Entrepreneurship Development Manual for Trainers or Instructors

7/30/2019 Entrepreneurship Development Manual for Trainers or Instructors

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ENTREPRENUERSHIP DEVELOPMENT

MANUAL FOR TRAINERS/INSTRUCTORS


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MODULE NO. 138-01-A

MODULE TITLE: Introduction to Entrepreneurship

UNIT A1.1 The Concepts of Entrepreneurship, Self-

Employment and Enterprise

UNIT 1.1 .1 Concept of Entrepreneurship

Session Duration : 60 minutes

Session Rationale

For a long time, entrepreneurship has been recognized as an essentialingredient of economic development. The manner in which it has beenexploited in the western societies has varied from time-to-time to suit thechanging ethos of socio-economic reality. From early centuries (16th to 19th)the definition of entrepreneurship has changed from time-to-time. InFrance, the term entrepreneur was used in the early days for army leaders.Later, architects and builders of roads and bridges were calledentrepreneurs. In the 19th it was applied to businessmen/trades who boughtand sold goods at a profit. |It was in the 20th century that an entrepreneurwas identified as the person who identifies and opportunity, takes risk,consolidates resources and sets up an enterprise.

This session will explain the attitudes required and the functions carried outin relation to entrepreneurial activities.


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Session Learning Objectives

At the end of the session, trainees will be able to define the terms,entrepreneurship, intrapreneurship and entrepreneur

Learning Outcomes

On completion of this session, the trainees will be able to:Define the terms entrepreneurship, intrapreneurship andentrepreneurDistinguish between entrepreneurship and entrepreneur

Learners Activities / Environment

Ensure that the learning activities for the trainee include explanations ofentrepreneurship, intrapreneurship and entrepreneur.

Methodology: Lecture and Discussions

Trainers Preparation

1. Go through the Reference Paper (enclosed) and also refer Reading

Paper HO 1.12. Make flipcharts or transparencies as enclosed

Session Delivery

1. Open the session with the following statement:Today we will be learning about the concept of entrepreneurship Ask participants what they understand by entrepreneurship.

Intrapreneurship and entrepreneur Elicit answers and put all the answers on the blackboard or on

flipcharts.


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Trainers Tips

1. Consolidate all answers and take a small Lecture on the definitionof entrepreneurship, entrepreneur and intrapreneurship. Gothrough the process of entrepreneurship, referring referencepaper HO1.1

2. By referring to all the gathered answers, take a Lecture on theprocess of entrepreneurship using flipcharts. (use Transparency-

TR1.1)3. Elicit answers to note the difference between entrepreneurship

and intrapreneurship, from the participants, and put it onflipcharts.

4. Explain to the participants with the help of flipchart/Transparency(TR1.2), that entrepreneurship is a chain of functions and decisionstaken at different stages of enterprise building.

6. Explain the different stages of enterprise building with the helpof transparency TR1.3 or flipcharts.

9. Summarize the learning.

Reading Material

Entrepreneurship can be described as a creative and innovative response tothe environment. Such responses can take place in any field business,industry, agriculture, education, and the like. Doing new things or doingthings that are already being done in new ways is therefore, a simpledefinition of entrepreneurship. Or you may emphasize that for our

understanding, a person involved in a business activity where the person sellsa product/service and makes profit is an entrepreneur. This may includemanufacturing, trading, or service oriented business (i.e. laundry, restaurant,petrol pump, etc.). Whatever may be the activity, entrepreneurship has twodistinct aspects one is the entrepreneur herself and the other is theenterprise.


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Entrepreneur + Enterprise = Entrepreneurship

Entrepreneurs by and large have been found to be people with a high driveand higher activity level, constantly struggling to achieve something which

they could call as their own accomplishment. They like to be different fromothers and strive to accomplish goals which are not otherwise very easy toachieve. At the same time, they do not strive to achieve something which ispractically impossible. Constantly motivated by their goals, they work veryhard. It has been found that some of the highly motivated entrepreneurshave developed awareness of their worn strengths and weaknesses and alsoabout the resources and constraints in the environment while striving toreach their goals. This concept is gender free.

TR1.1Entrepreneurship Concept

What is Entrepreneurship

Entrepreneurship is one of the four mainstream economic factors: land,labor, capital, and entrepreneurship

The word itself, derived from 17th-century French entreprendre - refersto individuals who were undertakers, meaning those who undertook therisk of new enterprise

Entrepreneurship is the dynamic process of creating incremental wealth. This wealth created by individuals who assume the major risks in terms of

equity, time, and/or career commitment of providing value for someproduct or service.

The product / service may or may not be new or unique but value must beinfused by the entrepreneur by securing and allocating the necessaryskills and resources.

Process as involving all the functions, activities, and actions associatedwith the perceiving of opportunities and the creation of organizations topursue them

Who is an Entrepreneur

A business founder Someone who has turned a normal community activity into business Anyone who creates and introduces value to customers through a product

or service and expect to get a financial reward


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The entrepreneur is the individual (or team) that identifies theopportunity, gathers the necessary resources, creates and is ultimatelyresponsible for the performance of the organization.

Entrepreneurial Businesses

The two most important categories of businesses to consider whendiscussing entrepreneurship are small businesses and micro enterprises.Though these two categories do not capture all entrepreneurial enterprises,they comprise the lion's share of businesses that fit within the definitiondiscussed above.

TR

Creating CreatingAn entrepreneurship anEntrepreneur enterprise

TR

Different Stages of Enterprise Building

Realisation of when an entrepreneur scans theOpportunity environment and selects the product

Consolidation of an entrepreneur consolidatesresources,Services (finance, land, buildings etc)

Implementation and resources are put together and

entrepreneurCreation of venture starts an enterprise

Reference materials

1. Women Entrepreneurship Development Manual (ICECD) 19932. Change and Entrepreneurship, Jenks L. H, Harvard Univ. Press 1949


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Unit 1.1.2 Types of Entrepreneurs

Session Duration : 60 minutes

Session Rationale :This session will expose the trainees to the various types and forms ofentrepreneurs with a view to widen up the mind set of the trainees

Entrepreneurship Attributes:The entrepreneurship attributes being addressed include the need to be

open-minded, creative and ability to identify business opportunities, risktaking

Session Learning ObjectivesAt the end of the session, trainees should be able to describe the varioustypes of entrepreneurs

Learners OutcomeAt the end of the session, trainees should be able to identify and describe

various types of entrepreneurs

Trainers Preparationgo through the Reference Paper (enclosed) and preparetransparencies as given

MethodologyLecture and focused group discussions

Session Delivery1. Show TR2.1 and define the term Entrepreneur2. Show TR2.2 and discuss the traits and characterises of entrepreneurs3. Divide the trainees into small groups of five.


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4. Using a flip chart, ask the groups to identify and describe the typesof entrepreneurs within their communities. Explain to them that atthis point they are no wrong or correct answers.

5. After 15 minutes have a plenary session. Capture their contribution on

a flip chart These should be but not restricted to the following:Women entrepreneurs:IndigenousImmigrantsMum & bopSole traderInnovatorinventor

TR 2.1

Who is an Entrepreneur

A business founder Someone who has turned a normal community activity into business Anyone who creates and introduces value to customers through a

product or service and expect to get a financial reward The entrepreneur is the individual (or team) that identifies the

opportunity, gathers the necessary resources, creates and isultimately responsible for the performance of the organization.

