Entrepreneur – Practice of Entrepreneurship (Summary)

Who is an Entrepreneur?

An entrepreneur is a person who makes money by starting or running a business(es), especially when this involves taking a financial risk(s).

An entrepreneur should have the ability to come up with a creative solution(s) to needs or problems and market them. Entrepreneurship is the response of a person or organization, to identify and solve problems or to meet the perceived need in the environment.

Your business ideas will tell you

  • WHAT product or service your business will sell.
  • WHO your business is going to sell to.
  • HOW your business is going to sell its products or services.
  • WHICH needs your business will fulfill for the customers.

Sources of Business Ideas

  • Mass media.
  • Complaints.
  • Brainstorming.
  • Personal skill.
  • Exercise.
  • Survey.
  • Read more…

Overview of Decision Making and Calculated Risk Taking.

Procedures for decision making.

  • Identify the problem.
  • Determine the major problems.
  • Determine potential solutions.
  • Evaluate the business.
  • Select the best solution.
  • Implement the solution.
  • Verify that the solution is correct.

 Calculated Risk-Taking

  1. Entrepreneurs always avoid low-risk situations because there is a lack of challenge, they also avoid high-risk situations because they want to succeed.
  2. Entrepreneurs do not gamble.
entrepreneur

Click on this image to download PDF

What are Risk Situations?

A risk situation occurs when a choice is required between two or more alternatives whose potential outcome is not known and must be subjectively evaluated.

Questions to be asked before taking a Risk.

  • Is the goal worth the risk involved?
  • How can the risk be minimized?
  • What is the information needed before taking the risk?
  • What fear do I have before taking the risk?
  • What will I achieve before taking the risk?
  • What are the biggest obstacles to achieving my goals?
See Also:  How to Generate Business Ideas

Procedures for Analysing Risk Situations.

  • Access the risk.
  • Determine the goals and objectives.
  • Clarify alternatives.
  • Gather information and weigh the alternatives.
  • Minimize risk.
  • Plan and implement the alternatives.

Methods of Product or Service Selection

What is a Product?

A product can be defined as anything that can be offered to the market that might satisfy a want or need. A product can be tangible or intangible. [Tangible products are products that are seen, while Intangible products are services].

Selection Criteria

An entrepreneur must know what to do in a business, like;

  • What product to sell.
  • What service to render.
  • How do you determine your target customer?
  • How will they buy your product?
  • Price range.
  • How will they find out about your product?
entrepreneur

Click on this image to download PDF

What makes your Product or Service Different?

  • Quality.
  • Price.
  • Convenience (i.e, getting the product at the convenience time.)
  • Ethnic approval.
  • Payment offer.
  • Specialization.

Feasibility Study for Small Scale Business.

  1. Introduction: Importance of the product.
  2. Description of the product: Goals, objectives, and location.
  3. Market description: Wholesalers or retailers.
  4. Description of the product: Explain the types of product you are producing.
  5. Organizational plan: Organizational chart.
  6. Marketing plan: How to conduct your market research.
  7. Financial management: Identify your source of capital.
  8. How the profit will be used to enhance your business.
See Also:  Business Ideas - Sources of Business Ideas

Process and Procedure for Starting an Enterprise

Some people or persons are scared to start up a business because of;

  • Fear of failure.
  • Lack of capital.
  • Limited business idea.

Types of Business.

  • Sole Proprietorship: It is simply a one-man business.
  • Partnership Business: They are owned and managed by 2 and 20 people.
  • Joint Stock Company: They are formed and incorporated as a legal entity by a group of people, either as a LIMITED or UNLIMITED liability company.

LIMITED LIABILITY COMPANY: The liability of the members is limited to the shares owned in the company.

UNLIMITED LIABILITY COMPANY: The liability of the members is extended beyond the number of shares they have in a company.

  • Cooperative Society: They are a group of people who come together with a common interest to enjoy some mutual business benefit. (the members are known as cooperators)
  • Government Enterprise: They are owned and managed by the government at all level. Such enterprise includes; NNPC, NTA, Railway Cooperation, Water Cooperation etc…

Characteristics of a Good Business Name which Every Entrepreneur Must Know.

  • It must be short.
  • It must be descriptive.
  • It must be unique.
  • It must be easy to remember.
  • It must be easy to spell.
  • It must be catchy. (draw attention)

The Role of Commercial and Developed Bank in the Promotion of Small and Medium Scale Enterprise.

BOI (BANK OF INDUSTRY)

  • It is owned and managed by the federal government of Nigeria.
  • They provide a loan to the small-medium enterprise (SMEs) to encourage the consumption of our local products. i.e, they give loans to small-scale businesses to provide locally made goods or products.
  • They prevent dumping and encourages ventures that can bring the least cost of a product.
See Also:  Business Ideas - Sources of Business Ideas

NACRDB (NIGERIA AGRICULTURAL COOPERATIVE AND RURAL DEVELOPMENT BANK)

The bank is owned by the federal government of Nigeria and was in cooperated in the year 2000.

  • They encourage rural saving scheme.
  • They provide loans to the farmers.
  • They assist cooperative societies to improve the life of cooperators.
  • They provide credit facilities to agricultural and agro-allied industries.

Micro-Finance Bank

They are owned by the government and private individuals.

  • They encourage training.
  • They provide loans for small-scale businesses and the artisans.
  • They advise the artisans on how to start their business.

FACTORS CONSIDERED FOR GRANTING LOAN.

  • Type of loan.
  • Purpose of the loan.
  • Applicants Capability.
  • Security.
  • Business plan.
entrepreneur

Click on this image to download PDF

9 replies

Comments are closed.