CED 300 Entrepreneurship Development (New Edition) PDF

# THE PANACEA TO "A" IN CED 300 ENTREPRENEURSHIP DEVELOPMENT (NEW EDITION) ## BY: U.N.A **Summary Available at Shop Four (8) Faculty of Agric Uniben** **Call**: 09080644179, 07017873919 # Chapter One ## Definitions, Role and Values of Entrepreneurship The definition of entrepreneurship depends...

# THE PANACEA TO "A" IN CED 300 ENTREPRENEURSHIP DEVELOPMENT (NEW EDITION) ## BY: U.N.A **Summary Available at Shop Four (8) Faculty of Agric Uniben** **Call**: 09080644179, 07017873919 # Chapter One ## Definitions, Role and Values of Entrepreneurship The definition of entrepreneurship depends largely on the disciplinary approach been adopted. It can best be described as a multi-disciplinary concept. ## Definition of Entrepreneurship by Various Scholars (Economic Approach) - **Schumpeter (1951):** Entrepreneurship is the undertaking of new ideals and new combinations/innovations mechanism for change and economic development. - **Drucker (1985):** Entrepreneurship is the willingness to take risk by an entrepreneur in investing his capital and other resources in new business enterprise from which he expects a considerable reward now and in the near future. - **Kumar (2017):** Entrepreneurship is what the entrepreneur does; the art of innovating, initiating, risk taking and implementation is called entrepreneurship. - **Hamilton and Harper (1994):** Entrepreneurship is the process of profit making. They claim that profit making is the sole motivation for the entrepreneur. The process of unemployment in a society accelerating entrepreneurship activity is called a "Refugee Effect". In clear terms, refugee effect is a situation which persons that are faced with joblessness and low pay employment turning to self-employment as a better substitute. ## Sociological Approach Sociological approach to entrepreneurship is concerned with the interactions between group characteristics and the establishment/nurturing of business activities in a society. Sociological perspective views entrepreneurship as the promotion of the use of skills and knowledge to set up business enterprises that support social purposes in addition to being economically viable. According to Thornton (1999); the supply-side viewpoint advances the idea that persons and constitutions are being affected by their social context. The supply-side according to Thornton lay emphasis on individuals while the demand-side view point promotes the role of culture and environmental clime in entrepreneurial development. The Demand-side perspective looks at what the entrepreneurs actually do vis-à-vis the choice they make within the social situations of the society that are changing over time. Thornton (1999) defines entrepreneurship as the establishment of new firms which are premised on the process of socio-economic context dependent. Gana (2001) posits that entrepreneurship is the readiness of individuals to look out for investment opportunities in an environment and be able to run an enterprise successfully based on the identified opportunities. ## Psychological Approach Psychological approach to entrepreneurship is concerned with the personality traits of the entrepreneur in line with entrepreneurial development in the society. These traits include risk taking ability, personal enthusiasm to succeed, goal achievement etc. Psychological approach to entrepreneurship deals with the behavior of entrepreneur. Oteh (2009) affirms that entrepreneurship is a process by which an individual driven by the desire to achieve a specific goal embarks on the establishment of a firm. ## Management Approach The management approach to entrepreneurship entails the introduction of innovation, a change or a new order in the way things are done by the entrepreneur. Entrepreneurial development in entrepreneurs according to Austin et al (2003) is influenced by "genetic power", family background and economic environment. Under the management approach, Schumpeter (1951) defines entrepreneurship as a process of risk-taking innovation that is required for speedy economic development, through the process of "creative destruction" by which outdated technologies and ideas are substituted with new ones. ## The Roles of Entrepreneurship - Leadership - Identification and exploitation of business opportunities - Strategic decision making - Seeking investment through risk taking - Seeking innovative business ideas - Strategic business planning - Time management - Value creation - Development entrepreneurial qualities - Acquisition of skills etc. ## The Values or Contributions of the Entrepreneur to The Economic Advancement of A Country - Generation of employment opportunities - Wealth creation - Diversification of economic activities - Promotion of export trade and increased foreign exchange - Interdependence among business - Curbing of rural-urban migration - Improved standard of