TR 2.2

Types of entrepreneurs

o Sole traders

o Inventors

o Innovators

o Agents of change

o Curious


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HO 2.0

Entrepreneurial Traits Assessed in a Behaviour Test

1. The need to achieve: This is evident in an individuals desire toachieve some standard to excellence and success inperformance

2. Risk taking: They have an inclination to take calculated,moderate and, intelligent risks. They tend to avoid bothexcessive high as well as low risks

3. Positive self-control: This includes self confidence as well asself-efficacy and, a positive image of ones abilities and

achievements4. Initiative and independence: Such people not only showinitiative but also exhibit a great deal of independence in theirday to day behaviour

5. Problem solving: They have the tendency to approach problemswith a view to solve them

6. Hopeful about the future: Even in a situation where there area lot` lot of disappointment and frustration, they dont losshope

7. In constant search: Always scanning the environment foropportunities

8. Time conscious: They set goals for themselves and try toaccomplish them within the set time framework

Reference materials

1. Women Entrepreneurship Development Manual (ICECD) 19932. Change and Entrepreneurship, Jenks L. H, Harvard Univ. Press 1949


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Unit 1.1.3 Forms of Business

Session Duration :

Session RationaleA business organisation in contrast to a public service organisation or acharity, exist to provide goods and services at a profit. Making a profit maynot necessary be the sole aim of the business, but it is certainly whatdistinguishes it from a non-business organisation. The business organisation

we are concerned with here range from one-man business to a large publiccompany thousands of staff in a variety of locations.

The session will therefore, identify and explain the various forms ofbusiness and relate the legal requirement to their formation

Entrepreneur Attributes for the Session

Learning Objectives

At the end of the session, trainees will be able to:identify and understand the various form of businessdescribe the form of business and,relate the regal requirement to each form of business

Learning OutcomesVarious forms of business identified and describedLegal requirement relating to each form of business identified anddiscussed

Instructional Methodology : Lecture and discussions

Trainers PreparationGo through the handout HO 3.1 and reference materialMake flipchart or transparencies as enclosed


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Training Delivery1. Start the session by stating the rationale of the session as

outline above2. Show TR 3.1 and discuss the four main forms of business3. Show TR 3.2 on Legal requirements and discuss how this relates

o businesses4. Administer Exercise HO 3.2 after the exercise distribute

handout H.O 3.1TR 3.1

Forms of Business

1. Sole Trader

One man business. Owner takes all risks and profits2. PartnershipConsist of at least two to 20 persons who have agreed toform businessTake all the risks and profits

3. Limited companyFormed by two or more people (shareholders)The business is a separate entity from owners

o liability falls on the business

Fall into categories Public limited companieso (plc) and Private limited companies


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TR 3.2

Legal Requirements

Sole Trader

The legal requirements for setting up such business areminimum.All profits made by sole trade are subjected to income

PartnershipFew formalities required for starting upNo obligation to publish accountsSharing of profits or losses

Limited companyIn registering a limited company, the following are the legal

requirements:The companys nameThe location of the registered officeThe objectives/purposes of the companyA statement that the liability of members is limitedThe amount of share capital

HO 3.0

Forms of Business

There are basically four form of businessThe sole traderThe partnershipLimited companyCooperatives

The sole trader

This is the simplest form of business. This means going it alone with one-person business. The owner of the business takes all the profits but suffersall its losses and has all the problems and worries to himself


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The legal requirements for setting up such business are minimum. All profitsmade by sole trade are subjected to income tax rather than corporate taxlevied on company profits

The main advantages of operating as a sole trader areThe formalities for starting up are minimumComplete autonomy to run the business as the individual wishesThe profits of the business belong to the traderNo public disclosure of accounts

Disadvantages

The sole trade is entirely responsible for the debts of the businessThe individual as a manager has to be responsible for all aspects ofthe business (marketing, sales, product development finance etc)

Partnership

A partner exists when at least two, and usually not more than twenty,persons agree to carry out a business together. Such an agreement canspecify the right and obligation of each partner. As with sole trader, themembers of the partner are owners of the property and liable for itscontracts. Therefore, they are responsible for meeting their debts to thirdparties

Advantages of Partnership

Few formalities required for starting upSharing of partners knowledge and skillsSharing of management of business\No obligation to publish accounts

Sharing of profits or losses

Disadvantages

Each partner is liable for the debts of the partnership


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Risks that the partners may not be able to work together at apersonal levelThe death or bankruptcy of one of the partner will automaticallydissolve the partnership, unless otherwise provided for in the

partnership agreement

Limited companies

A limited company can be formed by two or more people who become itsshareholder. When a limited company is formed it is said to be incorporatedi.e. endowed with separated body, or persons. The corporation so formed istreated, according to law, as a separate entity, independent of its members.

Limited companies fall into categories Public limited companies (plc) andPrivate limited companies. A public limited company must make its sharesavailable to the public for purchase and the company name must end withwords, Public limited company. A private limited company on the hand is notcompelled to of float is share to the public

In registering a limited company, the following are the legal

requirements:

1. The companys name2. The location of the registered office3. The objectives/purposes of the company4. A statement that the liability of members is limited5. The amount of share capital

Advantages of a limited company

In the event of failure of business, shareholders are protectedagainst the loss of more than the nominal value of their shares

The separate legal person of the company exist independently ofthe members

Shares (in plc) are readily transferable


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Disadvantages

Precisely because liabilities are limited, it may be difficulty for asmall company to borrow as extensively as desired since banks may beunable to recover their funds if business fails

There are considerable legal procedures to be followed when settingup a company

Cooperatives

Small groups of people who wish to set up a business along explicitly

democratic lines and with the benefits of a limited liability can chose toestablish a cooperative. Usually promotion of cooperative has beenencouraged by the government. Some of the rules governing cooperativesare

Each member must have equal control on the one person one voteprinciple

Members must benefit primarily fro their participation in the business Interest on the loan or share capital has to the limited

Advantages

Provide an opportunity for pooling of capitalEncourages active collaboration between all section of the workforceProvide limited liability (if registered)Provides rewards on an equitable basis

Disadvantages

There is less likelihood of a level of profitability and growth that

could be achieved by a limited companyRelationships can deteriorateDecision making process can be lengthy


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HO 3.2

Questions for Discussion

1. What is the significance of limited liability to2. a. shareholder? b. creditors? c. banker?3. for what overall purpose are companies obliged to make public

their constitution and activities?4. What is the principle distinction between a private limited

company and public limited company?5. Why do some people prefer to establish a registered

cooperative rather say a private limited company?

Reference Materials1. Management Theory and Practice by G. A Cole (2. Business Law - Sixth Edition by Keenan and Riches (2002)3. Women Entrepreneurship Development Manual (ICECD) 19934. Barnet H G. Innovation, the Strategy for Economic Development. New

Haven. Yale Unv. Press

Unit 1.1.4 DIFFERENCE BETWEEN AN EMPLOYEE ANDENTREPRENEUR

Session Duration 60 minutes

Session rationale

Being an entrepreneur does not only mean having a business. Entrepreneurialattributes could still be found even in an employee.

Entrepreneurial Attributes:

Learning ObjectivesAt the end of the session, trainees will be able to explain the differencesbetween an employee and an entrepreneur


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Session Delivery

1. Divide the trainees into two groups to read, discuss questions on TR

4.1 on Group 1 to discuss Advantages and disadvantages of being anentrepreneur or Group 2 to discuss Advantages and disadvantages ofbeing an employee.Group 3 to discuss the difference between an employee and anentrepreneur

3. Distribute HO4.1 as a supplement to your the answers given from thegroup discussion

TR 4.1

Questions for Discussion

1. Group 1: Identify and discuss the difference between anemployee and an entrepreneur

2. Group 2: Identify and discuss Advantages and disadvantages ofbeing an entrepreneur

3. Group 3: Identify and discuss Advantages and disadvantages ofbeing an employee.

HO4.1

Difference between an Employee and Self-employment

A woman running a small business establishment by working on one or twomachines and looking after her business all alone is said to be self-employed.When a woman starts a small business venture and employs a few people tokeep it running, but manages the show herself, she is an entrepreneur.

