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NATURE OF ENTREPRENEURSHIP

INTRODUCTION
The word entrepreneur and concepts derived from it such as entrepreneurial, entrepreneurship
and entrepreneurial process are frequently encountered in discussions of the management of new,
old, fast growing and innovative business ventures. Entrepreneurship is what an entrepreneur
actually does. Entrepreneurial refers to the approach they take (process) or engages in.
ENTREPRENEURSHIP MODEL

Entrepreneur/Person

Organisation
Enterprise

Entrepreneurship/
process
Other

Entrepreneur tasks
performed

Environment

Entrepreneurship is a process of using private initiative to transform a business concept into a


venture or grow and diversity an existing venture or enterprise with a high growth potential.
Entrepreneurship is the attempt to create value through recognition of business opportunities to
the opportunity through communicative and management solutions skills and capital
mobilisation.
Entrepreneurs are characterised not by every action they take but by a particular set of actions
aimed at the creation of new wealth. Entrepreneurship is a particular approach to wealth

generating activities. The recognition of this fact gives us three angles of the approach to the
Entrepreneur namely:(i)
(ii)

A manager undertaking an activity by an individual.


An agent of economic change i.e by the effects they have and the type(s) of changes they

(iii)

create.
An individual i.e by means of their psychology, personality and personal characteristics.

ENTREPRENEURSHIP MODEL
Entrepreneurial
Personality

Entrepreneurial
Organisation

Entrepreneurship

Entrepreneur
tasks

Entrepreneurial
Environment

ENTREPRENEURIAL PERSONALITY
We are all different not only in the way we look but also in the way we act and the way we react
to different situations. Personality is defined as the consistent and persistent profile of beliefs,
feelings and actions which make one person/individual different from another. Entrepreneurial
personality is a combination of the person, his skills, styles, motive etc. The Entrepreneur is
centred to Entrepreneurship because without the key individual, there cannot be creative results.
Personality determines the kind of environment the would be Entrepreneur is likely to feel
comfortable in and hence what type of company the Entrepreneur feels comfortable working in.
ENTREPRENEURIAL TASKS

This is a continuous process focused on identifying, creating, winning over and satisfying each
client. The central task of the Entrepreneur is to recognise and exploit opportunities.
Opportunities may come from many sources. However, the Entrepreneur must have the ability
to perceive opportunities where others do not. In conclusion therefore, Entrepreneurial tasks
depend upon the personality of the Entrepreneur, organisational strategies and environment. For
example provision of employment, provision of products, identify innovations, identifying
opportunities, imitation and creativity.

ENTREPRENEURIAL ENVIRONMENT
Entrepreneurship is to a great extent controlled by the environment. The world surrounding
organisations influences or hinders growth of Entrepreneurship and the viability of the enterprise.
The e Entrepreneurial environment is made up of several element or factors such as politicallegal factors, economic factors, social- cultural factors, technological factors, intermediaries,
competitors, customers, etc.
ENTREPRENEURIAL ORGANISATION
The organisational context is the immediate setting in which creating an entrepreneurial work
takes place. It includes the organisation, its structures, systems, work roles e.t.c. These factors
may facilitate or hider creativity and Entrepreneurship. To some extent, its the Entrepreneur
himself who creates an Entrepreneurial organisation. An appropriate organisational context is
one which fits best with a personal vision with a key task to be performed.
ENTREPRENEUR
This refers to a person who identifies an opportunity and exploits it to the benefit of all other
stakeholders.
He is someone who undertakes a business venture, someone responsible for bringing together
F.O.P, someone who is innovative and takes decisions.
ROLE OF ENTREPRENEURS IN THE SOCIETY

Entrepreneurs are very significant because they have an important effect on the world activities
today. They play a critical role in maintaining and developing the global economic order where
we live. Some of the roles they play include:1.
2.
3.
4.
5.
6.
7.
8.

