
technology with minor modifications propriate to the local condition.
• 5. Private entrepreneurship;
• The entrepreneurship that is initiated under the private sector is private
entrepreneurship. The government gives various support services through
private and public concerns that encourage private initiative in taking
entrepreneurial ventures. Layer and mutual relationship between private
and public sectors would make economic development speedy and
balanced.
• 6. Public entrepreneurship;
• The entrepreneurship that is undertaker by the government through its
various development agencies is public entrepreneurship. All countries
developed or underdeveloped take a public initiative in venture ideas to
fulfill the initial deficiency of private entrepreneurs.

• Individual entrepreneurship;
• The Entrepreneurship that is undertaken by an individual or a family
with the personal initiative is individual entrepreneurship.
• Mass entrepreneurship;
• This type of entrepreneurship emerges in an economy where a
favorable climate of motivation and encouragement exists for
developing a wide range of entrepreneurship among general mass is
mass entrepreneurship .It increases small and medium enterprises in
a country.

QUESTION; NUMBER 02.
A).Explain all factors of production
B).Explain the role of each factor of production in entrepreneurship
C).Do you think all of this factor are important to have before one engaging in entrepreneurship
• Production, Is the action of making or manufacturing of goods from component
or raw material OR Is the process of being so manufactured
• TYPES OF PRODUCTION
• Productions have been categorized into various ways this are as follows
1.Primary production.
• 1. Primary production
• Primary production is carried out by extractive industries like
agriculter,forestry,fishing,mining and oil extraction. These industries are engaged
in such activities as extracting the gifts of nature from earths surface.
• 2.Secondary production. This includes production in manufacturing industry
running out semi finisher and finished goods from raw material and intermediate
goods. They are generally describe as manufacturing and construction of
industries.
• 3. Tertiary production;
• Industries in the tertiary sector produce all those services which enable the
finished goods to be put in the hands of consumers. Infact these services are
supplied to the firms in all types of industries and direct to consumer example
banking insurance and transport.

FACTORS OF PRODUCTIONS
• Land as a factor; Land has a broad deﬁnition as a factor of production and can take on
various forms, from agricultural to commercial real estate to the resources available from
a particular piece of land. Natural resources such as oil and gold can be extracted and
consumption from the land cultivation of crops on land by farmers. The cultivation of
crops on land by farmers increase its value and utility
• Labor as a factor; Labor refers to the effort expended by an individual to bring a product
or services to the market. Again it can take on various forms.Forexample,The
construction worker at a hotel site is a part of labor as the waiter who serves guests
Entrepreneurship factor Entrepreneurship is the secret sauce that combine all
other factors of production into a product or services for the consumer market. Example
of entrepreneurship is the evolution of social media behemoth Facebook.
• Capital as a factor; In economic capital typically refers to money. But money is not a
factor of production because it is not directly involved in producing a good or any other
service.Instead,It facilitate the process used in production by enabling entrepreneurs and
company owners to purchase capital goods or land. As a factor of production capital
refers to the purchase of goods made with money in productin.For example a tractor
purchased for farming is capital Market as a factor
• entrepreneur.
N

• B) ROLE OF EACH FACTOR OF PRODUCTION IN ENTREPRENUERSHIP
• Land The basic function of land in supporting human and others terrestrial ecosystem can be
Production of food ﬁber , or other biotic material for human use Store house of minerals and raw
material for human use Provide physical space for settlement of industry and recreation
• Labor This is human factor and the main source of consumption. The main function of labor in
production can be Labor act as a producer and it’s a mobile factor Labor serves as a basis of
exchange Labor preforms various activities in the industry and market area.
• Capital Act The instrument of production is the thing that can be used to buy machinery and raw
material Also is used in bonding stocks and shaves Market Help to meet consumer needs and
wants Ensure organization survival growth and reputation It give better product offering It
facilitate economic growth
• Entrepreneurship It enable to exploit the opportunities that exist within an economy
• (C) IMPORTANCE OF HAVING PRODUCTION FACTOR
• It’s important to have all of these factors of production before one engaging in production
because It improve economic growth raises the standard of living by lowering production costs
and increasing wages Facilitate the improvement of the efficiency of the production Facilitate
production of quality of goods In terms of land everything are handled to the land example
factories and all machinery so the land played a role of production through the reasons that made
to have before engaging in production activities.