Thus, we can say that all entrepreneurs are self-employed but all self-employed are not entrepreneurs. The entrepreneur is one who initiates and

established an economic activity or enterprise. (This could be a self-employment unit or an enterprise with other)


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Different Kinds of Employment HO 4.2

There are several ways in which people can be employed

Wage employment: This means working for weekly or monthly payment calledwage or salary. The work is done in a shot, factory, office or other places ofbusiness. An important thing to remember about wage employment is that itis usually obtained in competition with other people who want the some job

Sheltered employment: Though not that common in Zambia, in this kind ofemployment people also get a wage or salary, but their work is done in a

special condition where they do not have to compete with others who want ajob. An example of sheltered employment is the special workshop which aresometimes established for persons with disabilities

Cooperatives: Sometimes workers join together to share the running of abusiness. Instead of paying a wage, each worker gets a share of the profits.These are common in agriculture industry

Self-employment: This is a situation where an individual establishes theirown business and pay themselves out of the profits

Reference Materials1. Small Business Management II, Unit 8, Open Learning Programme for

Entrepreneurs, EDI, FNST

2. Handbook of New Entrepreneurs. P. C Jain, Oxford Unv. Press, 1998


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Unit 1.1.5 Self-employment

Duration 45 Minutes

RationaleMost countries in Africa, Zambia included face a serious shortage ofemployment. There are not nearly enough jobs for everyone. Most of the

young people with good qualifications have great difficulties to findemployment. The difficulties are usually greater in rural areas where thereis far much less development

What can be done to improve the situation? Certainly, the answer does notlie in the government or indeed anybody else creating jobs for the manyunemployed. The answer is in individuals creating business for themselvesand earning a leaving out of it

Entrepreneurship Attributes: The attributes being addressed in this sessioninclude the need to be creative, innovative, independent, and a risk taker

Learning Objectives

At the end of the session, trainees should be able toIdentify self-employment as a viable optionExplain the benefits of being self-employedExplain the challenges of being self-employed

Learning OutcomesSelf-employment definedBenefits of self-employment as an alternative appreciatedChallenges of self-employed explained and appreciated

Session Delivery1. Using a flip chart discuss the generic explanation of self-employment.

This should be followed by a discussion on self-employment as viableoption for trainees as shown in HO 5.1

2. Show TR 5.1 and discuss the pros and corns of being self-employed3. Have the trainees tackle an individual exercise on HO 5.2


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4. Distribute HO 5.1 onSelf-employment as a supplement material

Instructional Methodology: Lecture

HandoutHO 5.1

Self-employed

Self-employed are those workers who earn a living by running their ownbusiness. Examples include plumbers, gardeners and freelance photographeretc. Many people start their business adventure dreaming of riches andfreedom. And while both are certainly possible, the first thing to understandis that there are trade offs in being self employed. Difficulty bosses,

annoying co-workers, peculiar policies, demand upon your time and limits onhow much money you can make are traded for independence, creativity,opportunities, and power. But by the same token, you also swap a regular pay-cheque and benefits for no paycheque and no benefits. A life of security,comfort, and regularity is traded for one of uncertainty

There are definitely pros and cons to be self-employed. These include:1. Control- Even if you like your boss and your job, possibilities remain

that you can be laid off any time; the company can go bankrupt. But if

you are self-employed, you are in control of you work and career2. Money- Many people chose to be self-employed because they think

they are worth more money than they are making on a job or theywant to provide a better life for their families. There is a limit towhat amount of money one can make when employed. There are farfewer limits when you are an entrepreneur

3. Creativity and independence- Self employment provides for gratecreativity and independence. Running your own business may require

you to be marketing wizard, salesman, bookkeeper, secretary and

manager all rolled into one4. Freedom- Working at your own business gives you the flexibility todecide when and where you will work. You decide your hours and placeof business


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But there are downsides to being self-employed1. Uncertainty- The life of an entrepreneur is not necessary an easy

one. It is fun. It is challenging, exciting, spontaneous. The hardestpart of being in business for your self is that there is no steadysource of income; paycheque does not come every 30 days

2. Risk- Not all entrepreneur ventures are successful. The willingness totake a smart, calculated risk is the hallmark of smart entrepreneurs

3. Lack of structure-Many people like the structure for working forsomeones. They know what is expected of them and what they need toaccomplish each day. This is not true when you work for yourself. Thework is very unpredictable

There is need to consider both risks and rewards of entrepreneurshipbefore deciding to jump in. It is easy to become infatuated with the idea ofowning a business. But if one was to do it right, and be successful, thenthere is need to take emotions out of the equation. One has to begin thinkinglike a businessman, consider risks, and make informed, intelligent, calculateddecisions

TR 5.1

Pro and Cons of Self Employment

Pros

Full control of oneself No limit to the amount of money to make Creativity and independence More flexibility

Cons

Uncertainty Risks of not being successful Lack of structure


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HO 5.2

Self-assessment Instrument

Assessing Yourself1. Are you a self-starter?a) Yes, I like to do things on my own

b) If someone helps me get started, I will definitelyfollow through.

c) Most of the time, I would rather follow than lead.2. How do you fee about taking risks?

a) I really like the feeling of being a bit on the edge.b) Calculated risks are acceptable at times.

c) I like the tried and true.3. Are you a leader?a) I usually get people to go along when I initiate something.b) I can give the orders if I have to.c) I let someone else get tings moving, then I take part if Ifeel like it.

4. Do you like to assume responsibility?a) Yes, I enjoy taking charge of things and seeing them

through.b) I will take over if I have to, but would rather let someone

else be responsible.c) Theres always some eager beaver around wanting to show

how smart he is. I say let him.5. How organized are you?

a) I like to have a plan before I start.b) Being well organize isnt my strongest suit, but I can do it

when necessary.c) I just like to take things as they come.

6. How hard are you willing to work?

a) I can stay motivated as long as necessary.b) I will work hard for a while, but when Ive had enough,thats it.c) I think many other things are more important than work.


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7. Are you decisive?a) I can make up my mind in a hurry if I have to.

b) If I have to make up my mind quickly, I do, but I dontlike it.c) I dont like to be the one to decide things.

8. Can you live with uncertainty?a) Yes.b) I can if I have to, but I dont like it.c) No. I like knowing what to expect.

9. Can you stick with it?a) If I make up my mind to do something, I dont let

anything get in the way.b) Usually.c) If things dont go right, I may just quit.

10. How good is your health?a) I never run down!b) I have enough energy for most of the things I want todo.c) I run out of energy sooner than most of my friends.

11. Are you competitive?a) You bet.b) When I need to be, I can bec) Not really, my nature is more laid-back.

12. Do you have a lot of willpower and self-discipline?a) Yes.b) I am disciplined when I need to bec) Not really.

13. Do you plan ahead?a) In my book, failure to plan is planning to fail.

b) Planning is important, but so is spontaneity.c) I take one day at a time and let life take me where it will.

14. Are you creative?a) Yes I am. I am always thinking up new ideas.b) I have an occasional brainstorm.c) No, not really.


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15. Can you live without structure?a) Yes

b) Actually, the idea of living without a regular job or paycheck makes me nervous.c) No, I like routine and structure in my life.

If you answered a on more than half of the questions, you have thepersonality needed to run your own business. If most of your answerswere b youre likely to encounter more trouble than you may want.

If you have several c answers, then you are not quite ready to start

your own business. But that does not mean that you cant get ready.While certain aspects of entrepreneurship are innate (the willingnessto take a risk, for example), many are learned (such as knowing how toconduct market research). If the results of this quiz tell you to slowdown, that is good. You can always take business classes, read morebooks, or listen to business tapes in order to learn more. Anotheroption would be to get a partner who has the skills you lack. Thereare many ways to start your own business, and if you are not readynow, it does not mean you will never be ready.