living of the people - Increased gross domestic product of a nation etc. # Chapter Two ## Forms of Business Ownership A business is an organization that uses economic resources or inputs to provide goods or services to customers in exchange for money or other goods and services. In a capitalist economy entrepreneurs are the active players in business. One major decision that confronts an entrepreneur is the form of ownership his/her business venture would take. ## Issues to be considered by an entrepreneur on determining the form of business to adopt: - Tax consideration - Liability exposure - Start-up and future capital requirements - Managerial ability - Business goals - Management succession plan - Cost of formation ## Forms of business ownership - **Sole Proprietorship/One-Man Business:** This is the most popular or most common form of business that is owned and managed by a single individual. However, the sole proprietorship is not a legal entity as the business cannot readily be separated from the individual who operates it. **Features:** - Ownership - Liability - Sources of capital or finance - Legal entity - Procedure to shut down **Advantages:** - Easy to establish - Flexibility - Ownership of profit - Easy decision making - Easy to liquidate - Cordial relationship - Tax saving - Privacy **Disadvantages:** - Solely responsible for risk and liabilities - Limited finance - Problem of continuity - Lack of expertise - Higher income tax etc. - **Partnership:** This is the form of business that is created automatically when two or more persons engage in a business enterprise for profit. **Features:** - Ownership - Liability - Sources of capital or finance - Legal entity - Procedure to shut down **Types:** - **General or ordinary partnership:** Here, the partners are actively part of the business management and they both risk profits and losses etc. - **Limited partnership:** Here, stake in terms or liability, profit or loss is based on the financial contribution of partners in the business. Partners do not take equal part in the management of the business. - **Master Limited Partnership (MLP):** This is a newer form of partnership that looks much like a corporation in that it acts like a corporation and is traded on the stock exchanges like a corporation but is taxed like a partnership and thus avoids the corporate income tax. - **Limited Liability Partnership (LLP):** Here, partners risk losing their personal assets to only their own acts and omissions of people under their supervision, It is also a newer partnership type that was created to limit the disadvantage of limited liability. **Kinds/Categories Partnership** - **General/Active Partner:** They take active part in the formation, financing, and management of the business and are assigned port folios. receive salaries or engage in profit sharing depending on the terms of agreement. - **Dormant/Sleeping Partner:** In this form of partnership, one or more persons may not be actively involved in the present day to day running of the business, however they provide just money (cash or assets) and are only entitled in profit sharing and losses and based on the agreed sharing formular. - **Nominal/Passive Partner:** Here, an individual enters into partnership on the basis of his experience, wealth, pedigree etc, usually contributes nothing to the business in terms of finance, he only allows his name to be used in the partnership etc. He is more like a mentor to the business owner and may not share in the profit of the business. - **Silent partners:** This is an individual who is known to the public as a partner in a business but he does not take active part in the management of the firm. - **Secret partner:** This is one who is active in the affairs of the business but unknown to the public as a partner. **Advantages:** - Easy to establish and operate - Tax advantage - More financial resources - Longer survival - Privacy **Disadvantages:** - Unlimited liability - It is not a legal entity - Business survival - Individual partners bear responsibility for the actions of other partners - Slow decision making - Restriction on sale of ownership - Limited capital - **Cooperative Society:** This is a form of business ownership that entails a collective ownership of production, storage, transportation or marketing organization. Here, people co-operate with one another as an association and share the wealth more evenly. The term cooperative is derived from two Latin words meaning "working together". The ultimate goal of a cooperative is Mutual Benefits. Cooperatives maybe incorporated or unincorporated. **Characteristics:** - Voluntary organization - Open membership - Membership composition - Legal entity - Capital - Democratic set up - Service motive - Return on capital investment - Distribution of surplus **Types:** - Consumer's cooperative societies - Producer's cooperative societies - Housing