Entrepreneurship 2019-09-10

The entrepreneurial Mindset

Entrepreneur: A person who bears all the risks of combining the factors of production in order to satisfy a want or need
by operating a successful business.
Problem
Plan
Gather Resources
Operation
Profits
Entrepreneur vs. Intrapreneur
Intrapreneur: A person who works within an existing organization to create a new product or improve an existing one.
The parent company bears all risks and provides all tools and materials.

TYPES OF ENTREPRENEURSHIP
1. Nascent
- A person who is attempting to set up an independent business for the first time. The business is not yet
formed and consultations are ongoing.
2. Novice
- A novice entrepreneur has successfully launched a business for the very first time. These entrepreneurs will
need expert help, as they have some knowledge, but not enough.
3. Habitual
- The habitual entrepreneur has multiple ventures throughout his or her lifetime.
4. Serial
- This entrepreneur starts businesses but does not stick to any one for a long period of time. The
entrepreneur sells his/her businesses as soon as they become successful and starts focusing on a new
venture.
5. Portfolio
- This entrepreneur owns many successful businesses and selects a few in which high growth is achieved at
the expense of low growth in others. These entrepreneurs are regarded as expert.
CHARACTERISTICS OF ENTREPRENEURS 16. Tenacious
1. Good Leader 17. Positive/Optimistic
2. Competent 18. Good Money Management Skills
3. Team Player 19. Risk-Taker
4. Competitive 20. Flexible
5. Creative 21. Visionary
6. Problem Solver 22. Intelligent
7. Determined 23. Moral
8. Innovative 24. Practical
9. Confident 25. Critical Thinker
10. Approachable 26. Willing to Experiment
11. Ambitious 27. Proactive
12. Courageous 28. Hardworking
13. Social 29. Dynamic
14. Honest 30. Decisive
15. Resourceful
 Homework
Select any ten (10) characteristics of entrepreneurs and describe each. At the end of each description, use each
word correctly in a sentence. 40 MARKS

ENTREPRENEURSHIP 2019-09-12
MISTAKES/PITFALLS of ENTREPRENEURS

Human Resource Management

1. Failure to value the worker’s efforts and time given to the business. (If workers feel unappreciated, especially
when they go above and beyond the call of duty, they are more likely to seek new employment.)
2. Rushing to fill a vacant position. (This will lead to the hiring of persons who are not sufficiently qualified, do not
have the needed experience, or will have challenges fitting in. A loss of productivity will occur in the long run.)
3. Failure to place people in the right positions. (When persons are placed in the wrong positions, they are
underutilized, which decreases production.)
4. Failure to make regulations clear. (When the rules are clear, it leads to less wastage of time, dealing with
unnecessary infractions.
5. Failure to invest in the training of workers and their professional development.
6. Failure to maintain a system of documentation. (when documents are not maintained, it will be difficult for
management to give sanctions and commendations where necessary. It may also result in the unnecessary loss
of legal battles when workers feel that they have been treated wrongly or unfairly dismissed.)
7. Lack of proper leadership. (Workers will be uninspired and may lead to other ethical issues.)
8. Lack of knowledge. (Leads to a loss of confidence in management and poor decisions may also be made.)

Entrepreneurship 2019-09-16
 The structure of tourism refers to how the tourist industry is organized and their subdivisions. (I.e. The parts that
work together.) These parts include:
1. Attractions – Are natural features or man-made structures or services that pull people to an area. Example,
Waterfalls, beaches, Theme parks, Museums, Duty-free shopping and Gambling)
2. Tour Operators – These are persons or organizations that provide visitors with a guided experience in an area or
place. They may cover transport, access to accommodation, refreshments, and even a short history of points
along a journey.
3. Transportation – Covers the processes involved in the movement of people from one place to another in a
country or between tourist generated and tourist destination areas. It typically breaks down into
4. Accommodation and Catering
5. Tourist development

Entrepreneurship 2019-09-17
Marketing Failures
1. Failure to understand customers’ wants – (A disconnect may occur between the entrepreneur and the
customers. The good or service provided by the entrepreneur might not be what is actually demanded.)
 2. Implementing weak market strategies – The marketing strategies used must be able to grab the attention of the
target market. Advertisement, location, colour schemes, mascots, etc. are all very important.
3. Poor pricing strategies – When goods and services are not properly priced the target market will be unwilling to
purchase or may not purchase enough to keep the business feasible.
4. Uncontrolled Growth – If a business grows too quickly it may be unable to satisfy all its customers or grow faster
than its customer base

Financial Failures
1. Failure to provide sufficient capital – If enough capital is not provided, maintaining a good level of business will
be difficult and growth of the business will be very slow or non-existent.