Reference Material

1. Small Business Management II, (EDI- India) 19992. Fredrick Harbison, Education, Manpower & Economics (New York,

MacGrow-Hill)


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UNIT A1.2: ECONOMIC TRENDS IN ZAMBIA

Unit 1.2.1 Historical Background to the Zambian Economy

Session Duration : 60 Minutes

Session Rationale

To establish the various economic and social factors that have been at playin the shaping of entrepreneurship in Zambia since independence

Session Objective

At the end of the session, trainees will be able to:Appreciate the historical background to the Zambianeconomy and its impact on the entrepreneurship growthWill be able to explain the various social-political trends inZambia and how these relate to entrepreneurship growth inthe country

Session Outcome

Instructional Methodology: Lecture and focused discussions

Session delivery1. Distribute HO 6.1 and discuss the Historical background to the

Zambia Economy2. Distribute HO 6.2 and discuss the Social Political Trend inZambia

3. Give a summary of the session


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TipsPlease acquaint yourself with the five year national development plans

HO 6.1

Historical background to the Zambia Economy

Zambianisation: A strategy adopted by the government soon afterindependence in 1964

Objective of this strategy was to empower Zambian by offering them

senior poison that were held by the European colonial masters

Nationalisation: This was a state programme that sow the take overof key companies by the government Substitution IndustrialisationStrategy: A deliberate policy to start manufacturing locally good thatwere being imported into the country. Examples; Livingstone MotorAssembly, Rover Zambia in Ndola

Mono-culture Economy: Zambia is highly dependant on only one

economic resource, copper. This is at the expense of other sectorslike agriculture, manufacturing, tourism. This state of affairs did notpromote the growth of other sectors later on encourageentrepreneurial activities

Urbanisation: Zambia is one of the most urbanised countries in Sub-Sahara Africa. About 60% of the Zambian population leaves in urbanareas particular along the line of rail.

One Party State: A political situation in which there is only onepolitical party in the country. This was a situation in Zambia from1973 to 1991, United National Independency Part was the only party inthe country


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Multi- Partism: A political situation where there are more than oneparty in the country. This was the case from 1964 to 1973 and 1991 todate

Population growth rate: The average population growth rate forZambia has been 3.6%. This is considered to be too high for a countrylike Zambia


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HO6.2

Social-political Trends

1960s The first ten years of independence was marked by an

outpouring optimismThere were huge investments in infrastructure and human resourceHuge sums of money were put into ministries, schools, hospitals,factories and roads. At this time, most of the economic activitieswere still concentrated in a few white settlers

New measures were put in place to create jobs and self employmentparticularly for the indigenous Zambians. For example, thecooperative movement, establishment of at least a factory in major

districts (Kapiri Grass, Kawambwa Tea, Kafue Nitrogen Chemicals etc)

1970s The country started experiencing economic slowdown, global marketprice for copper started becoming weaker. Prices of imports weregetting higher and higher thus making operation of most of theenterprises in the country difficulty as these are highly dependant onforeign inputs

Financial support from overseas was nowhere near enough to resolvethe rapidly growing balance of payment position

1980s The country adopted the IMF supported economic reformsprogramme. However, these reforms put the country into even morestress. The strength of the local currency weakened significantly,inflation sky-rocketed, generally making the development ofenterprise in the country unattainableDue to the lopsided development between the rural and urban areas,the county started experiencing huge drift of rural dweller into townsparticularly along the line of rail. This trend has social consequences

like high crime rates in urban areas. Not everyone was able to beabsorbed in formal employment. Social amenities were not enough togo round

1990 The era saw the end of the one-party-system and the reintroductionof the multipartism. This was followed by almost full liberalisation of


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the economy. These changes were accompanied by the change ofgovernment as well.

2000 The country started experiencing positive growth. The mining sector

which was at the verge of collapse has picked up with the introductionof new ones. The era was also market with election and the newgovernment that was formed pledged to stump out corruption.

The country is still certainly facing a number of challenges likeHIV/AIDS which has to take a toll on the productive sector of thesociety. Employment levels are still low and poverty levels are high

Reference Materials

1.

Zambia National Development Plans I, II, III, IV2. Informal Sector Business Activities in Lusaka Urban Districts,

Tolosi S & Nawiko M 1997

3. Emergence, Growth and Characteristics of the Informal Sector inZambia, 1991


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Unit 1.2.2 Natural Resources as They Relate to Entrepreneurship

Session Duration 60 Minutes

Session RationaleEvery location in this country is endowed with national resources. However,only a few are able to harness these resources for their livelihood. Thissession aims at exciting the trainees to be critical to the resources aroundthem.

Entrepreneurial Attributes: Resourcefulness, creativity, innovativeness,

Learning ObjectivesAt the end of the session, trainees will be able to List the various resources found in Zambia Identify the potential usage of these resources for entrepreneurial

growth


Activities

1. Divide the trainees into small groups and let them read, discuss,and answer questions on TRI 7.1 Identification of Resourcesand their usefulness to entrepreneurial activities

2. Guide the discussion by pointing out the importance of eachresource identified

Tip: In the discussion emphasise on the importance of human resources andfinance as some of the critical resources for any enterprise


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TR7.1

Individual Exercise: Resource Identification

1. Identify a business that you would like to venture into2. What are the resources required for the business you haveidentified?

3. What is the importance of each resources identified?


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8.0 Informal Sector Growth

Session Duration

Session Rationale:The session gives an appreciation of the informal sector in Zambia

Learning ObjectivesAt the end of the session, trainees will be able to: Explain the term, informal sector Identify factors encouraging the development of informal sector Understand the role the informal sector plays in Zambia


Activities

1. Show TR and define the term informal sector2. Divide the trainees into small groups and let them read an exercise on

HO and identify and discuss factors encouraging informal sectorgrowth

3. Supplement the trainees discussion with a discussion of HO

Reading Material

The Informal Sector

These are very small units producing and distributing goods and services and,largely of independent and self employed. They operate on very little capital,or non at all and utilise very low technology and skills. They operate on very

low levels of productivity, and which generally provide very low and irregularincome and, highly unstable employment for those employed by suchenterprises.

They are formal because for most part they are not registered with thegovernment. They mostly not recognised and supported by government. Theyare, most of the time compelled by circumstance to operate outside the


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framework of the laws. They tend to have very little or no access toorganised markets and to credit systems

The importance of the informal sector in Zambia can not be over

emphasised. The sector employees between 40% to 60 percent of the urbanlabour force

In Zambia, the informal sector can be traced from colonial days of mining. InLusaka for instance, the urban district informal sector business activitiesstarted in 1930. During this time, informal sector developed because of theneed to provide certain goods and services to European settlers and Africansettlers. Products such as firewood, charcoal, reed-baskets could not beprovided in modern markets

Factors encouraging the Informal Sector

Mostly it is due to the inability by other sectors of the economy agriculture or other rural activities on the other hand, and modern industryand services on the other to provide adequate incomes or employmentopportunities to a rapidly growing labour force. The steady stream ofmigration from the rural areas urban areas coupled with increasingpopulation growth meant that urban modern activities have been au able toabsorb more of the burgeoning urban labour force.

Those excluded from the employment in the modern sector constitute alarge labour surplus. Since the people concern can not afford to be employedfor any length period of time, they have to creative for themselvesactivities which can provide them with income

Other recent developments like the 1980s recession, the IMF/ World Bankadjustment programmes have further resulted in the growth of the informalsector. The restructuring of the civil service and the closing of mostparastatal organisations saw a huge number of people without employment.

