Untitled Quiz

Entrepreneurship

• Entrepreneurship is defined as the art of creating or developing a business through innovation, creativity, progressive imagination and risk-taking initiative.
• Key terms in this definition are:
  • Art - a subject of study not scientific, two people may achieve the same result using different methods. Entrepreneurial mindset is required.
  • Creating - involves coming up with a new or original business that did not exist before.
  • Developing - involves making an existing business bigger and more successful.
  • Business - a legal activity created for profit.
  • Innovation - the application of better solutions to meet new requirements or needs/wants. It involves coming up with something original, new, and significant.
  • Creativity – the ability to generate original ideas or combine existing ones usefully.
  • Progressive imagination - the ability to think of innovative ideas that will eventually develop a business.
  • Risk taking - the tendency to engage in behaviors that have the potential for loss but also the opportunity for gain.

Types of Entrepreneurs

• Pulled entrepreneurs - motivated by successful entrepreneurs or role models, adequately prepare and have a higher rate of success.
• Pushed entrepreneurs - driven by circumstances such as retirement or redundancy. Their response to these circumstances is to initiate their own business, often through trial and error, and therefore have a lower rate of success.

Ways Entrepreneurs Operate

• Soloist - works alone
• Acquirer - buys an existing business or inherits it and improves it
• Grouper - combines different talents to form a business team

Types of Entrepreneurs (Continued)

• Professional - uses professional competencies to establish a business
• Inventor - discovers a need and creates a business based on the discovery
• High-tech - uses modern technology to improve business appeal.
• Speculator - entrepreneur who engages in speculative ventures.
• Manipulator (manipulates stakeholders)
• Workforce builder – mobilises a workforce for business success.
• Committed manager - uses managerial skills and experience to develop a committed management approach to business.
• Conglomerator - builds diverse business conglomerates.
• Capital aggregator - seeks to mobilise capital for enterprise development.
• Lifestyle entrepreneur - whose work is part of their daily lifestyle.

Forms of Business (Continued)

• Sole proprietorship - business owned and operated by one person with complete control.
• Partnership – business formed by two or more people, with personal liability.
• Limited company - separate legal entity from its owners, limited liability
• Cooperative - a voluntary association working towards a common goal

Economic Trends in Zambia

• Pre-independence (1924-1964): Colonial rule, Indigenous Africans primarily used for cheap labor, no attempt to promote entrepreneurship.
• Post-independence stage I (1964-1980): Inherited rich treasury, rich copper reserves, low oil prices, led to massive infrastructural development & provision of free education, medical services, water and sanitation. Zambianisation policy led to state-controlled industries & few Indigenous Zambian entrepreneurs. No promotion of culture of entrepreneurship.
• Post-independence stage II (1980-1991): Zambian economy declined, increased unemployment led to government emphasis on promoting entrepreneurship and self-employment. Organizations to encourage small enterprises were started.
• Post-independence stage III (1991 to date): Zambia pursued a liberalised free market economic policy, change in economic policy, transfer of economic control from the state to private through privatization. Closure of organizations, retrenchments, and redundancies, the need for entrepreneurship.

Natural Resources

• Land Resources: Farming, clay for pottery, stone for masonry
• Water Resources: Fishing, reeds for mats, baskets, water for domestic use.
• Forest resources: Saw milling, wood, furniture manufacturing, etc.
• Wildlife - tourism, conservation, food (meat)

Role of Enterprises in Economic Development and Growth

• Creation of employment
• Contribution to the national treasury
• Earning foreign exchange
• Provision of goods and services
• Technology transfer
• Supplementing government effort
• Inculcating a culture of entrepreneurship
• Utilization of local raw materials

Government Policy on Micro and Small Enterprise Development

• Manufacturing policy - efficient and sustainable growth, value added, local raw materials, and competitive industries
• Commerce and trade policy - liberalized sector, competition commission, issues and/or pricing, and export/import procedures
• Agricultural policy - encouragement and empowerment of farmers; initiatives that improve productivity
• Investment policy – dynamic competitive environment, foreign investment attraction to the industrial sector.
• Small enterprises/rural/informal industries policy – improving infrastructure, promoting entrepreneur skills, and accommodating them into the industrial estates.

Business Ethics and Values in Managing an Enterprise

• Cultural values
• Influence of culture and ethics on an enterprise
• Family influence
• No free products or services from business
• Importance of business records

Developing Business Ideas and Opportunities

• Self-employment
• Shortages
• Shortcomings in existing products or services
• Man's basic needs

Environmental Scanning

• The importance of conducting environmental scanning
• Techniques of environmental scanning
• PEST analysis
• Porter's model of Five Competitive Forces
• SWOT analysis
• Value Chain analysis

Defining and Evaluating Business Ideas

• Criteria for business idea evaluation
• Simple scoring method for business ideas

Feasibility Study

• What is feasibility
• Investment assessment techniques (payback period, net present value, internal rate of return)
• Assessing business opportunities (is it possible and worthwhile)

Projecting Profit and Loss, Financial Plan, and Cash Flow

• Projected profit and loss statement
• Financial Plan
• Cash flow statement
• Cost analysis
• Pricing

Managing Human Resource

• Human resource management
• Human resource planning
• Industrial Relations Act

Additional topics

• Stock Control
• Budgeting
• Networking for Enterprise Development
• Communication