Entrepreneurship 2019-09-18
2. Failure to adequately record transactions – When transactions are not properly recorded, it is difficult for the
entrepreneur to keep track of the financial changes in the business. This may lead to wrong decisions being
made.
3. Failure to record the finances of the business – If an entrepreneur has challenges managing money, investors
will not be willing to invest and creditors will be unwilling to lend to the business.

Operational Failures
1. Poor inventory management – If inventory is not properly monitored, it can lead to unnecessary spending, as
the business may purchase goods that are already in stock or not being sold quickly. Theft may go undetected
and raw materials to work with may be unavailable leading to low productivity.
2. Poor Planning – If the entrepreneur leaves the running of the business to chance, then it is likely to fail.

Failure as a natural part of the Entrepreneurial process

1. Failure is a natural part of being an entrepreneur. Even with the best efforts and the most careful planning,
some things will go wrong. The entrepreneur must then be visionary to anticipate the challenges and put
measures in place to handle each situation appropriately.

FACTORS WHICH CONTRIBUTE TO THE SUCCESS OF ENTREPERENEUR

1. Do Knowing the Business in depth – The entrepreneur must have very god knowledge of what is happening in
the business almost instantaneously. As an entrepreneur, it is recommended that you do the following:
a. If you do not have the necessary knowledge, it is recommended that you get the proper education needed
to help the business achieve its goals.
b. Do thorough research of the industry. Read widely on the happenings of the industry, changes in processes
and advancements made.
c. Establish good networks with suppliers, customers and trade associations that will keep you informed of the
activities in the product market
2. Developing a solid business plan – A business plan provides the entrepreneur with the direction of the business
and creates a benchmark against which the entrepreneur will measure his/her performance. Having a poorly
written business plan is just as bad as not having a plan at all. When writing a business plan, you are forced to
think about every aspect of the business before you invest your money and time.
 3. Managing financial resources – Money is the life-blood of any business and therefore has to be managed very
carefully. Sufficient capital must be provided, sales must be able to cover expenses, and loans must be repaid in
time to avoid late fees and higher interest rates.
4. Understanding Financial Statements – The financial statements of a business must be professionally prepared
and extremely accurate. This is necessary because they will be used for the following:
a. Assessing the liquidity of the business
b. Profitability
c. Solvency
d. Efficiency
e. Calculating tax returns
5. Managing people effectively – The entrepreneur should surround him/herself with highly skilled staff through
proper recruiting and retention methods. The entrepreneur should ensure that workers are properly placed,
that they are motivated, they understand the rules of the workplace and they share the vision of the business.
The roles of each worker must be clearly stated and appropriate rewards should be given.

Entrepreneurship 2019 – 09 – 20
The roles of an entrepreneur are as follows:

1. To contribute to the advancement of technology, production and distribution processes and the development of
new products that contribute to a country’s GDP.
2. Creation of jobs for local citizens
3. Contribute to social development through social entrepreneurship. These are businesses that care for people
and the environment while providing answers to social problems.
4. Increase the standard of living for the residents of a country through innovations and improved infrastructure.
5. The development of managerial skills.
6. Allowing for self-expressions and self-actualization
7. Utilizing the natural resources of a country
8. The promotion of regional development
9. The mobilization of resources in a country
10. Economic Independence

Entrepreneurship 2019-09-24
Types of Entrepreneur
1. Survival
2. Lifestyle
3. Dynamic Growth
4. Speculative

Survival
This is the process of starting a business to ensure economic survival. This is one of the most common types in which the
entrepreneur provides for the needs of his family. These businesses tend to be sole trader types which remain small and
the entrepreneur is constantly engaged. These businesses are not geared towards acquiring long term wealth but for
survival on a daily, weekly or monthly basis.
Fast growth for this type of entrepreneurship is not advised, but the entrepreneur must keep his goals in mind while
placing the necessary infrastructure to take advantage of future opportunities.

Lifestyle
This is the organization of a business in such a way that the entrepreneur’s lifestyle remains unchanged. The business is
created to fit into an individual’s current or desired lifestyle. This type of entrepreneurship will require a larger capital
investment than survival entrepreneurship. Lifestyle entrepreneurship enables the individual to work their desired hours
while pursuing their passion. Their passion is valued just as much or even more than the business. Lifestyle
entrepreneurs do not pursue profits very aggressively as the business is aimed as their lifestyle rather than making
profits.

