Entrepreneurship: Entrepreneurship Level 2 1 Future Managers

Entrepreneurship
Entrepreneurship Level 2
Future Managers
What we cover
The entrepreneur
Identify and discuss the characteristics of an entrepreneur Advantages and disadvantages of entrepreneurship Identify good business ideas Discuss and prepare a SWOT analysis
Future Managers
What we cover
Marketing and customer relations
Identify potential customers for a new venture Survey opinions for products of the new venture Promote product / service of the new venture Discuss customer relations Explain basic principles of negotiation to secure new business
Future Managers
What we cover
Basic finances
Basic financial terminology Processes and principles for pricing a product Financial management, record keeping and stock control
Manage time and work processes

Create and maintain a task list Use and maintain a diary
Entrepreneurship Level 2 Future Managers 4
What we cover
Manage time and work processes
Create and maintain a task list Use and maintain a diary Proritise tasks Plan and follow a work schedule Compile entrepreneurial goals
The Business Plan

Planning your business plan Assessing the components of a given business plan
Module 1: The Entrepreneur
Future Managers
Module 1: The Entrepreneur

After completing this module, you will be able to:
identify and discuss the characteristics of an entrepreneur identify advantages of entrepreneurship and the reasons why it fails identify entrepreneurial opportunities discuss and prepare a SWOT analysis
Future Managers
1. Identify and discuss the characteristics of an entrepreneur

At the end of this outcome, you should be able to:
define the concept of entrepreneurship identify and discuss, by means of an explanation and examples the characteristics required of an entrepreneur to start a successful small business differentiate between the skills, personality traits and values of an entrepreneur

1.1 Defining Entrepreneurship

What is entrepreneurship?
Key words
Unfulfilled need Opportunity Profitable business Uncertainty Risk-taker
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What is entrepreneurship?
Hunter spirit
enterprising restless enduring innovative have the capacity to work hard and to take risks improvise
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There are three essential requirements for becoming an entrepreneur. Do you have any idea what they are?
Technical requirements Business requirements Management requirements
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1.2 Characteristics of an entrepreneur

See if you can name some of the characteristics of a successful entrepreneur
Confidence in your ability to succeed Preference for moderate risk Desire for responsibility Energetic Identifying opportunities Organising skills Need to achieve Desire for immediate feedback
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1.2 Characteristics of an entrepreneur
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Activity 1
Identify one successful entrepreneur either in your own community or someone that is often in the news
1. Write a brief description about this person 2. In a table format, give examples of how this individual meets the technical, business and management requirements of a successful entrepreneur
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Activity 2
How do you know whether or not you will be a good entrepreneur? The answer is not an easy one. There are so many different aspects that might influence your success or failure as an entrepreneur. If you have just lost your job and have children at home, your urge to achieve is so much greater. The questionnaire on page 7 is a general guideline. Will it help you to answer this difficult question? Follow the instructions and decide for yourself.
Activity 2
Instructions
1. Complete the questionnaire on page 7 of your text book individually by answering yes or no to each question 2. Count how many yes and how many no answers you have given 3. Add all the yes answers of your group together. What is the total? 4. Divide the total by the number of members in your group. What is your group average? 5. Is your own average above or below the group? 6. According to your group, which question is the most important question requiring a yes answer? Give reasons for your answer.
1.3 Skills, personality traits and values of the entrepreneur

1.3.1 What do you think the main personality traits of an entrepreneur are?
Outgoing Willing to take calculated risks Optimistic Self-actualisation Meticulous Creative and innovative Leadership qualities
1.3 Skills, personality traits and values of the entrepreneur

1.3.2 Quickly, brainstorm what you think are important skills for the entrepreneur to have
Computer literacy Technical skills Inter-personal skills Accounting and bookkeeping skills Management skills
1.3.3 Values for an entrepreneur

Do you know what Ubuntu is? Ubuntu values for the entrepreneur include:
Respect for human dignity Sharing of success Goodwill Trust and honesty Continuous cross-cultural interaction Pride in achieving goals A discrimination-free workplace
1.3.3 Values of an entrepreneur

Values which are not acceptable
Accumulation for the sake of accumulation Selfishness and individualism Corruption Empowerment which is equal to selfenrichment
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Activity 3: The ubuntu debate

Read the definition of entrepreneurship again and compare it with the values of ubuntu. Listed below are a number of topics you will debate within your groups. Study the topics below and choose one
Ubuntu is the opposite of entrepreneurship. Entrepreneurship can help with the implementation of ubuntu. Entrepreneurship is all about the individual Ubuntu is what South Africa needs
Business plan activity