Create employment
Identify business ventures plus development.
Capital mobilisation (Resources)
Render services to the society.
Contribute to growth and development of the society government revenue.
Facilitate political stability
They also act as role models to other people.
e Entrepreneurs bring together economic factors such as raw materials, labour, capital, etc

(resource mobilisation).
9. They provide market efficiency. Efficiency means that resources are distributed in an
optimal way i.e to the satisfaction that people can gain from them is maximised.
10. They accept risks (calculated risks).
11. Processing market information e.g about the product, the industry, the business
stakeholders, etc.
12. Maximising investors returns.
13. Quick recognition and exploitation of opportunities.
14. Introduction of innovations in terms of new products, new services, new ideas, new
companies, new sources of raw materials, etc.
BARRIERS OF ENTREPRENEURSHIP IN UGANDA
1. Political instability
2. Lack of resources
3. Unfavourable government policies e.g high taxes, constraining laws, high interest rates,
etc.
4. Poor infrastructural facilities e.g telecommunication, road networks, etc.
5. Culture of individuals e.g beliefs.
6. Lack of entrepreneurial skills
7. Unethical behaviour.
8. Poor technological development.
9. Lack of a noble concept/possible concept.
10. Social stigma.
11. Time pressures and destruction/lack of time management.
SOLUTIONS TO BARRIERS (HOW TO OVERCOME BARRIERS)
ENTREPRENEURIAL VENTURES

An Entrepreneurial venture is an enterprise which focuses on innovation and has high potential
for growth and survival. In addition, its also profit oriented.
Classification of Entrepreneurs Two sides

CAUSES OF EARLY FAILURES OF ENTREPRENEURIAL VENTURES


1. Lack of skills
2. Limited market research and surveys.
3. Poor planning.
4. Limited resources
5. Competition.
6. Unfavourable government policy.
7. Change in technology.
8. Environmental problems
9. Lack of customer information
10. Poor idea conceptualisation
1. Management mistakes i.e going into business for the wrong reason e.g because so and so
2.
3.
4.
5.

is doing it.
Lack of market awareness.
Lack of financial responsibility and awareness.
Lack of clear focus i.e no planning takes place.
Being optimistic or pessimistic. These two extremes may also cause a failure because

you are not sure whether the venture will take either a short or long period of time.
6. Entrepreneurial incompetences no skills, emotimal activities, no knowledge and no
planning.
7. Neglect, fraud/corruption.
8. Lack of information about your customers, competitors and generally the environment,
government policies, etc.
9. Uncontrollable environmental factors for example climatic factors e.g long droughts,
heavy rains.
10. Cultural attitudes and beliefs, values, norms of the entrepreneur.
11. Changing technology
EMERGENCE OF ENTREPRENEURS

There are several factors that determine emergence entrepreneurs in the global environment
today. There is need to clarify how entrepreneurs emerge. Fro published studies, and expreicnes
re-encountered by entrepreneurs themselves. The formation of the image of an entrepreneur
incorporates factors related to the individual person. These include the following:
1. Personality factors
- Motivation/emotions, behaviour characteristics.
Personality factors may include;
a) Born/made ratio of 50:50
A combination of genetic and environmental influence such as birth order,
experiencing family life (born to be great).
b) Motivation and emotions i.e independence, competitive spirit, challenge et.
c) Behavioural characteristics i.e persistence, determination, risk taking, opportunity
oriented, need to achieve etc.
d) Personality attribute: This is an individuals preferred style e.g interacts and extracts,
receiver or observer, judge/perceiver.
2. Upbringing factors: These may include personal characteristics such as;
a) Age, educational level, place of residence, income, etc.
b) Psychological characteristic i.e. creativity, need for achievement.
c) Women entrepreneurs and the minority. Like man, womens dissatisfaction in their
current jobs and desire for success are major factors promoting them to become
entrepreneurs.
d) Childhood experiences i.e family role models personal extra ordinary experiences i.e
family tragedies such as parents death, serious injury or illness, experience for being
awarded a price, etc.
Pseudo entrepreneurial experiences e.g at an early age, children/kinds making
various products or services, they may print their own money, selling home made
products, baby sitting etc. Childhood experiences are the first steps in becoming a
successful entrepreneur.
3. Migration factors:
People who migrate to foreign lands are more inclined to become self employed. Some of
these may include;
a) Market accessibility e.g textile industry shifting to climax because of the market.
b) Capital accessibility can be a push or pull factor
c) Economic conditions.
d) Business focus e.g change of frame to fit the environment.
e) Support networks.