These ended up in forms of all sorts of business activities which themajority fall in the informal sector


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The following are the examples of the informal sector in ZambiaBrick makingDoor, window frame and burglar bar manufacturingSoap manufacturing

TailoringFood processingConstruction of private homesStone crushing and sellingStreet vendingShoe repairsMotor vehicle repairsWeldingHair dressing

Reference:1. How to Motivate Entrepreneurship in Zambia, Nanjappa K. L Min. of

Commerce

2. Small Enterprise Development Programme, Lusaka 19933. The Dilemma of the Informal Sector (ILO) 19914. Informal Sector Business Activities in Lusaka Urban Districts,

Tolosi S & Nawiko M 1997

5. Emergence, Growth and Characteristics of the Informal Sector inZambia, 1991


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Reference:

6. How to Motivate Entrepreneurship in Zambia, Nanjappa K. L Min. ofCommerce7. Small Enterprise Development Programme, Lusaka 19938. The Dilemma of the Informal Sector (ILO) 1991

In Zambia, there is a challenge before the class of entrepreneurs to accelerate the

tempo of industrial activities in such centre in which the traditional capital hasremained shy to enter, and where without foreign collaboration and technical know-

how imported from foreign lands. The Zambian industry has no venture to progress.

This is a highly unsatisfactory state of affairs and it calls for Zambian entrepreneurs

accepting the challenge to take calculated risks and adventures in moving bravely intosuch sophisticated centres without in any way relying on foreign collaborations.

Imbalances

The second vital challenge for the entrepreneurs is the dangerous imbalances in the

regional economy. By and large, Zambian Industries are concentrated only at Kabwe,urban district, Kafue Township, Livingstone district, Lusaka urban district, and

Copperbelt province of Ndola Rural district, exception of Ndola Rural District.

Nearly 60% of total population of the country are living in rural areas, and yet thereare fewer industries to support them. People on the Copperbelt and Lusaka areas for

instance, are earning five times more than their relatives. Thus it may be seen thatvast areas of the country are starving of industries and the benefits of industrial

economy. Thus entrepreneurship Zambia shall be identified with the inclination ofnew entrepreneurs to penetrate all the rural parts of Zambia, so that within a very

short time the regional imbalances are corrected all over the country through the

efforts of entrepreneurs.

As already pointed out entrepreneurship involves risk and adventure through

calculated and the resurgent youth of the country are most suitable. In fact thecreation of Small Industry Development Organisation (SIDO) then was done with a

view to take the responsibility of ways and means to create such an atmosphere where

the entrepreneurs would find the appropriate assistance for the fulfilment of theirimage. In the context of the traditionally shy investment capital in Zambia, not only apositive entrepreneurship has to be developed but also the capital to sustain the

adventure of entrepreneurship. The time has come to identify entrepreneurship as

separate from industrial opportunism, and the measures mentioned above are directedtowards such identification.


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10 Policy Instruments Supporting Enterprise Development

Session Duration: 60 Minutes

Session Rationale

Session ObjectivesAt the end of the session, trainees will be able to:

Outline policy instruments supporting enterprise development Relate policy instruments to enterprise development

Learning activities

Ensure that the learning activities include the following An outline of the policy instruments supporting the development of

enterprise in Zambia Relation of policy instruments to enterprise development


Session Delivery

1. Using material provided in HO 10.1, prepare transparencies orflipchart and discuss the Government of Zambia policy on enterprisedevelopment

2. In small groups, as the trainees to discuss how these policies couldlead to the promotion of enterprise development in the country.Suggestion on additional policy guidelines should be encouraged

Reading Materials

Small Enterprise Development Act 1996

As the means towards the Government of Zambias support of small scaleenterprise, the Small Enterprise Development Act was enacted in 1996This act led to the creation of the Small Enterprise Development BoardThe function of this Board included:


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To promote and facilitate the development of micro and smallenterprise

To create a conducive environment for attaining of the purpose

Specifically that Board was to: Formulate, coordinate and implement policies and programmes to

promote the development of micro and small enterprises Monitor the efficiency and performance of micro and small

enterprises having regard for the purpose for which they areestablished

Establish a data base for facilities and sources of finance, technology,raw materials, machinery, equipment and supplies

Provide marketing support services to the micro and small enterprises

Register, collect, research and disseminate information relating tomicro and small enterprises Monitor and coordinate activities and programmes of promotional

agencies engaged in micro and small scale enterprise development Assist in the development and upgrading of appropriate technologies

for micro and small enterprises Initiate and develop industrial estates and common facilities for use

by micro and small enterprises Establish training and processing centres to provide machinery and

equipment Develop the Zambian entrepreneurship Arrange for independent training, management and consultancy

services for macro and small enterprises Provide financial services Make recommendations to the Ministry on any legislative reforms

which may be required for the development of the micro and smallenterprises

Reference Material1. Small Enterprise Development Act No. 26 of 19962. Technical Education, Vocational and Entrepreneurship Training Policy

(GRZ) 1996


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Statutory Obligation Relating to Enterprise Development

Session Duration 60 Minutes

Session Objective

At the end of the session, trainees will be able to: Apply statutory obligations to enterprise development

Leaning Activities

Ensure that the learning activities include the following

Application of statutory obligation to enterprise development. This shouldinclude PAYEo NAPSAo Labour lawso Licensing and permits

Instructional Methodology: Focused discussions and Field visits

Session Delivery1. Divide the trainees into three small groups. Let each group identify anenterprise of their choice with the locality which they will visit andcome and report on the following:a) Group one: What are the enterprises obligation as regards Pay-

as you earn (PAYE) and National Pensions and Savings Authority(NAPSA)

b) Group Two: What are the labour laws related to an enterpriseand, how are these being applied in an enterprise?

c) Group Three: What are the licenses and permit requirements inoperating a particular enterprise? Give each group approximately two hours in which to collect this

information2. Assemble all members for presentation

In case some trainees have not acquired the exact information,trainer may guide them through a short lecture


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Activity

1. What are the enterprises obligations as regards Pay-as youearn (PAYE) and National Pensions and Savings Authority

(NAPSA)2. What are the labour laws related to an enterprise and, how arethese being applied in an enterprise?

3. What are the licenses and permit requirements in operating aparticular enterprise?


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12 Support Systems

Session Duration 60 minutes

Session Objectives

At the end of the session, trainees will be able to Identify support services to enterprise development Discuss the role of support systems to enterprise development in

Zambia

Learning ActivitiesEnsure that the learning activities include the followingA generic discussion of the support systems to enterprise developmentA generic discussion on the roles of support systems to enterprisedevelopment


Session Delivery

1. Show TR12.1 and discuss the financial and other incentives forenterprise development

2. Show TR12.2 and discuss exemption enterprises registered underSmall Enterprise Development Act enjoy as a means toward theirdevelopment


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TR12.1

Financial Services and Incentives

The government of Zambia through the Small Enterprise DevelopmentBoard, does, in order to facilitate the development of enterprise, providethe following financial services and incentives:

Identifies entrepreneurs, and projects which require financialassistance

Provides information on the sources of finance Assists enterprises with the preparation of business plans, project

proposals and other loan application documents

Monitor, establish and design standards for loan administration,effective use of loan funds and repayment mechanism byenterprise so as to curb misuse of financial resourceso venture capital

TR12.2

Exemptions

An enterprise registered Under Zambia Development Agency is entitled tothe following incentives

Exemption from paying of tax on income for The first three years of operation for an enterprise operating in an

urban area The first five years of operation for an enterprise in rural area Operating of a manufacturing enterprise for the first five years

without manufacturing licence Exemption form payment of licensing fees Exemption from payment of rents on factory premises for the first

five years Trade licensing act shall does not apply to such enterprise

Reference Material

1. Small Enterprise Development Act No. 26 of 1996


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MODULE NO. 138-02-A

MODULE TITLE: Developing Entrepreneurial Competences

MODULE: INTRODUCTION

MODULE AIM

The aim of the module is to build entrepreneurial competences, attitudinalchange that will lead to self motivation and generation of business ideas.

LEARNING OBJECTIVES

At the end of the module, Trainees will be able to:1. Demonstrate self motivation;2. Develop business ideas,3. Identify and select business opportunities;4. Mobilise resources,5. Network for enterprise development;6. Implement business decisions,


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UNIT A2.1 Developing Self Motivation

2.1.1 Entrepreneurial Traits and Characteristics

Session Duration: Two Hours

Session Rationale

The reasoning behind this session on entrepreneurial traits is that it enablesyour learners to explain what drives the individuals that have succeeded inenterprise development. It also enables the learners assess their ability toventure into the entrepreneurial career. In the end, it will isolate their

personality strengths and weaknesses to start an enterprise. The sessionaffords them an opportunity to identify weak points that they can dosomething about.