1. In your business plan workbook, find the Self analysis section and complete it to the best of your ability 2. Ask a member of your group to read your self-analysis and to say what he or she thinks. Other people often see positives and negatives in us of which we are not even aware. This will help you to remain realistic.
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Case Study
Read the case study on page 13 and answer the questions that follow:
1. Hamsa Faroqui is the MD of a satellite radio company in South Africa. What is the name of his company? 2. What is Hamsas golden rule for starting a business? 3. List 5 characteristics Hamsa views as very important to start a business 4. According to Hamsa, what does it take to be a successful entrepreneur?
2. Advantages and disadvantages of entrepreneurship

Identify the merits (advantages) of an entrepreneur Discuss with examples reasons why entrepreneurs fail or succeed Describe the business environment Describe the economic environment, with emphasis on the need and importance of the entrepreneur within this environment Explain how a small business is influenced by the external business environment
2.1 Merits of being an entrepreneur

What is beneficial to you about being an entrepreneur?
You reach your full potential You reap profits You contribute to society and are recognised for your efforts You gain control over your own destiny
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2.2 Reasons why entrepreneurs succeed or fail

Management skill Experience Financial control Changes in the business environment
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2.3 The business environment

What factors make up the business environment?
Environment Customers
Suppliers
Technological forces
Business Environment
Competitors
Cultural forces
Economy
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Government
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2.3.1 Customers
Personal development needs Status and esteem needs Social needs Security and safety needs Physiological needs
2.3.2 Suppliers
Good suppliers will supply the following:
Good quality materials. Essential for:
Reduction in waste Reducing defects in products Reducing labour time Reducing returns from customers Losing dissatisfied customers
Excellent service Reasonable pricing

2.3.3 Competitors
How can you gain the edge over your competitors?
Price Promotions Better customer service Improvements on products and services Difficult business concept
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2.3.4 Government
Government can create conditions which make it easier for small businesses (or harder) The effects of legislation
New legislation can create or take away opportunities New legislation can make certain companies more competitive while others will become less competitive (think of BEE) Legislation can also protect South African industries through tariffs and quotas (do you think this is a good thing? Why?
2.3.5 Economy
What are the effects of each of the following?
Interest rates Inflation Exchange rates Increased government spending An economic downturn An end to the Zimbabwe crisis
2.3.5 Economy
Why are entrepreneurs important?
New businesses create jobs and therefore reduce unemployment New businesses make profits and are taxed by the government. Taxes are used to improve the living conditions of all South Africans People with jobs are less likely to get involved with crime New businesses employ previously unemployed people and the employees start paying taxes New businesses make our country more competitive internationally
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2.3.7 Technological forces

Q: What is technology? A: Any item, technique or know-how that helps a business sell a product or service It includes the following:
Machinery Telecommunication Computers Equipment Tools
Activity 5
MP3 players or iPods are computerised devices that record and play music
Which specific business environment was affected by the arrival of MP3 players? Name 3 other products that were or will be affected by the arrival of MP3 players Does this development provide any new business opportunities?
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2.3.8 Natural environment

What are the threats to the environment?
Overpopulation Pollution Wrong farming methods Poaching General carelessness regarding the ecosystem
What must entrepreneurs do or not do, with regard to the environment?

3. Identify good business ideas

prepare an individual entrepreneurial profile. using this information, prepare a SWOT analysis develop a personal growth programme to attend to identified skills weaknesses that need addressing define and give generic examples of evaluation tools that can be used to measure strengths & weaknesses identify measurement and evaluation tools used to maximise strengths and reduce weaknesses identify entrepreneurial opportunities within your own entrepreneurial profile and personal growth plan
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3. Identify good business ideas

Needs across socio-economic groups
Socio-Economic group Unemployed group Lower income group Primary focus Category 1 needs Category 2
Middle income group

High income group
Category 3 + 4
Category 4 + 5
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Activity 6
1. Select three different needs from category four or five and write them down. Next to each one of them write a need selected from category one 2. For each one of the three discuss how you would feel about the category five need if the corresponding category one need is not satisfied 3. Summarise the groups reaction or feelings to each of the three categories. Present your groups final conclusion to the rest of the class 4. Given your above discussion, where should your focus be when trying to identify a new business idea?
Activity 7
Make a list of 5 products or services that people in your community need and are able to afford 1. Look at this list and try to write down examples of a business that will deal with the different needs. This can be done in small groups, each group discussing all the needs in one category 2. Use these lists in the next section when experimenting with the different creativity techniques.
3.1 Innovation and creativity

1. 2. 3. 4. 5. 6. Hobbies, sport and entertainment Shopping Travelling Watching television Reading newspapers and magazines Internet
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3.1 Innovation and creativity