f) Business experience etc.


g) Employment history factors e.g industrial expertise.
It is dangerous to start up a business without specialized knowledge of the industry.
Sales growth is strongly related to the entrepreneurs technical expertise over the first
four years of business and to ones marketing expertise in the first three years of
business. For example 855 of the Japanese hi-tech companies were founded by
Entrepreneurs who had prior experience in the industry.
-

Management skills and competences in communication skills, leadership skills,

financial skills, negotiation skill, delegation skills, etc .


- Entrepreneurial experience i.e founding experience
(h) Unemployment )
(i) Recruitment
(j) (k) Retirement etc.
4. Environmental factors
TYPES OF ENTREPRENEURS/MODES/CLASSIFICATION
The different types of entrepreneurs have been proposed by different scholars and these include
the following:1. Innovative entrepreneurs: These are individuals who come up with new ideas, new products
etc. There are the most ideal entrepreneurs. Sometimes referred to as a true entrepreneur.
He/she brings new products, new processes, identifies new sources of raw materials, new
organisations, operations etc. They are responsible for industrial, economic growth and
development etc. Persons if this kind are generally aggressive in experimentation and clearly
put attractive possibilities into practice e.g Juwa Kali, Katwe Metal Works etc.
2. Imitative/Adoptive entrepreneurs: These initiate what the innovations have done e.g
Chinese and Japanese. These initiate and adopt the technology and techniques innovated by
others. They are particularly important in underdeveloped countries although not highly
regarded in more developed economies. However, initiative entrepreneurs also need to be
creative in order to modify innovations to suit their special conditions. This kind of
entrepreneurs are ready to adopt successful innovation instead of innovating the changes
themselves. They are usually in developing countries where;

a) There is little capital for developing innovations.


b) There is lack of skills, experience and technology for developing innovations.
c) There is limited entrepreneurial activities or where initiatives are less risky etc.
3. Drone entrepreneurs: These are characterised by the refusal to adopt and use opportunities to
make changes in production or operations (very conservative). Such entrepreneurs may
suffer losses due to failure of taking opportunities in their production or business operations.
They are laggards because they continue to operate in their traditional way and resist
changes. When their product/service or business loses market and their operations become
uneconomical, they are pushed out of the market.
4. Fabian entrepreneurs: These are very cautions and sceptical while practicing any change.
They have neither the will to introduce new changes nor the desire to adopt new methods
innovated by the most enterprising entrepreneurs. Such entrepreneurs a low risk takers, shy
and lazy. Their activities or operations are determined by customs, religion, tradition and
part experiences. These entrepreneurs are reluctant to change but are sometimes forced by
circumstances in the environment. They respond very slowly to changes in the market and
this affect their growth and competitiveness. However by trading a proven path, these
entrepreneurs are protected from the uncertainty of new innovations, initiations and are
therefore likely to survive for a long time.
5. Opportunity entrepreneurs: They constantly look for and exploit survival opportunities
because of their wide skills and knowledge accumulated from a wider education
background, experience, exposure or expertise. They start by exploiting small opportunities
often varied as they grow. Their ambitions involved building large rights and are not afraid
of borrowing to achieve this growth; they usually find it easy to delegate and hire competent
employees. These can either be growth oriented or independent oriented entrepreneurs.
(i) Growth oriented entrepreneurs persue opportunistic to maximise potential of their ventures.
(ii) Independent oriented entrepreneurs main ambition is to work for themselves and they prefer
a stable growth.
6. Craftsman entrepreneurs: These entrepreneurs are less interested in profit and are more
concerned with earning a stable life from their specialist skills. They own the business in
which they operate but tend to restrict their business to their individual skills and
experiences usually accumulated from their limited education background and exposure.
They have minimal growth ambitions, keeping their enterprises small as a means of
maintaining control. However nowadays, these may be divided into two groups i.e those
with traditional skills and those with expertise in the high technology.