Dynamic
This business is created with the intention to surpass the competition in the industry. This business will take a longer
investment than the survival and lifestyle entrepreneurship. The entrepreneur ensures that all resources are optimally
allocated and the highest quality inputs are used. Greater rewards are gained at the expense of greater risk.

Speculative
Entrepreneurs look for big opportunities that are driven by advancements in technology, changes in taste and
preference, world trends and cultural interest. Entrepreneurs who are speculative are not concerned about a sustained
or stable market. Their aim is to start business when the time is right, make substantial profits and exit the market
before the tides turn. After exiting one market, they continue to look for the next upcoming trend.

Entrepreneurship 2019-09-26
Driver of Entrepreneurship
1. Institutional Support & Education – institutional support refers to aid given by the government and other
organizations in the form of laws, regulations, financing, marketing, education and training. Young men and
women have the opportunity to enrol in entrepreneurship classes at the tertiary and secondary levels. They can
also attend special entrepreneurship classes and benefit from the following institutions:
a. Joan Duncan Centre for Entrepreneurship, Ethics and Leadership (JDSEEL) – It is located in Kingston on the
campus of UTECH. It aims to foster student and staff mobility and share innovative programs that will give
its participants a competitive edge in today’s global employment market.
b. The Branson Centre for Entrepreneurship – It is located in Montego Bay, Jamaica and offers support to
entrepreneurs for the structuring and scaling of their businesses, through the provision of training,
mentoring and networking.
c. The Citi Micro entrepreneurship Awards for the Caribbean – This is a program which recognizes
microfinance institutions and micro-entrepreneurs who have demonstrated remarkable success in the
Caribbean, raise awareness of microfinance in the Caribbean, and the important role that micro-
entrepreneurs play in the economies of Caribbean countries.
d. Caribbean Research Innovation and Entrepreneurship Network (RIE) – it embraces/includes a range of key
stakeholders in the Caribbean who are active in the fields of science, technology and innovation and involves
the practical application of all three (3), to develop progressive entrepreneurial businesses for economic
and social advancements.
 e. Entrepreneurship Programme for Innovation in the Caribbean (EPIC) – This institution seeks to build a
supportive ecosystem for high growth and sustainable business throughout the Caribbean. It is funded by
the government of Canada and implemented by InfoDev and the World Bank Group.

Entrepreneurship 2019-09-27
2. Information and Communication technology – This relates to any communication device including their services
and associated applications. With the emergence of ICT, entrepreneurship is now possible on a virtual platform.
Individuals may work from home or do business on the go which eliminates high operating costs while having
the convenience of completing other personal activities. The increased access to information allows
entrepreneurs to be more competitive as information is readily available about customers, suppliers, inventories
and competitors.
3. Globalization – Entrepreneurs can take advantage of expanded markets and the increased mobilization of
resources. There is also a reduction in time, distances necessary to travel and effort needed to gain market
shares. Through globalization, entrepreneurs can become more competitive, especially if they are willing to
cooperate with each other.
4. Unemployment – Unemployment creates a hunger to move away from challenging circumstances, which leave
many to start businesses.
5. Changing demographics – Gender roles in the Caribbean are quickly changing and women are no longer content
with being housewives or ‘stay-at-home’ mothers. Many women are starting businesses from their home and
making a greater contribution to their households. Young people in Caribbean countries are also taking risks and
becoming youth entrepreneurs. This is as a result of saturated job markets which offer very little hope for them.
Young people also have the advantage of being more technologically efficient, creative, and energetic and have
more resources available, where they can learn to become good entrepreneurs.
6. Ease of entry into the informal sector – it is very easy to enter the informal centre and many entrepreneurs who
are faced with hardships, heavy documentation and the red tape of the formal sector, have turned to doing
business in the informal sector. Persons, who would not have been able to own a business in the formal sector,
are able to own their own businesses by operating in the informal sector.
7. Changing Demands – Consumers tastes and preferences will change and entrepreneurs have become adaptable
by creating new products to satisfy these new demands.
8. Attractability of entrepreneurs – The recognition given to famous entrepreneurs and the lifestyles they show,
attracts people to entrepreneurship with the hope that they too will be able to lead similar lives one day.
9. Shift to a services oriented economy – start-ups that are service oriented are less expensive than manufacturing
and extractive businesses. The service industry attracts entrepreneurs who want an easy entry without bearing
high overhead costs