cooperative societies - Farming cooperative societies - Credit cooperative societies - Marketing cooperative societies **Advantages:** - Easy to establish - Limited liability - Open membership - State/government assistance - Continuity - Democratic management **Disadvantages:** - Limited capital - Lack of managerial expertise - Less motivation - Lack of interest - Dependence on government - Delay in decision making - **Limited Liability Company:** This is a registered legal entity that is established by several individuals. It is a fusion of persons with a common agreement to pool their resources/capital together to own a business venture. It can also be described as an association of investors who buy or own shares in a company for the purpose of carrying on a business. Limited Liability Company is also referred to as a **Joint Stock Company.** **Types:** - **Private Limited Liability Company** - At inception, it comprises of two persons and a maximum of fifty (50), including its employee. It is a company where the liability is limited to the value of the shares issues e.g. family owned business, small engineering and manufacturing firms etc. **Features:** - Membership - Issuance of shares - Transferability of shares - Quotation - Publication of accounts - Limited liability **Advantages:** - Privacy - More capital - Continuity - Legal entity - Limited liability **Disadvantages:** - Taxes - Share - No presence in the money market - **Public Limited Liability Company** – It is formed by a minimum of seven(7) persons without a maximum numbers. **Features:** - Ownership is by shares, people are free to come in and free to sell-off their shares. - They have shares on the stock market that can be bought and sold by any member of the public. E.g. includes multinational companies like telecommunications, oil and gas, supermarket chains, pharmaceutical companies, etc. **Features:** - Membership - Issuance of shares - Transferability of shares - Quotation as public companies - Publication of accounts - Limited liability **Advantages:** - Legal entity - Ease of raising additional capital - Unlimited expansion - Continuity - Adaptability - Capital transfer - Vast expertise - Share holders interest is safeguard - No managerial responsibility - Employees may become co-owners - Democratic management **Disadvantages:** - Double taxation - Complex to establish - No privacy - Non-flexibility - Co-operation is non-existence - Owners are separate firm managers - Delay in policy and decision making - Suppression of individual initiatives # Chapter Three ## Conducting a Feasibility Study and Crafting a Winning Business Plan The process by which entrepreneurs develop new ideas and discover new ways of looking at problems and opportunities is called **Creativity**. Creativity is the art of thinking new things. The application of creative solutions to problems and opportunities to enhance or enrich people's lives is known as **Innovation**. Innovation is the art of doing new things. The psychology of winning as written by Waitley states that every winner know where he/she is going on a day by day basis because winners are goal and role oriented. A business model is a process that helps a company/business to generate sales and profit. ## Components of Business Model - A definition of your target customers and how your company will reach them - Then customer value proposition your company offers - Point of differentiation - Pricing - Selling process - Distribution system - Customer support ## Feasibility Study It is a process of determining if a business idea is viable. Barringer (2009). It is the process by which an entrepreneur investigates the potential outcome of a project. Inegbenebor (2006). Barringer and Ireland (2002) opined that the most effective business emerge from four steps: - Recognizing a business idea - Testing the feasibility of the idea - Writing a business plan - Launching the business A feasibility report is a document that outlines the various aspect of the study and the conclusions arrived at. ## Problems of Writing a Feasibility Report - Pressure from clients - Unethical behavior of consultants - A paucity of statistical data - The unwillingness of the sponsor to be guided by the feasibility report A feasibility consist of careful investigation of five primary areas: - The overall business idea - The product/service - The industry and market - Financial projections (profitability) - Plan for future action ## Business Plan It is a written narrative, typically 25 to 35 pages long, that describes what a new business intends to accomplish and how it intends to accomplish it. Barringer and Ireland (2012). It is a game plan, a road map that describes the path that the business will follow in moving from its present position to where it wants to be. Inegbenebor (2006). It is a written document that guide the creation of a new venture or the transformation