Others may include;


- Visionary entrepreneurs
- Necessity entrepreneurs
- Administrative entrepreneurs
- Industry maker/ entrepreneurs
- Forced entrepreneurs
- Intra-corporate entrepreneurs
- Individual and institutional entrepreneurs
- Male or female entrepreneurs
- Rural or Urban entrepreneurs
- First, second and third generation entrepreneurs.
ENTREPRENEURIAL CHARACTERISTICS
Entrepreneurial characteristics refers to ones behaviours, personality, within environment.
Everyone has a talent, what is rear is the courage to venture it into/in loneliness and to follow
the talent to the dark places where it leads.
There is no ideal entrepreneurial character or personality. Successful entrepreneurs can be
analytical (objective) or intrusive (subjective feelings), risk avarse or risk taker, introvert or
extrovert, etc. However, research indicates that successful entrepreneurs whether female or male
have some common characteristics i.e:
1.
2.
3.
4.

They are innovative and creative.


Moderate risk takers
Competitive by nature.
Have strong need for achievement/self activitisation.

CONCEPT OF WINDOW OF OPPORTUNITY


The concept of window of opportunity has several stages that entrepreneurs sue to be able to
create and develop their businesses.
1) Identifying and analysing the gap. This involves;
a) Identifying the existing business gap in the market.
b) Identifying the strategy image or symbol.
Business gaps within the market:

An understanding of why on established business environment will always had opportunities for
entrepreneurs established business are in a strong position to survive compared to new entrants
because of the gained experience. Despite all this, entrepreneurs do compete effectively against
the established layouts. They identify and exploit new opportunities in the presence of
experienced competitors by thinking there is always a better way of doing things.
There are a variety of reasons why existing business leave gaps in the market that innovative
entrepreneurs can exploit and these include the following;
1. Established business fail to see new opportunities:
Opportunities do not present themselves. They are to be actively sought out. A business
organisation has not only a way of doing things. He does or scanning the environment,
putting in the place the right systems processes accepting and responding to the changing
circumstances and carrying out a business with you. Failure to do so means seeing the world
in a different way.
2) New opportunities are thought to be small;
The value of a new opportunity must be seen as relative to the size of the business which
might pursue/take it on. The chance to gain an extra shilling of business means an increase
in turnover. Therefore, if small opportunities are ignored or atleast not persued vigorously
by existing players/companies, then a new entrant is likely to take it on.
3) Technology inactivity/ inertia
Opportunities are persued by an innovation and technology is a way to address the need.
Failure for businesses to adopt a new technologies leaves room for new entrants to make the
technological innovation based on customer needs and wants.
4) Cultural influences
Each business has its own way of doing things/carrying out its activities. This is the culture
that influences the way in which it delivers values to its customers. There is need for
organisations/ business to change their organizational culture as the competitive
environment changes so as to meet the new challenges. Failure to do it creates a gap for new
entrants.
5) Government intervention to support new entrants:
Government is responsible for providing economic efficiency and effectiveness. It may
provide support through tax incentives, cheap and accessible loans, technology
development, education, consulting and many others.