Entrepreneurship 2019-10-02
Myths of Entrepreneurship
1. Entrepreneurs are born, not made. – Entrepreneurs may be born with a creative mind, high levels of energy, and
a desire to achieve, but these abilities need to be cultivated and steered in the right direction through formal
education, self development, learning new skills and receiving advice from other entrepreneurs.
2. Entrepreneurship is easy. – The mistake that many entrepreneurs make is believing they will be successful as
soon as their business is launched. This misconception arises from wanting to be like successful entrepreneurs
without studying the many pitfalls and hard work it took to pull through. They are blinded by the glamour of
success. Many successful entrepreneurs will admit they thought about giving up at least once on their journey.
Most successful entrepreneurs have experienced failure at least once.
3. All entrepreneurs are rich. – Some people are waiting to be rich before becoming entrepreneurs. Most of these
people will never become entrepreneurs. Many entrepreneurs became rich after starting their own businesses
through hard work and dedication along with strategic planning.
4. Entrepreneurship ventures and small businesses are the same. – Many people use the terms interchangeably,
but the two are not the same. A small business may be an entrepreneurship but an entrepreneurial business
may not be a small venture. Small businesses may lack crucial elements that entrepreneurial ventures possess,
such as creativity and innovation, problem solving capacity and plans for future growth of the business.
5. All you need is money to start. – Money is important for entrepreneurship, but it is not the only ingredient.
Much research and planning must take place and links have to be established.
6. Successful entrepreneurship only needs a great idea. – Many good ideas have crashed without becoming
successful ventures. This is because the entrepreneur’s thoughts that a good idea was the only thing necessary.
They did not take into account that hard work was necessary to make those ideas a reality.
7. Entrepreneurs always generate new ideas. – The entrepreneur does not have to generate a new idea in order to
have a successful venture. The entrepreneur may use successful ideas from the past, failed ideas from the past,
or a modification of existing ideas.

Entrepreneurship 2019-10-08
8. All you need is luck – Some persons believe that to be an entrepreneur, one must be lucky in life. Successful
entrepreneurship is defined by the ability to plan and successfully execute those plans. One must be prepared to
work hard which will increase their chances of getting ‘lucky’.
9. Entrepreneurs are extreme risk-takers – In order to get rewards there are risks that must be taken. The greater
the reward, the greater the initial risk will be. Entrepreneurs will prefer situations where they can influence the
outcome through calculate risk-taking. Some risks, however, are unavoidable and the entrepreneur must be
prepared for these.
10. Entrepreneurs are unacademic – Many entrepreneurs in today’s world actually dropped out of high school or
university. This has led people to believe that there is a disconnect between entrepreneurship and academic
achievement. Entrepreneurship is a discipline that can be studied and entrepreneurs can now be looked upon as
academic role models.
11. Being an entrepreneur means you have no boss – As an entrepreneur you will have several bosses including
stakeholders, including customers who will make constant demands from your business.

Entrepreneurship 2019-10-09
Entrepreneurship and Small Business Management
- What is a small business?
Moore et al (2008) – defines small businesses as an entity or venture with less than 100 employees, other determining
factors of a small business includes:
Entrepreneurship 2019-10-24
Screening & Selecting Ideas
All successful products started by exploring new ideas and identifying/pursuing the best one. To achieve this, ideas are
measured against specific criteria or the entrepreneur’s end goal for the business. This process can be long and complex
and must be well organized if the desired results are to be achieved to complete the process effectively, the
entrepreneur must do the following:
1. Ensure that you record all your ideas and that they are clear and precise.
2. Share ideas with your team and other persons you can trust who will add sensible contributions.
3. Consider all the resources needed, such as, financing, human resources, production, and marketing, and decide
if the business is able to provide them.
4. Consider the needs of your target market and match them against what the idea will offer.
5. Examine the market potential for your business to grow within that market.
6. Eliminate ideas that will not work all the time needed to examine the ideas that might work.