of an existing one from present state to the desired state. ## Criteria for the Evaluation of Project Feasibility - Economic feasibility - Technical feasibility - Financial feasibility - Social feasibility - Legal feasibility ## Contents of a Typical Business Plan - Title page and table of content - Executive summary - Vision and mission statement - Company history (for existing business only) - Business and industrial profile - Goals and objectives - Business strategy - Description of the company's product or service - Marketing strategy - Competitor analysis - Location and layout - Description of management team - Operations plan - Financial forecasts (suitable for an appendix) - Loan or investment proposal - Appendices # Chapter 4 ## Branding, Packaging and Networking in Business Branding is defined as a way or process by which different companies or firms differentiate their product offerings from that of the competitors. Brand, according to Kotler and Armstrong (2008) is a name, term, sign, symbol or design or a combination of all these intended to identify the goods or services of one seller or group of sellers to differentiate them from those of the competitors. **Brand name** is that aspect of a brand that can be mentioned or voiced. **Brand mark** represents the part of a brand that gives recognition to the brand but cannot be uttered or voice as a word. **Brand equity** is the value of a brand based on the extent to which it has high brand loyalty, name awareness, perceived quality, etc. **Brand extension** is the act of using a successful brand name to launch a new or modified product in a new category **Brand image** is the set of beliefs that consumers hold about a particular brand. **Brand inflation** refers to a situation where there are many brands, and instead of leading to transparency, it leads to confusion in market. **Trademark** is that part of a brand that gives legal recognition to a product. **Patent** is a protective right given to an investor to exclude others from making, selling or using the invention for a period of time. **Brand name** can be protected through registered trademark, **manufacturing process** can be protected through patents while **packaging** can be protected through copyrights and design. ## Types of Brand - Manufacturer brand - Own label brand - Generic brand ## Factors to deploy in building a successful brand: - Quality - Positioning - Repositioning - Long-term perspective - Internal marketing - Credibility/being first - Well-blended communication **Brand equity** refers to the added value given to products and services. **Brand equity models** offers different perspective on how brands are built. ## Perspective of Brand Equity Model - **Brand Asset Valuator:** This model gives a comparative measure of the brand equity of thousands of brands across hundreds of diverse classes. - **Aaker Model:** This model explains that there are five categories of brand assets and liabilities associated to a brand that either add or subtract from the value provided by a product or service to a firm or its customers. - **Brand resonance:** This model, like the brandz model explains that branding involves a number of chronological steps also in an ascending order.. Brand equity can be measured with two basic approaches; **direct and indirect approaches.** **Direct approach (brand audits):** It is a consumer focused exercise that involves a series of procedures to assess the health of the brand, uncover its sources of equity and suggest ways to improve and leverage its equity. - The direct approach helps marketers to better understand their brands and it can be used to set strategic direction for the brand. **Brand inventory** helps to provide current, comprehensive profile of how the products and services sold by a company are marketed and branded. It helps to proffer what consumer perception are based on. **Brand exploratory** is conducted to help understand what consumers think and feel about the brand and its corresponding product category to identify sources of brand equity. **Direct approach (brand tracking):** It is used to collect information from consumers on a regular basis over time. **Brand valuation** has to do with estimating the total financial value of the brand. It is different from brand equity. ## Ways to manage a brand - Brand reinforcement - Brand revitalization - Brand crisis **Branding strategy** is a long term plan for the development of a successful brand in order to achieve specific goals. It reflects the number and nature of common and distinctive brand elements applied to different product sold by a firm. Individual brand name is used when each product is branded separately. ## Factors promoting the use of packaging as marketing tool - Self service - Consumer affluence - Company & brand image - Innovation opportunity **Packaging** is the activities involved in the planning, making