• QUESTION; NUMBER 03.
• 3. A) Outline 25 Qualities of Entrepreneur;
• 1.Displined;This individual are focused on making their businesses work
and eliminate any hindrance or distraction They have overtiring strategies
and outline the tack to accomplish them, successful entrepreneurs are
declined enough to take steps every day toward the achievement of their
objective.
• 2. Confidence; They are confidence with the knowledge that they will make
their businesses succeed.They exude that confidence in everything they do.
• 3. Open-minded; Ideas are constantly being generated about workflows
and efficiency people skills and potential new businesses. They have the
ability to look at everything around them and focus it toward their goal.
• 4. Self-starter They set the parameters and make sure that project follow
that path. They are proactive not waiting for someone to give them
permission.
• 5. Competitive; They need to win at the sport they play and need to win at
the businesses that they create.

6. Creativity; Entrepreneurs often come up with solutions which are
the synthesis of other items. They will repurpose product to market
them to new industries.
7. Determination.They are determined to make all of their
endeavorssucceed, so will try and try again until it does. Successful do
not believe that sometimes cannot be done.
• 8. Strong people skills; most successor work whether they are in or
out of the workplace.
• 10 Passion; is the most important trait of the successful entrepreneur.
They are willing to put in these extra hours to make the business
succeed because they is a joy their business give which goes beyond
the money.
• 11.Drive,Energy,Optimism,Need of achievement foresight
,perceptive,versatile,knowledge,flexible,leadership behavior,
resourceful innovative hard work perseverance energy responsive to
suggestion and criticism gets along well with other like challenges risk
taking ability

• 12. Flexible; is the quality of changing self with new condition.
Entrepreneur have an open mind and always ready to adopt new
things with adaptability or use in the given situation of an economy.
• 13. Versatile; is a desired quality of the entrepreneurs a person can
turn easily or readily from one subject skill or another.
• 14. Knowledge;is the fact, information understanding and skills that a
person has acquired through Experian or education.
• 15. Perceptive; is the ability to see hear or understand thing. It is also
the way people look at or interpret something.Entrepreneus see
things differently and find things that other cannot.
• 16. Resourceful; is the ability to create and use tools and techniques
in a use full manner.it is the quality of finding ways of doing things.
• 17. Innovative; Is the quality of adding or discovering new utility with
the old product or process or system. an entrepreneur

• 18. Responsive to suggestion and criticism; is an essential leadership trait of an
entrepreneur A leader with a closed personality is an misfit for entrepreneurship.
• 19. Gets along well with others; it enquires a high level of human relations skills
a cordial person an open mind and sociability.
• 20. Leadership behavior; Entrepreneur organizes resource and engages in
uncertain ventures that he will transfer into a certain enterprise.
• 21. Like challenges; an entrepreneur must have characteristics to take the
challenge of uncertainties.
• 22. Risk-taking ability; they take their ventures in an uncertain environment of
the future.
• 23. Initiative; is the capacity and imagination to do sometimes in a new approach
or what needs to be done together with the courage and willingness to do it
especially without others help.
• 24. Energy; Refer to the mental and physical ability to effort and enthusiasm into
an activity.
• 25. Hard work; is the quality of industriousness that show a strong physical
capacity to engage in work without any lethargy
• 26. Profit-Oriented; is the commitment to the economic utilization of the
resource to ensure a profit.

3. b) Explain intrinsic entrepreneurial motivation
• 1. Desire to do something new; Entrepreneur should have a desire to
improve his/her business from where he is to above that stage.
• 2. Become independent; This means does not depend to any one in any
ways to afford his facilities like means self- sufficiency.
• 3. One’s educational background; When entrepreneur has education is
easily for her/ his to conduct entrepreneurship to any condition and any
environment.
• 4. Be recognized for one’s contribution; This means to be ready listens to
others contribution to conduct different businesses which help to improve.
• 5. Achieve what one wants’ to have in life; This means entrepreneur is able
to achivieve what wants in life like to get more income, to get more facilities
she/he can achieve with ought to depend to anyone.

3. c) Explain functions of entrepreneurship
• 3. c) Explain functions of entrepreneurship.
• a).Improve life standard; When entrepreneur get income through
entrepreneurship can afford different facilities like money for different uses.
• b).It creates employment; Entrepreneur can’t do all things alone need help from
other example labor to help his/her through this people get employment.
• c).It improve infrastructure; Entrepreneur pay tax which increases government
income which can be used to improve infrastructure like road, school and other
development activities.
• d) Increases national income; Through tax payed by entrepreneur lead to the
increase of income which can be used by the government in different activities
like building of school and hospital.
• e).It develops other sectors; Entrepreneurship lead to the development of other
sector like agricultural sectors industrial sectors and education sectors.
• f).It reduces crime rate; Entrepreneurship reduces crime through provision of
employment to the society but also creates awareness to the people who are
jobless.

