ENTREPRENEURSHIP SUMMARISED

For an entrepreneur to succeed, he needs to do a number of activities which include:

Creative thinking, making decision, bearing risks, creation of employment opportunities, marketing and innovation, management, planning and control etc.

PERSONAL CHARACTERISTIC: -

Education, age, work history/experience

LIFE-PATH CIRCUMSTANCE:

-              Unsatisfactory work environment

-              Negative displacement

-              Career transition Point

-              Presence of Positive-Pull Influences

PERSONAL QUALITIES OF AN ENTREPRENEUR:

-              Self Confidence,

-              Originality,

-              Task Oriented,

-              Leadership,

-              Risk Taking,

-              Creativity etc.

FAVOURABLE ENVIRONMENTAL CONDITIONS:

-              Adequate financing

-              Technically Skilled Labour Force

-              Accessibility of Suppliers

-              Accessibility of Customers or new markets

-              Accessibility of Land

-              Social Infrastructure

-              Transport

-              Road

-              Electricity

-              Water

-              Security etc.

PERCEPTION OF DESIRABILITY AND FEASIBILITY:

Factors affecting desirability have to do with characteristics such as family members who owned a business and are ready to encourage their children to be on their own.

 

RELEVANCE OF ENTREPRENEURSHIP:

-              Agent of Production of goods and Service

-              Agent of job creation

-              Supply of raw materials

-              Producer of social amenities

-              Agent on investment

PROBLEM FACING NIGERIAN ENTREPRENEUR

-              Capital/Finance

-              Poor Infrastructure

-              Limited mind set

-              Socio-cultural environment

-              Political

-              Technology

-              Legal System

SMALL SCALE BUSINESS – This is a business of small nature. 

Features:

-              Small in size

-              Staff is few in number

-              Risk is also low

-              Turnover is low

-              Low technological base

-              Over centrialisation of duty

Example of small scale businesses are:

-              One man business

-              Local mechanic

-              Painter

-              Carpenter

FACTORS TO CONSIDER WHEN SELECTING A BUSINESS VENTURE:

-              Viability of such business

-              Location of such business

-              Availability of capital/finance

-              Economic/Political factors

-              Legal implications of such business

-              Demand of such service/product of such business

PLANNING TO START A BUSINESS:

The following tips at initial planning are helpful:

-              Can you really start up a business (Personal ability)

-              Are you a self starter

-              How do you feel about other people

-              Do you need a licence

-              How do you get your business registered

-              Can you lead others

-              Can you take responsibility

-              Can you make decision

-              Can people trust what you say

-              How good is your health

-              What sort of booking system to adopt (record)

FEASIBILITY STUDY/SURVEY

This simply means business plan and such plan consider are:

-              Relevance of such business

-              Location

-              Why people succeed

-              Capital out lay

-              Likely problem

-              Pay back period

Set Goal: - set your goal that is, what do you want to achieve, with what and at what length of time.

Be committed: - Marry yourself to the business, nurse it to maturity.

Assess your Character: - Take a personal assessment of yourself. Are your characters those that can boost or impede the business?  

Be Unique:- Do not be a copy-cay. Be yourself.

Pay the Price: - Every success has a price tag. No pain no gain.

SYMPTOMS OF A BUSINESS FAILURE:

-              Unfavourable working capital position (illiquid cash position)

-              Declining turnover

-              Declining profit or increasing loses

-              Progressively higher debt ration

CAUSES OF BUSINESS FAILURE

-              Poor Feasibility Report

-              Lack of adequate planning

-              Incompetent management

-              Under-capitalization

-              Poor market analysis

-              Filing behind the crowd

-              Neglecting business ethics

-              Neglecting its social responsibility

-              Poor communication

-              Wrong location

-              I have arrived syndrome

-              Bad spending habit