and producing of a container or wrapper for a product, normally a physical product. **Blanket family names** is adopted by a company wherein it uses it's existing brand name to brand new products. **Brand extensions/sub brand** is a branding strategy that can be used when a firm uses its established brand to introduce a new product. It is normally done by leveraging a new product under a strong brand name. **Networking** as defined by Wolff and Moser (2009) is the behaviors that are aimed at building, maintaining and using informal relationships that posses the potential of facilitating work related activities of individual by voluntarily granting access to resources and maximizing common advantage. **Value networks** refer to a system of partnerships and alliance that a firm create to source, augment and deliver its offering (Kottler and Keller 2006). **Entrepreneurial networks** are structured systems of connections with relatives, suppliers, customers, other agents, etc. # Chapter Five ## Financial Accounting and Record Keeping for Entrepreneurs The following are the benefits of keeping of financial records: - Produce financial information - Stewardship decision - Attention-directory decision - Planning - Control - Problem solving decision - Performance evaluation **Book keeping** involves keeping track of a business' financial transections and making entries in specific accounts using debit and credit systems. **Book keeping** in summary is the aspect of recording and summarizinpr financial transactions. **Accounting** is the process of abstracting or preparing financial repofts from the books of accounts. When the financial reports are prepared for the use of persons outside the enterprise such as investors, creditors etc, the accounting is called **Financial Accounting**. When the financial reports are prepared for the use of person inside the enterprise it is called **Cost or Management Accounting**. The objective of **book keeping** is to keep the records of all financial transactions proper and systemic. On the other hand, the objective of **accounting** is to gauge the financial situation and further communicate the information to the relevant authorities. **Accountability** is the process of being responsible or answerable for whatever one does. **Corporate accountability** is the process of making the people in charge of the management of an enterprise being responsible for all of their actions to the various stakeholders of the enterprise. ## Some Basic Assumptions Made in Accounting - Separate entity - Going concern - Stable money measurement - Periodicity or fixed time period ## Accounting Principles - Historical cost - Realization or recognition - Matching - Consistency - Full disclosure - Substance over form - Objectivity - Fairness - Materiality - Prudence **Accounting bases** is the totality of all the methods of accounting adopted by a business in preparing its financial reports or statements. **Types of accounting bases include:** - **Accrual basis:** This is a method whereby the financial statements are prepared and treated in the accounts for the accounting period in which they are earned and incurred and not necessarily when the cash is received or paid, provided it is consistent with the concept of prudence in accounting. - **Cash basis:** This is the method where financial statements are prepared based only on the revenues and expenses actually received and incurred respectively during an accounting period. **An accounting system** is a financial information system that produces financial information needed to manage a business on a day to day basis. It consist of book keeping and accounting processes. **Accounting cycle** consist of the inputs and outputs processes. ## Principles of Book Keeping - Every financial transaction has two sides called debit and credit, and every debit (Dr) must be equal to credit (Cr). - All accounts must be balanced - Identification of financial transaction to be evidenced by source documents such as tellers, receipts, cheques, etc. **Impersonal accounts** are accounts used to record financial transactions that have nothing to do with persons either as individuals or institutions. They consist of real and nominal accounts. **Liability accounts** represent all that the business owes the third parties. **A ledger** is a collection of related account. **Income statement** is a summary of all the financial transactions showing the various sources of income accruing to the business during a financial period. ## Limitations of Book Keeping and Accounting - Over reliance on historical costs - Measurability problem - Static problem - Verifiability problem - Errors and frauds - Problem of accounting standard - Problem of estimates # Chapter Six ## Institutions Financing Entrepreneurship Development **Financing** is the process of making funds available for business activities which is