Entrepreneurial Attributes

Entrepreneurs are not the same since they come from different backgroundwith varying interests in business types. However, the similarities aboutentrepreneurs are the common personality traits they share and apply to

succeed in developing a successful enterprise.


On completion of this session, the trainee will be able to:

1. Describe entrepreneurial traits and characteristics;2. List the entrepreneurial traits and characteristics;3. Explain the relationship between entrepreneurial traits and

characteristics and the success of the enterprise;


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Learning Outcomes

The learning outcomes are:

1. Entrepreneurial traits and characteristics correctly describe;2. The entrepreneurial traits and characteristics listed3. The relationship between entrepreneurial traits and characteristics

and the success of the enterprise explained;

Learner Activities/Environment

In this session, Learners will brain storm on the meaning of entrepreneurstraits. The learners will then identify traits and attributes that make

individuals succeed in business. A list of traits and attributes will bedeveloped. The learners will identify situations that will require theapplication of the entrepreneurial traits to ensure success of an enterprise.

Instructional methodology

1. Introduction Introduce the session by reviewing the session objectives,

learning outcomes and the learning activities.

Refer the learners to the session on entrepreneurship; Ask Learners to define the word entrepreneurship. Record the main parts of the definitions on the board Draw the attention of the Learners to the fact that an

entrepreneur is a person like you and any one of them; Explain that to understand entrepreneur one needs to

understand his/her personality


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2. Main Activities Ask the learners to define the words traits. Write down the responses on the body or flip chart paper; Make a brief presentation an entrepreneur and the traits. Key points to include in your presentation are:i. There four parts to the meaning namely, person or

persons and their personality,persistent pursuing of anopportunity, the establishment of business ororganisationand the achieving of benefit and growth.

ii. Traits are a mixture of an individual set of qualities,including behaviour, nature, needs, drive and main beliefs;

iii. You are born with and other you get traits throughinformal and formal training.

iv.

Influencing factors of entrepreneurial traits andcharacteristics;v. These traits have been observed through observation and

studies among successful business persons in a number ofcountries;

vi. Give example of entrepreneurial traits and how anentrepreneur is able to draw on their traits to solvebusiness problems.

Divide the class into four groups; if the class is small dividethem in such way that there are at least three people in onegroup but not more than five;

Write down the following instructions on the board :i. List the common traits and characteristics common

among successful entrepreneurs;ii. Explain how the entrepreneurs apply the trait or

characteristic listed to solve problems experienced inbusiness?

iii. Complete the table below on a flip chart paper;

iv. Present the results to plenary;v. Allocate time for the assignment (Time may vary from

one class to another the exercise should not take morethan 45 minutes)


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Entrepreneurial Traits Application Table

No. Entrepreneurial

Traits

Business Challenge Application of

the Traits

During the presentation, ask for the feedback from the otherlearners;

Clarify issues that may arise from the presentation andfeedback from other learners;

Finally, give your overall feedback;

3. Conclusion Ask Learners to identify key points that emerged from the

learning experience and discussion. Ask them to state the general conclusions from the lesson. Key Points to note are:

i. Definition of entrepreneurial traits;ii. List of entrepreneurial traits and their meaning;iii. Success in Business and Entrepreneurial Traits

Trainer Preparation:

Review the materials on Entrepreneurial traits; Organise all the materials needed for the session (Hand outs,

markers, Flip Chart paper) Draw the Entrepreneurial Traits Application table;


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Prepare an example on the application of known entrepreneur inyour area and their known personality that helps the individualsolve difficult problems.

Trainer Tips:

Note that no one individual can have all the traits listed. However, the traitscan be developed. Alternatively, one can go into business with otherindividual who possess the missing traits. This explain why individual team upto draw on their personality strengths to from a formidable team ofinvestors.

Reference Materials:

1. Mathew Sartwell, Napoleon Hills Keys to Success; Piatkus, London,1995

2. Thomas W. Zimmerer and Norman M. Scarborough, Essentials ofEntrepreneurship, Pearson International,

Assessment Criteria and methodology:

Criteria

Entrepreneurial traits and characteristics correctly listed and explained; Traits and characteristics as they relate to enterprise success correctly

explained;

Methods

Individual Assignment; Group Exercise; Tutorials;

Session Evaluation

Collect and analyse the data on the following:i. Effectiveness of Training Usedii. Usefulness of Entrepreneurs Traits and characteristics

to Learners career;


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iii. Relevance of Training Material to the sessioniv. Mastery of Skills or Subject by Learners

LEARNERS HAND OUT

What are entrepreneurial Traits?

In the first module you were introduced to the meaning of an entrepreneur.You must understand that there are many meanings of the termentrepreneur. In all explanations you will come across or create yourself, youmay notice that there four parts to the meaning namely, person or personsand their personality, persistent pursuing of an opportunity, theestablishment of business or organisationand the achieving of benefit and

growth. Traits are a mixture of an individual set of qualities, includingbehaviour, nature, needs, drive and main beliefs.These traits you are bornwith and other you get them through informal and formal training.

The traits are influenced by:

Characteristics they born with; Culture of the community (society); Family, work and; Education; Political and policy environment

These sources of influence either encourage or discourage the growth ofentrepreneurship.

The Entrepreneurial Traits and Characteristics List

Entrepreneurs are successful for a number of reasons. In this session weshall discuss the entrepreneurial traits and characteristics. You may askwhat are traits and characteristics. These traits have been observedthrough observation and studies among successful business persons in anumber of countries. Let us look at some of the traits and characteristics.Do you have the following traits?


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i. You set clear goals You road to success must begin with asking

yourself where you are going. The existence of a clear and specificpurpose, aim or goal is the starting point for your road toachievement.

ii.You are committed - You have belief in what you are capable ofachieving; you are committed to your team and the people you workwith in the business.

iii.You act on opportunities identify and act on new or unusual business

opportunities by looking for resources to create something valuable.

iv.You have initiative you are self-reliant, and have willingness toinitiate action without needing or taking direction from others andhave ability to solve problems.

v.You are persistent you do not tire to hunt for success despitedifficulties on the road to success. If one door closes on you anotheris identified and opened.

vi.You have strong passion - a driving passion to carry out your idea, beit in the form of a new technology, a different approach, a morethorough application of known technologies or a combination of allthree.

vii.You have strong self-confidence. You are willing to be lonely andmake tough decisions and believing you are right despite the majoritythinking you are wrong.

viii.You are disciplined you have self control to plan and carry out theplan. You know where you are going and how you will get there because

you have refined your goal into action and you have put in measures tocheck progress.


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ix.You are a moderate risk taker - You are not a gambler who throws

around money without having control over the results of your action.Many people think entrepreneurs are generally thought of astremendous risk takers. You as an entrepreneur are advised to focuson reducing risk deliberately by planning and managing the businesswell.

x.You are knowledgeable about business - You look for informationwithin the business or its surroundings to help you achieve yourpurpose or avoid problems

The list of these traits is not exhausted. You may think of othercharacteristics or remember certain behavior among the business persons

you have come across.

Success in Business and Entrepreneurial Traits

Like many nice things in life, owning and managing a business successfully istough. Business is not for the weak in body and mind. In business there aremany dangers. You many lose your effort, time and money you have put in thebusiness. Or the business many be a problem to other people who are not inany way connected to it.