7. Trade shows and exhibitions 8. Places where people gather 9. Flea markets 10.Innovation 11.Gaps in the market
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Activity 8
Visit www.google.co.za and type in business ideas
How many ideas are listed? Write down five ideas of which you have never heard Identify five ideas that interest you or that you would like to know more about Click on one of the ideas that you like and print the details given
3.2 Creative methods
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3.2 Creative methods

Brainstorming What if? Mind mapping Generation of alternatives Reverse method
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3.2.1 Brainstorming
1. 2. 3. Form a group of 5 members Appoint a writer who will write down all the ideas Elect a chairperson who must make sure that the group does not comment or laugh at one anothers contributions 4. Write the problem or challenge on a big board or piece of paper 5. Decide on the time 5 minutes is normally long enough 6. Ideas time! all ideas, thoughts, suggestions, etc. are written down. The golden rule is that members are not allowed to comment on one anothers contributions during this period 7. Times up 8. Group the thoughts. The chairperson, with the help of the group, tries to group similar thoughts together. Even the silly ones are grouped 9. Try to link groups, especially those that have nothing to do with one another 10. Reaching conclusions. Did this new way of looking at an old problem result in a new idea?
Activity 9
The following are problems (you may identify your own or use the list of needs):
Getting rid of crime in your area Lack of fresh water in your residential area Very expensive medicine
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3.3 Is it a good business idea

Try to think of some ideas for starting a business Now evaluate which ones you think work and which dont
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Activity 10
Choose any business idea from the list of possible businesses ideas. Write any four types of skills and/or knowledge that a person who starts such a business will require. Compare it with other members of your group. Is there something you did not think about?
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It is now the time to decide which business idea interests you; about which you have the most knowledge and want to investigate further. This business idea will form the basis of all the activities that follow and will lead to a formal business plan. Write down your business idea with a short description in your Business Plan Workbook and submit it for approval.
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3.4 Protecting your ideas

Secrecy Patents Trademarks Copyright Piracy
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4. Discuss and prepare a SWOT analysis

At the end of this outcome, you should be able to: Prepare an individual entrepreneurial profile (selfanalysis) Using this information, prepare a SWOT (Strength; Weaknesses Opportunities and Threats) analysis Define and give generic examples of evaluation tools that can be used to measure strengths and weaknesses Identify measurement and evaluation tools used to maximise strengths and reduce weaknesses.
4.1 Individual entrepreneurial profile

Step 1: Match your ideas to your personal resources
Knowledge and skills Contacts and friends Finance
Costing and pricing Break-even point Cost of inventory and debtors
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4.1 Individual entrepreneurial profile

Step 2: Identify your critical success factors
Factors that are critical for your business to succeed What are the critical success factors for a taxi business?
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4.3 Compile a SWOT analysis

Strengths and Weaknesses deal with your own current situation, the here and now while Opportunities and Threats will happen sometime in the future Strengths and Weaknesses normally refer to you as a person or matters inside your business, while Opportunities and Threats mostly come from outside the business You have less control over Opportunities and Threats You can still do something about your Strengths and Weaknesses.
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
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4.4 Evaluation tools