2. In appreciation of how the image or symbol of the strategic widow can be used to identify
and exploit opportunities, entrepreneurs carryout the different stages given the nature of
the environment i.e five stages which include;
1. Seeing the window; it scanning for the opportunities/spotting. This involves scanning
the solid wall presented by existing players to find the widows and sport the gaps in
what they offer to the market. This process demands an active approach to
identifying new opportunities to innovating in response to them.
2. Locating the widow; i.e position the venture. This instances developing and
understanding of where the widow is located. This demands an understanding of the
positioning of the new offering in the market place relative of the business can
position itself in the market place to existing players to take advantage of the
opportunity presented.
3. Measuring the widow:
This involves evaluation. The opportunity and recognizing the potential it offers to
create new value. This means findings out how much the opportunity might be
worth. This implies getting facts about the market by measuring its size,
understanding its dynamics and trends, evaluating this impact the innovation might
make in it and ascertaining how much customers might be willing to spend on
measuring the window as also demands that the entrepreneur develops an
understanding of the risks the venture might face.
4. Opening the window: i.e gaining commitment.
Having identified, located and measured the window, the next stage is to open it.
Opening the window means taking the vision into reality i.e actually starting the new
business. Critical to this stage is the need to get stakeholders to make a commitment
to the venture i.e to attract investors and employees develop a new sit of relationships
and establish the venture within the network. Once the window is opened, then the
entrepreneur can more through it by speaking that they are actually started up the
business.
5. Closing the window; i.e sustaining competitiveness
Once the window has been opened and the entrepreneur has passed through, then the
window must be closed again. If it is not, then competitors will follow through and
exploit the opportunity as well. Closing the window to stop competitors following
them means creating long term sustainable competitive advantage for the business

PRODUCT PLANNING AND DEVELOPMENT PROCESS


Stages I
1. Idea generation/creativity
Internal i.e employees
External i.e customering through complaints
- Competitors i.e criticisms/bad things
- Suppliers i.e conditions before supply
- Other intermediaries advise before extending
the loan through ventures
- External factors e.g market conditions, politics, etc.
You may come up with an entirely new product.
You may come up with a modified version
You may come up with extended product to suit the customer needs.
Stage Two
2. Idea Screening
Select the best idea out of the many using a criteria
Evaluation form
Present
A
B
C
D

Use
1-5

Travel mkt
3
4
2
2

Qty
1
1
1
2

Comp.
2
1
4
2

Total
6
6
7
6

Stage Three
3. Concept development i.e concept in paper early morning think for bachelors.
4. Strategic marketing/Market strategy
- Colour
- Size
- Texture
- Price
New product strategy
Extension product strategy
Each strategy has costs and implications e.g pricing strategy
-

Promotion customers are not aware of the product i.e advertising depending on the
target market.

Direct market for sales promotion, internet, radio, television, etc. The message must be clear.
-

Distribution strategy i.e from premises to customer whether to use agent, retailers,
wholesalers, co representatives or **
Will the **tion be intensive etc?
Shall we do it ourselves or we need to employ other people

5. Business analysis
- Feasibility and viability i.e do we have the resources both financially and human
-

resource/competence of people, you should not employ a consultant


Evaluate the entire business in terms of the product you want to develop.
Every function in the company must be c** and aware of the new idea e.g
Company
Human
resource
Finance

When all are in line you develop


Prodn

the product

Marketing
Targeted
mkt

6. Product development
You first come up with a proto type and you give out free samples.
7. Test marketing/ Market testing
- This is done in different markets depending on the objectives of the company e.g one you
testing the quality, size, contents, etc.
- You then come out with the evaluation from the market i.e criticisms.
8. Commercialization/launching of the product
Review the product either on an annual basis depending on the company objective.
Most company products fail because they do not follow their process for example B.B. soda.
Some of the hurdles/problems that entrepreneurs face during product planning and development
process.
1. Limited financial resources.