Question number 4.
Motivation is the word driver from the word motive which means needs ,desire, wants or
drives within the individuals e.g. desires for money,rewards,gift
• Types of motivation
• Intrinsic motivation
• Extrinsic motivation

Theories of motivation
• 1. Maslow’s Hierarchy of Needs. According to smith &Cronje(1992) the
way Maslow's theory is explained relies on the fact that people want to
increase what they want to achieve in life and their need are prioritized
according to their importance .people work to satisfy their needs the needs
divided into,
Physiological needs-that is need for food shelter and clothing .In large parts
are these needs that push somebody to works .People tend to earn money in
order to fulfill their needs so if they will be provided by this needs they will
be motivated to work.
Safety –they needs security in the against hazard and job security so people
will motivate to work to place have job security
Social-in this it involve need for belonging(acceptance by others) giving and
bring friend ship and love
Esteem needs-need of respect by others and since of accomplishment and
achievement.
Self-actualization needs; The need to develop to one’s fullest potential.

DOUGLAS MCGREGOR
• Douglas McGregor observed that managers attitude generally fall into one
of two entirely different set of managerial assumption, which he called
theory X and theory Y.
• Theory X.
• The average person dislike work and will avoid if possible Because people
don’t like to work they must be controlled, directed or threatened with
punishment to make an effort
• Theory Y.
• Work is naturally play or rest people want to work and can be self-
directed and self controlled work can be motivated using positive
incentives and will try hard to accomplish organization goal if they believe
they will be rewarded for doing so
• Under proper condition the average person not only accept responsibility
but seek it out .most work have relatively high degree of imagination and
creativity to help solve problem

• 3. Herzberg's Motivation-(hygiene factor).
• Proper management of hygiene factor could prevent employee
dissatisfaction
• Good working condition for stance will keep employees at job
• poor working condition which are job dissatisfies may make employee
quit
• If you want to increase employee satisfaction to focus on motivating
factor job with many satisfier will usually motivate workers job satisfaction
and prompt effective performance
• 4. Frederick Taylors scientific management
• Development scientific approach for each element of personal job
scientifically soloct, train, touch and top workers.Encourage cooperation
between workers and managers so that each job can be accomplished in
standard scientifically determined way.
• Divide work and responsibility between management and workers
according to who is better suited to each.

• 5. Equity Theory; Is the idea which employees try to maintain equity
between inputs and outputs compared to others in similar position.
• 6. Expectancy theory; Theory that the amount of effort employees
exert on a specific task depend on their expectation of the outcome

TYPES OF MOTIVATION
1, Intrinsic motivation.
Intrinsic means something is inherent by nature it is sometimes referred to
as ‘’inner’’ which refers to something coming from within
Therefore Intrinsic entrepreneurial Motivation; It is refers to the behavior
that is derived by internal rewards. Doing business or entrepreneurship with
ought to depending or pushed by external factors.
Doing something with ought any obvious external rewards you do it because
it’s enjoyable and interesting rather than because of an outside incentive or
pressure to do ,such as reward or deadline
Example. Doing entrepreneurship by willingness.
Reading books because you enjoy reading and have an interest in the story
or subject rather than reading because you want to write report or do
examination.
Participating in sports because it’s fun and you enjoy it rather than doing it
to win an award

Factors for intrinsic
Curiosity. Pushes us to explore and learn for the sole pleasure of
learning and mastering
Challenge. Being challenged helps us work at a continually optimal
level work toward meaningful goals
Control.
Cooperation. Satisfies our needs for belonging
Recognition
Competition.
Spending time with someone because you enjoy their company and
not because they can further your social standing
Intrinsic reward is something /the good feeling when you have done a
job well.

• EXTRINSIC ENTREPRENEURIAL MOTIVATION
• Is reward-driven behavior. It’s a type of operant conditioning. Operant
conditioning is a form of behavior modification that uses rewards or
punishments to increase or decrease the likelihood that specific
behaviors will recur.
• In extrinsic motivation, rewards or other incentives — like praise,
fame, or money — are used as motivation for specific activities.
Unlike intrinsic motivation, external factors drive this form of
motivation.
• Extrinsic motivation doesn’t always have a tangible reward. It can also
be done through abstract rewards, like praise and fame.

• Examples of external extrinsic rewards include:
• competing in sports for trophies
• completing work for money
• customer loyalty discounts
• buy one, get one free sales
• frequent flyer rewards
• Examples of psychological extrinsic rewards include,
• helping people for praise from friends or family
• doing work for attention, either positive or negative
• doing tasks for public acclaim or fame
• doing tasks to avoid judgment
• completing coursework for grades

Factors for extrinsic entrepreneurial motivation
1. Government assistance and support.
2. Availability of labor and raw material.
3. Encouragement from big business houses.
4. Promising demand for the product.