essential for the procurements of resources needed for business investments. **Entrepreneurship development** refers to programmes of activities which enhance or build entrepreneurial knowledge, skills and attitude of a person to assume the position of an entrepreneur. Business enterprises finance their investments by means of internal and external finance. **Internal finance** (traditional sources) normally remains the major source of starting a business enterprise. ## Sources of financing a business enterprise: - Trade credit - Customer/clients advance payment - Banker's acceptance - Bank loans - Hire purchase - Factoring of debtors - Debentures - Initial Public Offering (IPO) - Retained earnings - Venture capital - Crowd funding - Credits and thrift cooperative society - Angel investors or business angels ## Types of Institutions for Financing Entrepreneurship Developments in Nigeria - Microfinance banks - Deposit money banks - The Nigerian Industrial Development Bank - The Nigerian Bank for Commerce and Industry - National Economic Reconstruction Fund - Bank of Industry Limited - Small Scale Industries Credit Scheme - Refinancing and Rediscounting Facility - Small and Medium Enterprises Equity Investment Scheme - 200 Billion Small and Medium Scale Enterprises Credit Guarantee Scheme - 200 Billion Manufacturing Reconstructuring/Refinancing Facility - 200 Billion Commercial Agricultural Credit Scheme - National Directorate of Employment - National Poverty Eradication Program - Nigerian Export-Import Bank - Nigerian Agricultural Cooperative and Rural Development Bank - World Bank SME I and SME II Loan Schemes - Youth Enterprise with Innovation in Nigeria. **Institutions** refers to organizations created by entities, whose mandates are to regulate and finance entrepreneurship activities in order to reduce unemployment and poverty. ## Reasons for the Failure of Financial Institutions Financing Entrepreneurship Development in Nigeria - Financial reasons - Management - Corruption - Inconsistencies in government programmes - Security challenges - Legal formalities - Obsolete technology - Lack of infrastructure ## Solutions - Infrastructural development - Improved monitoring by the government - Strengthening the credit bureau - Reforming the legal system - Stable macro-economic environment - Anti-corruption crusade - Continuity culture approval - Security # Chapter Seven ## Taxation Policies in Nigeria The main reason for taxation is to finance government expenditure and to redistribute wealth which translates to financing development of the country. A tax is a compulsory payment of money to the government by individuals or organizations as the government covers its expenses on various public functions and its interference in political, economic and social life without direct return of benefits to be derived by the taxpayer. Taxation is a system by which government levies or imposes charges. on citizens and corporate entities to finance its expenses such as defense, welfare like health, education, infrastructure, etc. The National Tax Policy (2012) noted that taxation is basically the process of collecting taxes within a particular location. **Tax base** is the amount to which a tax rate is applied. It is the total of taxable income, taxable assets and the assessed value of property within the government tax jurisdiction. **Tax rate** is the percentage at which an individual or corporation is taxed. It is the percentage of the tax base that must be paid in taxes. **Marginal tax rate** is defined as the tax rate that applies to the last (or next) unit of the tax base; it is the tax percentage on the highest naira earned. The **effective tax rate** is the average tax rate paid by an individual or a corporation. It is the average rate at which individual's earned income such as salaries, and unearned income such as stock dividends are taxed. **A tax holiday** is a government incentive program that offers a tax reduction or elimination to business. It is a temporary period during which the government removes certain taxes, usually sales tax on certain items in order to encourage the consumption or purchase of these items. ## Types of Tax - **Personal Income Tax:** It is a tax on a person's income such as wages, salaries and other earnings from one's job. - **Corporate Income Tax:** It is a direct tax imposed by a jurisdiction on the income of incorporations or analogous legal entities. - **Payroll Tax:** It is a tax that applies only to wages and salaries. It is imposed on employers or employees and are usually calculated as a percentage of the salaries that employers pay their staff. - **Consumption Tax:** It is a tax levied on individuals' wealth etc. ## Classification of Taxes - Proportional tax - Progressive tax - Regressive tax - Depressive tax China has one of the oldest histories of taxation. The income tax was first introduced in Great Britain