The entrepreneur to successfully own a business goes through the followingactivities: Identifies and develops a business opportunity ( to be discussed in the

next sessions); Develops a business strategy (way of doing business); Mobilise resources to start the business; Start the business; Expand the business;

There are many opportunities out there unless one has a trait of identifyingand developing them, they remain unexploited. To develop a businessstrategy requires developing a clear goal, information, passion and


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commitment. There are enough negative influences from your friends,family and community to discourage you put the idea on hold nay put theeasy way out and seek employment.For a business activities to start you need resources but resources are few

and those who have resources are not easy to help. This is one of thestrongest tests to starting a business. I am sure you have met many peoplesay that they are unable to go into business because of lack of resources.You need to rely on some of the traits above, namely, seeking information onresource providers, persistent in asking fro support even when you havebeen turned down several times and showing confidence in what you plan todo to win over others.

A new business has as many needs for care as a newly born baby. In a new

business almost everything is new, the owners, customers, employees andsuppliers are new. In addition the business belongings are new. In this newenvironment mistakes are bound to be made. The entrepreneur needs tohave the character to be focused and apply some of his/her traits such asbeing disciplined to handle temptations, having the goal in mind despitecurrent difficulties, having personal initiative to solve problems. Some ofthe problems experienced by start up are as follows: Lack of experience; Low capital, poor cost control; Poor location; Too much stock; Excessive buying of fixed assets; Poor customer care; Poor planning; Poor execution of plans; Negative attitudes to work among employees

A business that is expanding will need new management to take care ofincreased responsibilities. If the entrepreneur was owner-manager it is time

to take initiative and take the opportunity of employing experienced andskilled human resource in the business.


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Summary

In this session, we described traits of an entrepreneur. We looked at thebehaviour of a person that influences entrepreneurial activities. Tenentrepreneurial traits have been listed and explained. Lastly theentrepreneurial traits have been linked to the success of a business throughthe main activities of an entrepreneur starting from opportunityidentification to expanding the business. Each of the entrepreneur traits,goal setting, commitment, opportunity seeking, personal initiative,persistent, passion, self discipline and information seeking can be applied ateach stage of the entrepreneurial stage.

Exercise

Answer the following questions:1. Name one successful entrepreneur you know very well. Discuss the

entrepreneurial traits that have been observed displayed by theentrepreneur you have mentioned.

2. Explain how training can help develop entrepreneurial traits?


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2.1.2: DISCOVERING YOURSELF

Session Duration: 4 Hours

Session Rationale

It is important for the learners to discover their personality in order to seewhether entrepreneurship is for them. The personality may assist learnerschose a business that will be enjoyable rather than a punishment. What theyenjoy doing has a relationship with type of personality they have.


An entrepreneur needs certain personal talents, skills and experiences toestablish and manage an enterprise. An entrepreneur is an individual whothrough socialization and formal education and training has acquiredknowledge and skills that should be applied in the business. Discovery oneselfalso helps in understanding your strong and weak points. It assists inrealizing that one needs the support of others to succeed in business.


On completion of this session, the trainee will be able to:

1. Describe personal attributes and talents;2. Identify personal attributes and talents;3. Relate talents and attributes to entrepreneurial success.

Learning Outcomes

The learning outcomes are:

1. Personal attributes and talents correctly described;2. Personal attributes and talents identified;3. Personal talents and attributes related to entrepreneurial success.


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Learner Activities/EnvironmentIn this session Learners will describe the terms personal attributes.Learners will identify a business person interview him/her and identify the

talents and attributes he/she may have.



learning outcomes and the learning activities. Refer the learners to the session on entrepreneurship traits; Ask Learners in groups of two to describe the terms personal

attributes. Ask them to write them on paper and one every group is

through collect all the description; Stick the papers on the wall; Review the definitions and identify common words, Write down a definition on the board;

2. Main Activities Explain the importance of understanding and taking note of

personal attributes and talents in entrepreneurship; Key points to include in your presentation are:

i. Motivation to go into business;ii. Career choice;iii. Type of business to start;iv. Size of business.

Explain the attributes and talents as outlined in the LearnersManual;

Form groups of four and assign them to the following:

i. Identify the local business person:ii. Visit the Business person, interview him and identify thetalents and attributes he/she may have:

iii. The following guide may assist the Learners ask thequestions:


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Interview Check List

Ask these questions. The answers to these Questionsmay Yes OR No . Ask for explanations to theanswers.

a. Why do like this type of business?b. How do you spend your free time?c. What is your attitude towards parties and

people eventsd. What is the role of friends in business?e. Who do you find difficulties to influence in

your business and why?f. What are the challenges you experience in

planning and organizing?

g. What is the most difficult thing to control,in business?h. What are your human resources

opportunities and challenges?

i. What is your view about partnerships?j. What are the advantages of owning a

business alone?k. What do you find exciting marketing and

selling to customers?

l. Who prepares financial statements in yourbusiness and why?m. Who manages the production section of your

business? What are the reasons for theanswer?

n. Do you always find that there is not enoughtime in any day? Why?

Ask the Trainees to present;

Ask for feed back from the class;Present the highlights of all the presentations


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learning experience and discussion. Ask them to state the general conclusions from the lesson. Key Points to note are:i. Explanation of personal attributes;

ii. List of entrepreneurial attributes and talents;iii. Highlights of the short field investigation.

Trainer Preparation: Review the materials on Self Discover; Organise all the materials needed for the session (Hand outs,

markers, Flip Chart paper) Prepare Interview Check List; Identify business persons that may be interviewed; Organise interview logistics

Trainer Tips:

To cut on costs you may have to invite the business persons to school to beinterviewed in class by the Learners. You need to emphasize that one doesnot need to have all the attributes to succeed in business.

Reference Materials

1. Beardwell Ian, Huaman Resources Management, Prentice Hall Essex,1994;

2. Mathew Sartwell, Napoleon Hills Keys to Success; Piatkus, London,1995

Assessment Criteria and methodology

Criteria Personal attributes and talents correctly described; Personal attributes and talents identified; Personal talents and attributes related to entrepreneurial

success.


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Methods

Individual Assignment; Group Exercise; Tutorials;

Session Evaluation

Collect and analyse the data on the following:i. Effectiveness of Training Usedii. Usefulness of Entrepreneurs discovery of oneself to

Learners career;iii. Relevance of Training Material to the sessioniv. Mastery of Skills or Subject by Learners

LEARNERS HAND OUT

What Are Personal Attributes and Talents?

You have personal attributes and talents that can make you succeed inbusiness. Personal attributes and talents are the right skills and abilities forthe job. A successful career in business is an outlet for your personality,interests, skills and values. So what are your personality, interests, skills andvalues? The sum total of these qualities is called your personality.

Understanding your personality can tell you such things as how muchencouragement you need from other people to do anything. Or are you aperson who is relaxed working on your own? Are you an organised person orotherwise. Do you approach everything caution or you one who goes throughwith anything without concern?

It is important fro you discover if your personality in order to see whetherentrepreneurship is fro you. Please you must realise though that your

personality may assist you chose a business that will be enjoyable ratherthan a punishment. What you enjoy doing has a relationship with type ofpersonality you have.


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Identifying Personal Attributes and Talents

It is useful to identify your personal attributes so that you will be able todecide on what type of business is suitable you. These attributes will also be

useful in identifying business opportunities, establishing the business,managing the business and initiating its growth.

Ask yourself the following questions: Do you like to work with machines and tools? Do you like to observe, learn, examine, analyze, and solve problems? Do you like to use your imagination or creativity to solve problems? Do you like to work with people; to inform, enlighten, help, train, develop

or cure them;

Do you like to work with people to influence, persuade, lead, or managefor organizational goals or economic gain? Do you like to work with data? Do you have functional skills? (Skills not necessarily associated with a

specific job and are used to accomplish general tasks or functions of ajob e.g. problem solving);

Do you have content skills called work-content skills, specific andspecialized to one job, such as preparing a financial statement, or fixinga car?