QUESTION 6.
.a Explain the advantages of marketing products or services.
.b Explain strategies employed in marketing products and services.
.Differentiate between sales and marketing.
Marketing. According to dictionary Marketing is the study and management
of exchange relationships .Orit’s the business process of creating
relationships with and satisfying customers through value exchange.
According to Philip Katler:in 29 March 2011
Marketing is the science and art of exploring, creating and delivering
value to satisfy the needs of a target market at a profit.
According to the American Marketing Associations [AMA] board of directors
Is the activity set of institutions and process for creating communicating,
delivering, and exchanging offerings that have value for customers, client,
partners and society at large.
According to Jay Baer -present convince & convert; is the massage and/
action that cause massage and/action

•
ADVANTAGES OF MARKETING
Marketing widens the market; market draw out the hidden wants of
consumers, create new demands of locates the untapped area and find out
the possibilities of selling new products.
Marketing facilitates exchanges in the ownership andpossession of goods
and service; It creates time, place and possession utilities for the goods and
service. It is helpful to both producers and customers.
Marketing help in optimal utilization of resources; as the marketing efforts
widen the area of market, the producer can utilize their resources, otherwise
remaining paltry utilized to the maximum.
Marketing accelerates other activities, Because of marketing so many other
activities such as banking, transport, insurance, warehouses.
Marketing increases the national income. National income is the sum total
of good and serves that a nation possesses.
Marketing provides gainful employment opportunities. Marketing creates a
climate for more production and services.

• Marketing raises the standards of living. with the provision of more
items of necessity, comfort and luxuries, cheaper as its disposal the
community enjoys a higher standard of living
• Marketing stabilizes the economic conditions; not only set the
economy revolving but also provides steady and stable economic
conditions where all are happy .
• Marketing acts as a basic for making decision; an entrepreneur is
confronted with many problems as to what, how, when, how much
and for whom to produce?
• Marketing provide maximum satisfaction of human wants; it serves
as an effective link between the business and the society, remove
hindionces of knowledge, educate people, cultivates their mind, lures
them to buy the best and thus enable ultimately to get maximum
satisfaction.

• STRATEGIES EMPLOYED IN MARKETING PRODUCT AND SERVICES
I. Growth hacking; A marketing phenomenon popularized by startups
with tight marketing budgets, growth hacking combines creativity,
analytical thinking and social metric to sell product and gain
exposure.
II. Referral programs; A referral program is an umbrella term used to
describe a systematic approach companies take to incentivize
people to tell others about their product or services.
III. Earned media and PR; Earned media [or ‘’free media’’] is publicity
that created through effort other than paid advertising.
IV. Networking events; tradeshow remains atop B2B networking tool
[especially when inbounds tactics supports event efforts] as they
gather companies within a specific industry into one location for
demonstrating their latest products and services.
V. Search engine marketing; SEM, Is a tool that companies use to
grow their website traffic through paid online advertising.

I. Account based marketing and retargeting [ABM]; is a B2B strategy
that focuses on a targeted set of Account using highly personalized
compaigns
II. Socials media marketing;Social media marketing focuses on
providing users with content they find valuable and won’t to share
across their social networking result in increasing visibility and
traffic
III. Directly selling ;Accomplish exactly what the name suggests -
marketing and selling products directly to

• [C]Different between sales and marketing
According to different scholar,
• Sales means converting the lead or prospects and orders while
marketing is aimed at longer term sales pertain to shorter
goals.Marketinginvolves a Longer process of building a name for a
brand and pursuing the customer to buy it they do not need it.
• “According to Meredith hart” Marketing inform and attract leads and
prospects to your company and product or service. While the other
hand works directly with prospect to reinforce the values of the
company solution to convert prospects into customers.
• According to sue barrettaugust 12, 2019

MARKETING SALES
Marketing is one to many Sales is about one to one
Marketing tells the stories [of the company products etc]to many people Sales where our business becomes real for the client its where the stories
and brand come to life
Marketing looks after brands reputation Sales look after individual
Marketing analysis the big data Sales deals with the ambiguity and the details of each.

QN: 08 (a) Describe the component of business plan
(b) Prepare a business plan of your choice
A.BUSINESS PLAN : A business plan is a formal written document
contain business goals, the methods on how these goals can be
attained and the time frame within which these goals need to be
achieved. OR
A business plan can be defined as a special document which provide a
cornerstone and frame work about a business matter and all steps to
follow or to be followed.

•
THE COMPONENTS OF BUSINESS PLAN
Executive summarize; this should appear first in your business plan, it should
summarize what you except your business to accomplish, it might also be a
good idea to briefly explain why you starting your company and include
details about your experience in the industry your entering.
Company description; It is best to include key information about your
business, your goals and the customers you plan to serve. Your company
description should also discuss how your business will stand out from others.
Market analysis; this will show that you know the ins and outs of the
industry and the specific market you plan to enter. In that section you need
to use data and statistics to talk about where the market has been, where it
is expected to go and how your company will fit into it. You have provided
details about the consumers you will be marketing to such as their income
levels.