Opportunity Identification
As defined by, Scarborough 2011, opportunities are positive external options that a firm can exploit to accomplish its
objectives, mission or goals. They arise as of a result of factors beyond the entrepreneur’s control.
Opportunities are situations that will produce a gain on the amount spent on the production of goods and services.
The entrepreneur must continuously seek new opportunities that may arise. He or she must not be excessively involved
with internal operations but should give himself enough time to maintain an external focus to be able to sense new
opportunities. Entrepreneurs see change as an opportunity to capitalize and make profit from uncertainties in a
economy. The following result in changes in the economy
1. Changing demographics – changes in factors such as population size, age structure, ethnicity, birth rates,
employment rates and death rates. May present new opportunities for an entrepreneur. Entrepreneurs must
monitor these factors to see what their next big move will be.
2. Emerging Markets – Markets in the Caribbean and international are continuously being restructured to be
competitive in the global economy. Caribbean entrepreneurs have to strategically position themselves to be able
to take advantage of the arising opportunities.
3. New Technologies – when technologies are upgrades or new technologies are created. The entrepreneur is
provided with an opportunity to upgrade the production process or improve the goods and services provided.
This will make the entrepreneurs more relevant and competitive in the market
4. Regulatory Changes

It enables the entrepreneur to confer with some specific detail that will bring the business idea into focus. It forms the
basis for a business plan.

Sources of business concepts

New services- A business concept may be based on a new service the entrepreneur wants to place on the market. The
new service may fill a need, fill gaps in the product market or Enhance existing products

New Processes- an entrepreneur may introduce a new process used for manufacturing goods in a more efficient mannar

Entrep
November 20, 2019
In preparing a business concept for a new product the following steps must be taken
1. Prepare a statement (product summary) – the statement consists of only a few word and Cleary gives your
reason for wanting to embark on the business idea. In the statement you will communicate your passion for
fleshing out the idea and making it a reality

2. Describe the product- Describe key features of the product such as its name, components, packaging,
contents, functions, unique features etc.

3. Describe the target Market- You will need to state who will buy the product, who will use the product, the
socio-economic status for the target market, there location, the value they place on the product

4. Value Proposition- This is an explanation of why people will need the product/ why the product is useful.
Explain what will make the target market buy the product. Say why they will buy from you and not your
competitors

5. Describe your distribution channel- The consumers must be able to easily identify and access the product
the target market should know if the product is available through person-to-person selling, in retail stores,
over the internet etc.

6. Describe Positioning- This will help you to decide how to make your product the one consumers will reach
for even when surrounded by the product of your competitors

Entrep Nov 21, 2019

Identifying Resources
Resources are all the economical factors that an organisation requires to function effectively. They consist of all all
materials, money, staff, knowledge and expertise, service, assets, energy etc. that are combined to create a tangible
product for consumption which provide financial returns to the entrepreneur. In business there are three classifications
of resources:
1. Human
2. Financial
3. Physical

Human Resources - This includes all skills, talent, knowledge and effort that are used in the production process and
other areas of the business. Hiring a skilled staff in necessary for the success of any business even if resources are
limited. The recruiting process can be time consuming and financially costly, but it yields great benefits when a business
is able to attract and retain highly skilled workers whose value exceed their pay cheque. Some persons may be
specialized in the necessary expertise for the role they play.
a) General management expertise- oversees the daily operations of the business as well as individual functions
such as marketing finance and sales. The manager is required to have skills such as planning, organising and inter
personal and critical thinking. He/she must have through knowledge about the business and all functional areas

b) Marketing Expertise- plans and coordinates marketing activities, Identify target market and conduct market
research. This person must be dynamic, energetic and observant, creative and possess excellent communication
skills. This person must have thorough knowledge of the product of the business, the competition and the target
market
 c) Sales Expertise- devises strategies to achieve sales targets, manage customer accounts and motivates the sales
team. The manage must be persuasive and persistent and possess a great knowledge of the products offered by
the business. This person must have excellent presentation skills and be able to interact well with people

d) Technical expertise- Provides specific knowledge or expertise in areas such as technology and engineering. These
persons are highly skilled and will have very creative minds

e) Financial Expertise- Consoles all finances and financial statements and develops plans and strategies to achieve
long term goals. The manager must be meticulous, strict possess presentation skills and manager of accounting
style and govern management

Benefits of hiring skilled employees

1. The business gains a wealth of experience and knowledge
2. There is no need for excessive supervision
3. 3 employees are efficient so wastage is minimized
4. The business benefits from increase profits
5. The business will be able to maintain it competitiveness

Financial Resources- these are the funds in the business that will be used for various types of expediters, such as
purchasing of equipment, payments of debts and payment of wages and salaries. These resources include cash, liquid
securities and assets as well as credit lines. Money is the life blood of any organisation and must be managed properly to
ensure the business is sustainable. Maintaining short term and long-term balances are important to achieving the goals
in the respective periods of time