Do you have adaptive skillsand ability to learn quickly, teamwork, beingself motivated, self-awareness, empathy, persistence, optimism, andsocial deftness;

Applying talents and attributes to entrepreneurial success

There are a number of skills you'll need to succeed as an entrepreneur. Youshould not worry if you do not possess them all. As an entrepreneur you canalways employ people with those skills to add to your abilities.Below are skills you may need now or later to help you in business:

Interpersonal Skills

As an entrepreneur you should have good people skills. Your ability to freelymix with many people is a valuable asset that is worthy more than the money

you may have in a bank. When people like you, its is very likely they will likeyour business too.


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Networking Skills

Networking can be a useful business approach to establish build partnershipsand discover new business contacts. A successful entrepreneur is a net

worker. You must be visible and easy to remember in gatherings.

Leadership Skills

Leadership is the ability to influence. Once you are an entrepreneur itmeans you have taken up a leadership role. You may be owner-manager worker (OMW), the skills of leadership is very important.

Management Skills

Management skills mean planning, organising, leading and controlling activities

that cover operation, employees, customer, suppliers, and governmentagencies.

Employee Relation Skills

Employees are the most important resource your business has. It is essentialthat you manage this resource very carefully. It is a resource that can comein today and walk out tomorrow. A good relationship with Human resource willmake your life much easier

Team Building Skills

You must build a team of essential professionals who you share the samevision. You do possess all the needed skills and experience assembling a teamof employees, partners, accountants, your lawyers, and bakers will take yourbusiness to a higher level.

Marketing and Sales Skills

Marketing and selling skills are essential to bringing in revenue. Unless thecustomer is aware of and interested in what you are selling they will neverbuy. If marketing and selling are difficult employ a sales person.

Financial Management skills

Understanding cash flow will save you business going under faster than youcan register it. The danger areas are poor working capital, cash withdraws bythe owner, credit mismanagement, and misunderstanding of cash surplus andprofit.


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Time Management Skills

Time cannot be stored for future use. It cannot be bought from a shop. It isnot elastic. You can only use or misuse time available. Time is one of the

resources whose value is underestimated until it is too late. There a numberof ways that will increase the wastage of time namely: meetings, poorplanning, repeated interruptions, failure to list priorities, failure to delegate,being disorganised, indiscipline and failure to say no.

Do not worry if you not have these skills. Many people even those who havebeen running business for many years do not have all these skills. As anentrepreneur, however, you must learn some of these skills to help you runthe business effectively.

SUMMARY

Every one has personal attributes and talents that can make one succeed inbusiness. You need to have personal attributes and talents that are rightskills and abilities for the particular career. There are a number of skills oneneeds to succeed as an entrepreneur. The skills are interpersonal, marketing,management, and technical skills. You should not worry if do not possessthem all. As an entrepreneur is you can employ people with those skills to addto your abilities.

Summary

In this unit we discussed that a successful career in business is an outletfor your personality, interests, skills and values. We emphasise that it isvaluable to recognize your personal attributes so that you will be able todecide on what type of business is suitable you. In addition an entrepreneurcan employ people with those skills to add to ones abilities. There areinterpersonal, marketing, management skills, technical and communicationskills you need now or later to help you in business


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Exercise

Answer the following questions:

1. Explain the purpose of identifying your personal attributes andtalents;

2. List the personal talents and skills you possess?3. What personal attributes and talents do you possess that you can

rely on in your career as an entrepreneur?4. What talents and skills needed in business that you do not

possess?5. How would you compensate for these weaknesses?


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2.1.3: POSITIVE THINKING

Session Duration: Two Hours

Session Rationale

What one thinks about somehow transform itself into the physical reality. Ifone expects to fail, you will fail and if you expect to win you will win. If anindividual has a positive thoughts and attitude towards success in businessthe mind sets you up in a position to succeed.


In entrepreneurship success depends on having a positive outlook. A positiveoutlook emerges from positive thinking. Ones success is determined by oneslimitations. In entrepreneurship career there are many challenges and risks,if one is negative mind success will be hard to achieve.

Learning Objectives:

On completion of this session, the trainees will be able to:

1. Describe positive thinking;2. Explain the thinking process;3. Apply the process of positive thinking to an entrepreneurial success

Learning Outcomes

The learning outcomes are:1. Positive thinking described;2. The thinking process explained;3. The process of positive thinking applied to entrepreneurial success.


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Learner Activities/Environment

Learners will define the word positive thinking. Learners will proposeapplications for mind setting to improve the chances of their success inbusiness.



learning outcomes and the learning activities. Ask Learners to define the word positive thinking. Record the main parts of the definitions on the board Draw the attention of the Learners to the fact that

entrepreneurship success depends on having a positive outlook

2. Main Activities Make a presentation of on the thinking process; Points to cover are;

i. The Mind Does not Make Judgments

ii. The Mind Will Attract Everything to Meet Your Goalsiii. The Mind needs to know that your Goal is Possibleiv. The Mind Understands only Positive Instructionsv. The Mind sees No Difference between Real and Unrealvi. The Mind will answer All Your Questions

Outline through a lecture the process of mind setting Major points to include in the presentation are;

i. Conscious and subconscious mind;

ii. Negative and positive thoughts;

Ask Learners how they can apply mind setting to improve thechances of their success in business;

Instruct the Learners to present their results; Review the results


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learning experience and discussion. Ask them to state the general conclusions from the lesson.

Trainer Preparation: Review the materials on Positive Thinking; Organise all the materials needed for the session (Hand outs,

markers, Flip Chart paper) Prepare an example on the application of known entrepreneur in

your area and their known personality that helps the individualsolve difficult problems.

Trainer Tips:You may give the example of the believes on their devotion to reading thebible and regularly attending church services and meetings as another way ofmind setting.

Reference Materials:1. Hill Napoleon; Positive Action Plan How to Make Every Day a

Success, Piatkus, London, 1996;

2. Mathew Sartwell, Napoleon Hills Keys to Success; Piatkus, London,1995;

Assessment Criteria and methodology:

Criteria

Positive thinking described; The thinking process explained; The process of positive thinking applied to entrepreneurial success.

Methods Individual Assignment; Group Exercise; Tutorials;


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Session Evaluation Collect and analyse the data on the following:

i. Effectiveness of Training Usedii. Usefulness of Positive Thinking to Learners career;

iii. Relevance of Training Material to the sessioniv. Mastery of Skills or Subject by Learners

LEARNERS HAND OUT

Description of positive thinking

If you expect to win you will win and conversely if you expect to lose you willlose. It is a matter of your attitude. What is an attitude? It is a mental

make-up, usual frame of mind. Attitudes are part of the abilities. The abilityto interact socially requires certain attitudes. All of our feelings, beliefs andknowledge are based on our internal thoughts, both conscious andsubconscious. You are in control, whether you know it or not. We can bepositive or negative, enthusiastic or dull, active or passive.

The Thinking Process

The mind has tremendous power that can be used to make your life better.

You mind can be conditioned to think positively to bring desirable changes toyour life. You as a human being you are created with enough resources to besuccessful in the field of your choice.

The mind is the mental power that enables you and me to: Think; Make choices, Experience emotions

The mind is the seat of intelligence and memory. The mind is divided into twoparts of activities known as:

Conscious Mind; Subconscious Mind

The conscious mind enables you to:


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Use numbers in calculations; Words in speech; Controls muscular movements; Make decisions

The subconscious mind on the other hand enables: Management of internal organs workings such heartbeat, breathing,

digestion and blood circulation (touch the wrist do feel the bloodcirculation);

Imagination (close your eyes and imagine you own the biggest bank inZambia);

Reactions to emotional stimulation (do you remember the last time youlaughed);

Automatic reproduction of activities learnt over time (are able to writehe word Entrepreneur without looking at spelling in this manual?

How Does the Mind Work?

Transforming Thoughts into Reality

The mind can c

Entrepreneurship Development Manual for Trainers or Instructors

Documents

Transcript of Entrepreneurship Development Manual for Trainers or Instructors