2. There is hardly any marketing research i.e companies are not willing to listen to customer
grievances and complaints e.g Katwe metal works because there is no immediate contact
with customers.
3. Wrong ideas are taken at sometimes.
4. Lack of skills and competences e.g technical skills, communication skills.
5. Competition with the environment e.g other competitors activities i.e no bench marking
because a competitor may launch the product when you are still on the way e.g monitors
Ngoma was intercepted by New Visions Bukedde on launch by giving free papers.
6. Government policy and company laws and regulations.
Factors that lead to failure of New products
1.
2.
3.
4.
5.

Cultural influences either within the company and outside.


Customers loyality to the competitor companies.
The product may not meet the consumers needs.
Technological advancements and trade i.e in terms of product, skills, distribution, etc.
Failure to identify opportunities in the environment and weaknesses within the company

itself.
6. Poor marketing strategies in terms of pricing, promotion, advertising messages etc.
Qn: Design a service development system
BUSINESS START UP STRATEGIES
For every business venture, the founder believes that they have either recognized an opportunity
unnoticed by others or they can do something better in a more innovative way than the existing
supplier. Entrepreneurs may decide or may be driven by direct personal experiences to start up
the business. They take on the following strategies.
1. Invention: Entrepreneurs start from scratch to formulate a business venture. While its true
that small firms are more effective than large ones at coming up with ideas, its also true that
most brilliant new ideas dont make good business.
2. Spotting a gap in the market: This involves taking a business concept that works well in
other places and finding a new and under supplied or under competed market in which to
start up. In practice, this is probably the most common way into business. The chances of
success when starting up in this way are greatly improved when the founder knows and
understands the markets, products and services involved.

3. New business opportunities: Sometimes, completely new business opportunities are


created. This can be brought about by economic factors, technological development,
changes in the way people work and live or a combination of many factors. The skills for a
small business founder lies in both recognising that the opportunity is about to occur and
when or how i should be exploited.
4. Other peoples failures: Very often, the small business founders imagination will have been
brought about by the frustration of receiving inferior or inadequate satisfaction from an
existing product or service.
5. Buying an existing business: Buying out an existing business has a number of advantages
and disadvantages. The basic business idea needs to be validated by market research.
REASONS WHY AN ENTREPRENEUR MAY WANT TO BUY AN EXISTING
BUSINESS
If entrepreneurs are buying business or a company to expand their operations, they need to
critically analyse their reasons. Big companies end up on the takeover trail because of
management ego or corporate strategies.
1.
2.
3.
4.
5.
6.
7.

To maximise market share e.g Shell buying Agip petrol stations country wide.
To reduce the cost of establishing a new company and therefore buy up an existing company.
To maximise the overall performance of the company e.g shareholders wealth.
,
.
,
.

An entrepreneur should produce a well written statement explaining rational behind the reasons
to buy before he/she starts looking for possible companies.
Entrepreneurs analyse and describe what an ideal purchase is by explaining the following key
issues while determining what they are buying;
1.
2.
3.
4.
5.

Business area i.e the product/service the company is in.


Location of the business i.e being near the markets, near the raw materials, etc.
Price range i.e prices for the services or products you are yet to buy.
The management style and leadership that the entrepreneur is looking for.
The scope for integration i.e in terms of activities and operations in relation to the buy out.

ACQUISITIONS
Acquisitions are alternatives to organic growth available to an entrepreneur. The entrepreneur
decides to add other businesses to his/her venture so as to grow by acquiring them. There are
three methods of acquisition available to an entrepreneur. These differ in the way in which the
integrated venture is in relation to the value chain addition.
1. VERTICAL INTEGRATION
This involves acquiring a business or firm which is either above or below within the firms/
entrepreneurs value addition chain e.g forward integration i.e acquiring your distribution
outlets from customers or backward integration i.e acquiring the suppliers business.
2. LATERAL INTEGRATION
This is where an entrepreneur acquires the business which is at the same level of value
addition within the chain e.g from juice to acquire a car business.
3. UN-RELATED ACQUISITION
This occurs when the integrated business is not a supplier or a distributor or a competitor. E.g
Aga Khan.
ADVANTAGES OF ACQUISITION TO THE FIRM
1. Reduction in costs depending on the nature or type of intergration. E.g operational cost,
2.
3.
4.
5.

current costs, production costs, transport costs etc.