• Competitive analysis ; a good business plan will present a clear
comparison of your business to your direct and indirect competitors ,
you will need to show that you know their strength and weakness and
you know how your business will stack up.
• Description of management organization; this will outline the way
that your organization will set up, you will introduce your company
managers and summarize their skills and primary job responsibilities.
You can create a diagram that mass out your chain of command.
• Break down of your product and services; yourbusinessplanmust
start exactly what you’re planning to create and sell, how long your
products are supposed to last and how they will meet on existing
need. It is good ideas to mention your suppliers too, if you know how
much it will cost to make your product and how much money you’re
hoping to bring in.
• Marketing plan; in your business plan, it’s important to describe how
you intended to get your products and services in front of potential
clients. That what marketing is all about.

• Sales strategy; how will you sell the products your building that the
most important question your answer when you discuss your sale
strategy, it is best to be as specific as possible. Its good idea to throw
in number of sale reps your planning to hire and how you will go
about finding them and bring them on board. You can also include
sales targets.
• Request for funding; if you need funding, you can devote an entire
section to talking about the amount of money you need and how you
plan to the capital you will trying to raise
• Financial projections; you will reveal the financial goals and
expectations that you will set based on marketing research, you will
report your anticipated revenue for the first 12 months and your
annual projected earnings for the second, third, fourth and fifth year
of business if you trying to apply for a person loan or small business
loan, you can always add an appendix or another section that
provides additional or background information.

• (b) A BUSINESS PLAN FOR CLOTHING BRANDS
• Step by step guide to write a business plan Keep in mind that your business plan is
never finished, it is a living document. The markets and the needs of your potential
customers will change over time if you this fact, you will have a clear mind on your
business. Be critical and adopt your business plan if necessary, stay focused and know
that not everything will go as you expected, eventually the growth of your bland will be
positive if you keep your business plan flexible, a business plan of clothing line is a key
document with information about the description of the market, your bland story, your
product with the pricing, your marketing strategy and financial information.
• 01: Market analysis; this is research about the business market you are in the fashion
industry. The analysis is a necessary because you have to know your market and if you
can build a sustainable brand you can do a market analysis by following these steps.
• A; investigate the targeted fashion segment.
• Describe your segment and ideal customer.
• Find out the latest fashion trends.
• Which brands are popular
• B; don’t know how to find your ideal customer buy the customer blueprint.
• Find out your potential competitors.
• How many direct competitors do you have?
• Are these competitors doing good financially
• C; write down your unique selling proposition.
• What is your unique value to compete between other fashion labels.

02; Brand story; thebestbrand are built on great stories. Every great
brand tells a great story. Let’s talk about your story,
A brand story goes beyond what’s printed on your t-shirt your brand
story is what people believes about your brand based on the facts,
feelings interpretations evoked by your clothing. Your brand is just
another commodity if you don’t have a true brand story. Building a
story is about building something that people care about and what to
buy into. You can write out your brand story with follow key aspects.
a) The name of your clothing brand.
b) The tagline.
c) Value of your brand.
d) The reason why you what to launch your own clothing brand.
e) Vision; what is your brand in this world.
f) Mission; what purpose has your clothing deal.
A brand story has to be clear and understandable.

03; product, you can’t start your clothing line without knowing exactly
what you want to sell and who will want to buy it. First comes first
create your own product. You can start with a small collection after
your first release you will find out which products are trending the
most.
Follow those steps to create your own product.
Create your own design; what is your idea? What do you want to
create? If people will see your design, what should they think about it?
Draw your design digitally, and focus on ever details. Don’t have a clue
on to design clothing.
Choose the style of your clothes, which color of textile do you want?
Which style if clothes fits your brand strategy.
Find a good partner that can produce your clothes, this is a very
important step, don’t choose the most easy or cheapest producer. Find
a reliable partner that work on long term.
Price, the price of your clothes has to be right. Prices that are too low
or too high will attain in bad results. Look at your competitors.

• 04; Marketing strategy, the marketing strategy is the phase where
you decide how you will sell your clothes.
• O5; financial situation; first, you have to find out if you need
investors partner the will have to see financial numbers of course, the
second reasons is to calculate your own benefit.
• 06; Break-even analysis, set up your break-even analysis, the break-
even point is when your business expenses match your sales, your
business is viable when your overall revenue will exceed your overall
expenses.