in 1799. The purchase tax was introduced in Germany in 1918 and Great Britain in 1940. In Africa, tax collection started in Egypt during the era of Pharoah. In most African countries including Nigeria, the colonial masters levied **Poll Tax** on their colonies. The system of taxation in Nigeria dates back to 1904 in northern Nigeria. The implementation of the **Stamp Duties** was done by Lord Luggard in 1913 to help harmonize and centralize the tax system in Nigeria. The **Companies Income Tax ordinance** was created in 1939 and THIS IS WHERE MODERN TAXING SYSTEM IN NIGERIA COULD BE TRACED. It is the first taxation created in Nigeria. The **Federal Inland Revenue Service (FIRS)** was formed in 1978. ## Legal Bodies incharge of Taxation in Nigeria 1. **Federal Inland Revenue Service (FIRS):** The federal government collects taxes through this body. The board administers laws that deals with taxes paid by residents of the federal capital territory and taxes that are paid by corporate bodies, limited liability companies etc. They are responsible for accounting to the federal government all taxes collected. 2. **State Boards of Internal Revenue:** It is the legal body at the state level responsible for road taxes, individual capital gains etc. They are responsible/answerable to the state government on all coflected taxes within the state. 3. **Local Government Revenue Authorities:** They are responsible for collecting taxes of the local government levels. # Chapter 8 ## Agencies for Entrepreneurship Development in Nigeria Statutory agencies responsible for entrepreneurship development include: 1. **Small and Medium Scale Enterprises Agencies of Nigeria (SMEDAN):** It was established in 2003 to promote the development of the Micro, Small and Medium Enterprises Development Sector of the Nigerian Economy. 2. **National Directorate of Employment (NDE):** It was established in November 1986 and fully began operations in January 1987. Its aim is to give training opportunities to the unemployed especially the youth, by providing guidance, finance etc to help them create jobs for themselves and others. 3. **Industrial Development Centres (IDC):** It was first establish in Owerri in 1965 by former Eastern Nigeria government and was later taken over by the federal government in 1970. Its mission is to provide extension service to SMEs in such areas as project appraisal for loan application, training of entrepreneurs, managerial assistance etc. 4. **Industrial Training Fund (ITF):** It was established in 1971 with the objective of raising training consciousness in the economy. 5. **Bank of Industry (BOI):** This is the Oldest, Largest And Most Successful development financing institution in Nigeria. 6. **Corporate Affairs Commission (CAC):** It was established under the Companies and Allied Matters Decree No. 1 of 1990. It has the statutory responsibility for registration of companies, business names and in corporate trustees, undergo name searches and company incorporation. 7. **National Agency for Food and Drug Administration and Control (NADFAC):** It was established by Decree No. 15 of 1993 as amended by Decree No. 19 of 1999. It's mandate is to regulate and control the manufacturing, importation, distribution etc of goods in Nigeria. The agency was officially established in October 1992. 8. **Standards Organization of Nigeria (SON):** It is the sole statutory body that is vested with the responsibility of standardizing and regulating the quality of all products in Nigeria. It was established by Act No. 56 of 1971. ## Non-Statutory Agencies Responsible for Entrepreneurship Development in Nigeria: 1. **National Association of Small Scale Industrialists (NASSI):** It was established in 1978 to cater for the needs of the small scale business industrialists through the provision of socio-political and economic support for members. 2. **National Association of Small and Medium Enterprises (NASME):** It was registered in 1996 as a business membership organization to coordinate and foster the promotion of Micro, Small and Medium Enterprise in Nigeria. 3. **Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA):** It was founded in 1960 as voluntary organization of manufacturers, merchants, financers, trade group who work together for the principal objectives of promoting, protecting and improving business environment for micro and macro benefits. 