It leads to a firms growth whether background or forward.
It leads to an increase in production hence enjoying the economies of scale.
It leads to diversification e.g in the case of unrelated acquisition/integration.
Leads to a better competitive edge if you buy up the competitors firms. This also

becomes a threat to other near entrants.


6. It leads to the development of an organisation resources especially the human resources
because individuals are got from the newly acquired firms.
7. It leads to knowledge diversity and information for the venture.

DISADVANTAGES
1. Competitors may retaviate e.g Mango plus UTL against MTN.
2. The company may face diseconomies of scale because costs of production may increase as
well as prices and taxes.

3. Human Resource may be a problem because you may require people with experience and yet
the acquired firm has inexperienced people.
4. Unpredictable environmental factors during the acquisition process.
5. The purchase price is the return on the investment may be to low as compared to the
purchase price.
6. Inherited customer base may not be the most desirable and changing the firms image may be
difficult.
7. Building the companys image and layout may not conform to the standards as per the
acquisition.
WAYS HOW TO MANAGE AN ACQUISITION
1. Having a strategic plan: This should be prepared in advance.
2. Howl management and staff meetings on the first day to ensure effective communication.
3. Set limits of authority, reporting relationships and any other networks should be clearly set.
LOCATION OF AN ENTERPRISE/VENTURE
Plant/business/venture location is the decisionmade by an entrepreneur to establish the venture in
a particular area. This decision is affected by many factors.
FACTOR THAT AFFECT THE CHOICE FO LOCATION FOR A VENTURE
1.
2.
3.
4.
5.

Market for finished goods:


Presence of transport and communication facilities.
Raw materials especially for those industries that require bulky raw materials.
Labour supply in relation to costs, skills and attitude of labourers towards work.
Government policy: Government usually encourages industries to be located in backward
areas by giving incentives, subsidies and tax holidays.

CHARACTERISTICS OF A GOOD LOCATION


1.
2.
3.
4.
5.

Enough space for expansion.


Should be accessible in terms of transport and communication
Should be cost effective in terms of layout and design.
Maximum safety and security.
Maximum coordination of the firms operations.

1. Discuss five elements for an ideal site location?

2.
3.
4.

5.

- Define what site location is


- Talk about the elements (consider mark allocated)
- Outline the point, then later discuss them
What factors had to the failure of new products in the market.
A friend has come to you complaining about failure of his products in the market. Advise.
What procedure would you follow to spot a business opportunity.
Do not stick in what you have covered in class, add some stages if you have them
Identify opportunity/scan (identity gaps) the environment from opportunity
Analyse opportunity
Evaluate opportunity
Competitive advantages
Strategies
- Being a low producer
- Being different
- Increasing on a particular product

Cost sources of competitive advantage


-

Being a low cost producer i.e low cost raw materials.


Technological improvements.
Having skilled employees to reduce of damages.

6. In what way is an vision important to an entrepreneur.


A vision is a dream, from the vision, you desire a mission, form a mission you desire
objectives and aims.
- What should we adverse when and how long term, short term, etc.
- Motivates entrepreneur, etc.
7. It is time that entrepreneur are failing. Discuss the rational behind his standard.
Approach
Two sided question, failures and successes.
8.

Discuss five e entrepreneurial characteristics and their relevancy to entrepreneurial

activities.
9. Entrepreneur are born not made. Discuss
Approach
Family background ** side.
Migration
Employment history made order

etc
10. Competitive techniques to adopt.
- There is no wrong answer here;
e.g brading
-

Logo
Price
Quality etc

Disadvantages of competitive advantage


-

It is costly on the competitive side


Companies may go out of business because they are trying to satisfy the market.