QN 9 “A”. Explain the source of entrepreneurship ideas What is
Entrepreneurship?
Entrepreneurship is the process of designing, launching and running a new
business, which is often initially a small business. ... Entrepreneurship has
been described as the "capacity and willingness to develop, organize and
manage a business venture along with any of its risks to make a profit.
Or an entrepreneur is a person who starts a new business and usually risks
his own money to start the venture. Examples of well-known entrepreneurs
include Bill Gates, Steve Jobs, Mark Zuckerberg, Pierre Omidyar, Arianna
Huffington and Caterina Fake.
Or Entrepreneurship is defined as the act of starting and running your own
business or a tendency to be creative and wish to work for yourself in your
own ventures. An example of entrepreneurship is a person who is running his
own business.
Or So wrote the economist Joseph Schumpeter, who is often called the
"father of entrepreneurship" or the "father of creative destruction," about
innovation as outlined in his book "Business Cycles: Theoretical, Historical,
and Statistical Analysis of the Capitalist Process" which was first published in
1939.

The following are source of entrepreneurship ideas.
1. Interests and hobbies: A hobby is an activity that you enjoy doing during your leisure-time and is
one of the primary sources of business ideas. In fact, most people have founded great successful
businesses while pursuing their interests or hobbies. For instance, if you enjoy traveling, playing
with computers, music, sports, performing or cooking, you can seamlessly develop it into a
business. You can join the tourism, entertainment or hospitality industry by venturing deeper into
your favorite activity. These are just a few suggestions since there are lots of leisure activities that
can lead you to the world of successful entrepreneurship. Just consider what you are good at, and
you are ready to go.
2. Customer survey: Starting point of any new business should be the clients because their needs
and wants justify the service or product that you can offer to them. The wants and needs of the
customers are, therefore, the sources of business ideas generation and you can ascertain them by
carrying out a thorough survey. You can conduct such a survey, whether formally or informally,
through questionnaires, interviews or observation as you list the sources of business ideas that
work best for you.
While carrying out the surveys, you can talk with your friends and family to discover what the
potential customers need, yet it is not readily available to them. They may not be contented with
the existing service or product and need improvement. In this case, you can step in and talk with the
people in the distribution chain including wholesalers, retailers, manufacturers, agents, and
distributors. It is essential to prepare the questions in advance that you can use in interviews or put
on the questionnaires
The relationship you build with your potential customers during the survey leads you to new
sources of business ideas as they freely share their challenges with you. Thus, ensure that you talk
to several existing and potential customers to familiarize with them and understand their needs. Be
a good listener and observer as you show them that you care by sharing with them the possible
solutions. The more information they are willing to give you, the higher your chances of founding a
successful business.

• . Brainstorming and dreams: Brainstorming is a method of problem-solving and qualifies
as one of the seven sources of business ideas since every company focuses on offering
solutions to the problems facing the customers. The secret behind brainstorming is to
come up with as many ideas and options as possible. This process usually starts with a
problem statement or question. For instance, you may ask the question “what are the
services or products necessary in the home that are hard to get?” In this way, each
design will result in one or more ideas and lead to several opportunities for becoming an
entrepreneur. Dreams are also part of the sources of developing business ideas though
most people tend to ignore them. However, it pays to consider and follow them up as
they can lead to a booming business even if they may seem unintelligible and strange. Do
not hesitate to wake up in the middle of the night and jot down the ideas before they
disappear at the crack of dawn. While you can get ideas during the deep sleep in the
form of dreams, you can also discover the germ of a wonderful business idea as you
meditate during the night when you lose sleep.
• The rules of brainstorming
• Here are the rules that will help you when brainstorming for different sources of business
ideas:
• Never judge or criticize the ideas and suggestions of others
• Encourage freewheeling and invite crazy or wild ideas
• Quantity is paramount where the more the number of ideas, the better
• Combine and develop the ideas that friends and colleagues give you
• Never procrastinate

• 4. Franchises; A franchise is a situation where a sole trademark distributor
or manufacturer of a product gives exclusive rights to independent retailers
for local distribution. This is done in return for the consistency of the
retailers to the set operating procedures and payment of royalties. As one
of the sources of business ideas for entrepreneurs, franchising can take
different forms but the most common and preferred one is where you are
offered the image, operating procedures and the name of an established
business. Besides buying a franchise, you can also build on and sell its
concept at a profit.
• 5. Mass media; the mass media; including television, newspapers, Internet,
radio, and magazines are a great source of ideas, information, and
opportunities. One way to become a successful entrepreneur is taking a
careful look at the advertisements and commercials in these media. By
reading a magazine or newspaper, you can easily come across a business
for sale that interests you. These media can also report on the trending
fashion, and pressing customer needs that you can jump on and start a
business. If, for example, you find out that there is a high demand for
physical fitness and healthy eating practices, you can start a fitness and
healthy eating centre .While traditional media including television, radio,
and newspapers