Psychometric tests Thomas profile Myers-Briggs Type Index Some of tests can be done freely on the web. Try googling MBTI
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Activity 11
1. Consider asking a friend or colleague to provide you with their opinion of your Strengths and Weaknesses using the SWOT analysis tick-list below. Ask them to be as honest as possible and thus provide you with a wider and more realistic perspective of yourself. 2. Complete the personal SWOT in your business plan workbook by following steps 1 to 4.
Activity 11
Step 1 - Write down ALL your Strengths, Weaknesses, Opportunities & Threats on a piece of plain A4 paper. Use a separate page for each category (including the feedback received from your friends, colleagues and family members). Step 2 - Identify key words and key phrases to describe each quality or factor. For example, you may have seen from your background information profile that you displayed a lot of tenacity in completing your studies part-time. In this case you may use the word tenacity to describe one of your strengths. Step 3 -Check words that have a similar meaning and cross out the ones that make the least sense to you. Step 4 - List each key word or phrase under the relevant heading on your SWOT map.
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Personal growth programme
Weaknesses
lack of financial skills
Growth plan
enrol in bookkeeping course
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Activity 12
Given the feedback you received from other as well as your own SWOT analysis, compile a growth plan for yourself. For each weakness or potential threat list at least one step you want to take to improve your abilities.
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Compile a SWOT analysis for your new business idea
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Case study
Keeping in mind the following guidelines, read the article on page 49 of your text book and answer the questions that follow 1. All the questions refer to a section of the theory in the module you have just studied. Try to identify that section first 2. If the section you have identified is, for example, three steps, then your answer must follow those three steps 3. Once you have followed the steps or named facts that are relevant to your answer, give your personal opinion or conclusion. In other words your answer must be backed up by facts as you give your informed opinion 4. Consider the mark allocation before you start answering. If many marks are allocated, you need to give a very detailed answer. On the other hand, if only two marks are allocated, a single word or a short phrase will be sufficient 5. The mark allocation is generally two marks per correct fact or per reason/conclusion you give. Therefore, if the question was allocated six marks, you need a correct answer plus two reasons.
Case study
1. What is the name of the traditional root discussed in the case study? (2) 2. Name two other products they now cultivate. (4) 3. Name at least two business environments that have influenced or will hopefully influence the lives of Trynah Msomi and other villagers in the KwaZulu Natal South Coast. (12 6 per environment) 4. To which Golden rule of business is the Umbumbala community adhering? (2)
Case study
5. Which one of the business idea generation techniques or creativity methods best explains how this community or Dr Modi came up with this unique business idea? (4) 6. Is this idea a good business idea? (20) 7. Which values of Ubuntu are clearly applied by the Umbumbulu community? (10) 8. How would you suggest that the Umbumbulu community should protect its business idea? (8) 9. Compile a SWOT analysis for the Ezemvelo Farmers Organisation.
Recap
Can you
identify and discuss the characteristics of an entrepreneur? identify advantages of entrepreneurship and the reasons why it fails? identify entrepreneurial opportunities? discuss and prepare a SWOT analysis?
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Recap
Can you identify and discuss the characteristics of an entrepreneur
define the concept of entrepreneurship? identify and discuss, by means of an explanation and examples the characteristics required of an entrepreneur to start a successful small business? differentiate between the skills, personality traits and values of an entrepreneur?
Recap
Can you identify the advantages and disadvantages of entrepreneurship and why it fails
Identify the merits (advantages) of an entrepreneur? Discuss with examples reasons why entrepreneurs fail or succeed? Describe the business environment? Describe the economic environment, with emphasis on the need and importance of the entrepreneur within this environment? Explain how a small business is influenced by the external business environment?
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70
Recap
Can you identify good business ideas?
Prepare an individual entrepreneurial profile? Using this information, prepare a SWOT analysis? Develop a personal growth programme to attend to identified skills weaknesses that need addressing? Define and give generic examples of evaluation tools that can be used to measure strengths & weaknesses? Identify measurement and evaluation tools used to maximise strengths and reduce weaknesses? Identify entrepreneurial opportunities within your own entrepreneurial profile and personal growth plan?
Recap
Can you discuss and prepare a SWOT analysis? Prepare an individual entrepreneurial profile (selfanalysis)? Using this information, prepare a SWOT (Strength; Weaknesses Opportunities and Threats) analysis? Define and give generic examples of evaluation tools that can be used to measure strengths and weaknesses? Identify measurement and evaluation tools used to maximise strengths and reduce weaknesses? If you can, congratulations, you are ready to move onto the next module

Entrepreneurship: Entrepreneurship Level 2 1 Future Managers

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Entrepreneurship: Entrepreneurship Level 2 1 Future Managers

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Entrepreneurship

Manage time and work processes

The Business Plan

Module 1: The Entrepreneur

Module 1: The Entrepreneur

1. Identify and discuss the characteristics of an entrepreneur

1. Identify and discuss the characteristics of an entrepreneur

1.1 Defining Entrepreneurship

1.1 Defining Entrepreneurship

1.1 Defining Entrepreneurship

1.2 Characteristics of an entrepreneur

1.2 Characteristics of an entrepreneur

Management Practice Level 2

1.3 Skills, personality traits and values of the entrepreneur

1.3 Skills, personality traits and values of the entrepreneur

1.3.3 Values for an entrepreneur

1.3.3 Values of an entrepreneur

Activity 3: The ubuntu debate

Business plan activity

2. Advantages and disadvantages of entrepreneurship

2.1 Merits of being an entrepreneur

2.2 Reasons why entrepreneurs succeed or fail

2.3 The business environment

Excellent service Reasonable pricing

2.3.7 Technological forces

2.3.8 Natural environment

What must entrepreneurs do or not do, with regard to the environment?

3. Identify good business ideas

3. Identify good business ideas

Middle income group

3.1 Innovation and creativity

3.1 Innovation and creativity

3.2 Creative methods

Management Practice Level 2

3.2 Creative methods

3.3 Is it a good business idea

Business plan activity

3.4 Protecting your ideas

4. Discuss and prepare a SWOT analysis

4.1 Individual entrepreneurial profile

4.1 Individual entrepreneurial profile

4.3 Compile a SWOT analysis

4.4 Evaluation tools

Personal growth programme

Business plan activity

1. Identify and discuss the characteristics of an entrepreneur

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