4. **Manufacturers Association of Nigeria (MAN):** It was established in May 1971 as a company limited by guarantee to perform important roles on behalf of its members as well as the development of the country. - **World Bank,** formerly known as the **International Bank for Reconstruction and Development** was established in 1944. - **United Nations Industrial Development Organization (UNIDO)** was founded in 1966 to promote industrial development for poverty reduction, inclusive globalization and environmental sustainability. - **African Development Bank** began effective operations on July 1, 1966. # Chapter Nine ## Corporate Social Responsibility (CSR) in Business Corporate social responsibility can best be defined as the charitable and stewardship responsibility of organizations to their host communities (Oseyemon 2018). ## Theories of Social Corporate Responsibility 1. **The Stakeholders Theory:** This theory holds that firms or business organization should as a responsibility create for all stakeholders not just shareholders. - This theory asserts that those whose lives are touched by a corporation or a business organization hold a right or obligation to participate in directing it. - Edward Freeman (1984) describes CSR as a business ethics that addresses moral and values in managing an organization. 2. **Corporate Social Performance Theory:** The origin of this theory can be traced to Howard R. Bowen (1953) who posits that social responsibility of business refers to their obligation to pursue policies, make decisions or to follow those lines of actions which are desirable in terms of objective and value to the society. - This theory harps on corporate responsiveness and charges entrepreneurs to adhere to business principles, standard of performance in law according to the existing public policy process. In order to achieve corporate responsibility and responsiveness to the community, business organization must perform the following obligation: - Economic responsibility - Legal responsibility - Ethical responsibility - Philanthropic responsibility 3. **Triple Bottom Line Theory:** This theory expects companies, business owners and managers to focus on social and environmental matters just as they do on profit. The triple bottom lines means that the cardinal role of a business is profit making, people's welfare and meeting of environmental needs. 4. **Corporate Citizenship Theory:** This theory states that a business organization or firm is not socially responsible, if it merely complies with minimum requirement of the law but it's commitment to good neighborliness meaning being a good citizen. This theory emphasized that business are part of the society and should participate in social life, respecting universal human rights and contributing in different ways to the social wellbeing in local and global area. The term corporate citizenship was introduced into the business and society relationship in the 1980s. This theory was actually canvassed by 34 CEOs at the World Economic Forum in New York in 2002. Corporate social responsibility can be categorized by business entities and organization into the following: - Small and Medium Scale Enterprises (SMEs) - National and Multinational Companies - Education and Government Institutions etc. # Chapter 10 ## The Use of Social Media in Business The internet is an open and global collection of interconnected network of computers. The website is defined as a set of interlinked web pages kept together in the same directory in a server. **Email marketing** allow discrete and personified interaction with prospects, converts and customers. **Constituents of email marketing:** - Indoctrination - Engagement - Ascension - Segmentation - Re-engagement **Search marketing** help boost traffic, other facets of digital marketing and prospect’s confidence. **Stages of search marketing include:** - Intent and content - Asset and channel - Optimization and Ascension A computer is said to be internet enabled if it has a network interface card and its associated software installed in it. A server is a computer or network of computers capable of performing task or supplying information as requested by the client. It is not possible for two or more clients to directly communicate on the internet – a server must be involved except via other network capabilities. It is possible however, for two server to communicate on the internet directly. The protocol on the web is the **Hyper-Text Transfer Protocol (HTTP).** A service is a value co-creation mechanism that adds value to man or other services or request. # Chapter Eleven ## Ethical Issues in Business **Morals** can best be referred to as human behavior. **Normative ethics** is concerned with the essence and importance of morally right actions. **Ethical standards and values** stem from the business organizations and the society in which these business firms operate. **Ethical standards** are not static, rather, they are dynamic patterns of human conduct which varies from one society to the other. **Unethical Business Practices Prevalent in Africa include:** - Corruption and bribery - Piracy and counterfeiting - Economic espionage - Immorality, force labour, discrimination in employment. Price fixing or cartels **Ways to resolve unethical issues in business include:** - Human resource management - Rights and duties - Adequate and appropriate use of business resources etc.