6. Personal experience and talents; Most of the ideas and opportunities for successful
businesses are a result of the experiences in the place of work. For example, an
experienced manager working for a leading restaurant can eventually decide to start a
business related to hospitality even before he retires. As a potential entrepreneur,
therefore, you can make the most use of your skills and experiences as crucial sources of
business ideas generation. They also determine the type of venture that you start as you
capitalize on them. If you are gifted or have experience in a specific field, then it is time to
analyze just talent or skills. You can start off with the following self-examination questions:
7. Trade fairs and exhibitions; Trade fairs and exhibitions are among the top sources of
developing business ideas. They are usually advertised on the Internet, radio, and
newspapers, and by attending such events regularly, you will discover new services and
products. You will also meet with manufacturers, sales representatives, distributors,
wholesalers, and franchisers who will answer all your questions and inspire you to start a
business that will thrive. In fact, some of them may be Of someone like you to partner
with, and this will be an exceptional opportunity to partner with renowned entrepreneurs
and franchisers.
Sound business ideas from reliable sources of new ideas for business become good
investments when implemented. Hence, business visionaries and potential entrepreneurs
must brainstorm on the ideas that can lead them to a well-organized and successful
business that meets the needs of the clients and promote the economy of the society.
Business idea generation, therefore, helps you identify the opportunities, the people or
companies to partner with and your competitors.
As you compare the different sources of business ideas and the available opportunities,
you can easily go for an idea that involves insignificant risks and no possible failure at the
starting stage. You also get to know the latest technology that will be appropriate for your
communications with clients, suppliers, distributors, and partners. When all is said and
done, you get to know how to respond to the ever-changing needs and fashions.

• “B” Why do you think most of Tanzania are not entrepreneurial, in
nature competed to those in Kenya and Uganda.
• 1. Cash flow management; Cash flow is essential to small business
survival, yet many entrepreneurs struggle to pay the bills (let alone
themselves) while they’re waiting for checks to arrive. Part of the
problem stems from delayed invoicing, which is common in the
entrepreneurial world. You perform a job, send an invoice, and then
get paid (hopefully) 30 days later.
• 2 Marketing strategy; Positioning your product or service in such a
way that you will maximize on the returns is proving to be a challenge
to many entrepreneurs. This is because some entrepreneurs are
venturing into their projects completely ignorant of the Dos and
Don’ts. It is therefore recommended that you contact a proper
research and if possible have a hands-on case study. Don’t just invest
blindly.

3. Lack of Capital; Want to start or grow your business, but you have little capital to
do it with. Here, patience and proper discipline is required when it comes to cash
management. It is always estimated that your business won’t pick up in the first
three to four months. Therefore, a little patience is required. You can also get
investors or apply for a quick loan to get you started.
4. Criticism and self-doubt; As a young entrepreneur, you will find that not
everyone will take you seriously. They will tell you that you are too young to build a
successful business. They will be quick to tell you just what they think you are doing
wrong. At times, the criticism and the self-doubt it fosters might get to you. As your
business struggles to get off the ground, you could start to doubt yourself.
5. Finding Customers; Even if you offer the best-quality product or service available
in the market today, your chances of failure will be high if you don’t find loyal
customers. Sometime people had no experience to look for customer or how to
gate customer thus why they end to fail. Or Advertising may help you find people
who will really be interested in your product or service. If you don’t have money for
ads, try to find customers within your circle of friends or family members. Let them
spread the news to their friends as well.
6. M Building a Successful Team; Hiring employees isn’t as easy as it seems. You
don’t hire them for a week; you hire them for years. They should be loyal, love their
job, and agree on the paycheck you offer. It’s also important that you respect your
employees and treat them like your colleagues and friends.

Business ownership refers to the control over an enterprise providing the power to dictate the
operations and functions.
Or a business owner is the legal proprietor of a business. An individual or group that owns the
assets of a firm and profits from them means a business owner is the legal proprietor of a business.
While individual or group that owns the assets of a firm and profits from them. Businesses can be
acquired in several ways such starting a new business, franchising an existing business, buying an
existing business.
For example if you choose to start your own business, this is one of the ways to become a company
owner.
This process comes with several key benefits.
retaining complete control over the company, and
Business owners can also introduce new services and products, plans for expanding the business,
and other aspects of growth and success.
One of the Types of Business Ownership is a
Sole Proprietorship means when a business is owned and operated by a single person, it is a sole
proprietorship. This business formation is the most common among business owners in Tanzania
and Most small companies start as sole proprietorships. This type of company is owned by a single
person, who is typically responsible for the day-to-day operations of the business. A sole
proprietorship does not exist as a legal entity, separate from its owner. This means that the business
owner is personally responsible for all obligations and debts. The owner also keeps all business
profits. A sole proprietor owns the business assets and all of its profits. This individual is also
completely responsible for any business debts and liabilities.

The following are the several advantages of business ownership as
follows include:
Being a business owner can be extremely rewarding: means by having
the courage to take a risk and start a venture is part of the American
dream. Success brings with it many advantages.
Independence: As a business owner you are your own boss. You cannot
get fired. More importantly you have the freedom to make the
decisions that are crucial to your own business success.
Lifestyle: Owning a small business gives you certain lifestyle
advantages. Because you’re in charge, you decide when and where you
want to work. If you want to spend more time on nonworking activities
or with your family, you don’t have to ask for the time off. If it’s
important that you be with your family all day, you might decide to run
your business from your home. Given today’s technology it’s relatively
easy to do. Moreover it eliminates commuting time.

The following are the several advantages of business ownership as follows include:
Being a business owner can be extremely rewarding: means by having the courage to take
a risk and start a venture is part of the American dream. Success brings with it many
advantages.
Independence: As a business owner you are your own boss. You cannot get fired. More
importantly you have the freedom to make the decisions that are crucial to your own
business success.
Lifestyle: Owning a small business gives you certain lifestyle advantages. Because you’re in
charge, you decide when and where you want to work. If you want to spend more time on
nonworking activities or with your family, you don’t have to ask for the time off. If it’s
important that you be with your family all day, you might decide to run your business from
your home. Given today’s technology it’s relatively easy to do. Moreover it eliminates
commuting time.
Financial rewards; In spite of high financial risk, running your own business gives you a
chance to make more money than if you were employed by someone else. You benefit
from your own hard work.
Learning opportunities: As a business owner, you all be involved in all aspects of your
business. This situation creates numerous opportunities to gain a thorough understanding
of the various business functions.
Creative freedom and personal satisfaction: As a business owner, you all be able to work
in a field that you really enjoy. You all be able to put your skills and knowledge to use and
you all gain personal satisfaction from implementing your ideas, working directly with
customers, and watching your business succeed.

The following are the disadvantages of business ownership as follows.
Financial risk: The financial resources needed to start and grow a business can be
extensive. You may need to commit most of your savings or even go into debt to get
started. If things don’t go well, you may face substantial financial loss. In addition, there’s
no guaranteed income. There might be times, especially in the first few years, when the
business isn’t generating enough cash for you to live on.
Stress: As a business owner, you are the business:There is a bewildering array of things to
worry about competition, employees, bills, equipment breakdowns, customer problems.
As the owner, you’re also responsible for the well-being of your employees.
Time commitment: People often start businesses so that they’ll have more time to spend
with their families. Unfortunately, running a business is extremely time-consuming. In
theory, you have the freedom to take time off, but in reality, you may not be able to get
away. In fact, you’ll probably have less free time than you’d have working for someone
else.
Undesirable duties: When you start up, you all undoubtedly be responsible for either
doing or overseeing just about everything that needs to be done. You can get bogged down
in detail work that you don’t enjoy. As a business owner, you all probably have to perform
some unpleasant tasks, like firing people.
The following are the factors which hinder most Tanzanian to engage in entrepreneurship
ventures due to the following reasons
Financial risk: The financial resources needed to start and grow a business can be
extensive, and if things don’t go well, you may face substantial financial loss. In addition,
you’ll have no guaranteed income.

Stress: You’ll have a bewildering array of things to worry about—
competition, employees, bills, equipment breakdowns, customer problems.
Time commitment: Running a business is extremely time-consuming. In fact,
you’ll probably have less free time than you’d have working for someone
else.
Undesirable duties: You all are responsible for either doing or overseeing
just about everything that needs to be done and you all probably have to
perform some unpleasant tasks like firing people.
In spite of these factors which hinder most Tanzanian to engage in
entrepreneurship ventures where most small business owners are pleased
with their decision to start a business. A survey conducted by the Wall Street
Journal and Cicco and Associates indicates that small business owners and
top-level corporate executives agree overwhelmingly that small business
owners have a more satisfying business experience. Interestingly the
researchers had fully expected to find that small business owners were
happy with their choices.

PREPARED BY TECHNICIAN CLASS 2019/2020.
COMPOSED BY LAMECK LUCAS LAZARO. & EZEKIEL MASSAWE (ABACH)

ENTREPRENEURSHIP.pptx

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Ähnlich wie ENTREPRENEURSHIP.pptx

Ähnlich wie ENTREPRENEURSHIP.pptx (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

ENTREPRENEURSHIP.pptx