Physical Resources
These include all tangible assets owned by the business and in include items such as, machinery, equipment, land,
building, tools, raw materials, office supplies. Physical resources chosen will have implications on the quality of the
production and efficiency of the operations of the business. These assets must always be maintained and the person
who are using them must be trained to do so

Distribution Channels
These are the channels or mediums through which the product moves from the manufacture to the final consumer. The
channel must be carefully chosen as it affects the visibility and access to the product. The product may be distributed
through the following method

1. Direct channel of Distribution- the intermediary the consumer purchases directly from the manufacturer, this
reduces the amount paid by consumers

2. Indirect channels of Distribution – these is involvement from intermediary (wholesalers, retailers or both) before
the goods reaches the final consumer. The product is more expensive by the time it gets to the consumer as
each intermediary adds his or her profit margin

A good supplier is one who provides good and services that matches or exceeds the entrepreneur’s expectations. The
following are some factors that must be considered when selecting a supplier
 1. The supplier must provide high quality raw materials
2. The supplier must have good communication skills
3. The prices of the goods must be reasonable
4. The suppliers should be technically competent
5. The supplier must practise good business ethic
6. The supplier must be reliable
7. The suppling firm must be financially stable
8. The suppling firm must provide good customer service

Identifying a potential supplier

Potential suppliers may be identified through the following medium
1. Trade magazines
2. Expeditions
3. Trade association
4. Recommendations from other customers
5. Recommendations from other firms

It would be unwise for an entrepreneur to rely on one supplier for a major component in the business. This would put
the business at risk if the supplier in unable to meet the demand of the business due to unexpected events such as
industrial actions by your workers

January 14, 2019

Acquiring the required resources

 Acquiring financing

o Financing may be acquired internally or externally. Some internal sources of financing are
 Equity – this consists of personal investments of the owner of the venture. In the case of soul
trader and partnership equity consists of personal savings. In micro-businesses such as
companies, larges businesses the owners receive shares when they invest in the business. In
evaluating equity financing
 This type of investment is very risky it will perform poorly and investors will lose. In
contrast if the business does well investors will gain considerable funds.
 Investors have an opinion regarding how the business is run.
 Raising capital this way is not as expensive as other methods as it also does not require
and repayment.
 Control of the business might be diluted as more investors have a say in the running of
the business.
 They have no financial obligations when financing comes from personal savings.
 Family and Friends – when personal savings fail they resort to ask family and friends for
assistance. The evaluation of funding from family and friends is as follows.
 This type of funding is not as rigid as loans from financial institutions that ask for high
interest rates and have long repayment periods
 It is best if this agreement is done with right aide.
 Dealing should be kept strictly professional
 This is one of the biggest sources of capital but the amounts are usually small
o External Sources of financing
  Debt financing – this is financing that must be repaid. It is in the form of a loan which carries are
fixed rate of interest.
 The entrepreneur retains control of their business despite borrowing funds
 Small businesses are usually required to pay a higher rate of interest since they are seen
as being riskier.
 Most financial institutions require collateral as security for the loans.
 The business is required to pay interest whether it is doing well or not
 Leveraging (Gearing) – supply of funds through debt capital to finance assets as well as daily
business operations.
 Higher leverage means paying higher interest.
 Debt can be deadly for a business having too much debt scares lenders and the business
may not survive if sales begin to fall.
 Leveraging can lead to larger profits. However, if it is not managed properly it can lead
to an inability to pay the interest payments

Implementing and Managing the Venture

Implementation of the concept.

The implementation stage involves the following:

 The development of policies, goals and objectives – Van Aardt (2012) defines policies as specific
guidelines, methods procedures rules forms and practices that are established to support and
encourage work towards the stated goals. Policies must be developed to cover areas of concern
such as smoking, sexual harassment, use of cell phones, Insider information recruitment and
training.
o Goals and Objectives must be created before strategies can be formulated. They give the
business a sense of direction.

Execution of formulated strategies

Production operations- An entrepreneur must place heavy focus on the production process, access and
use of raw materials, division of labour and other procedures that maximise the efficiency in which capital, human
resources and physical resources are used. These procedures must also include control procedures in the event of
anything going wrong. These are known as production and operational management functions. The other two key
functional area include:
Marketing functions- this employs strategy that are geared towards getting the product to the consumer in
the most efficient manner. The strategies should be centred around the four P’s of marketing (Price, Place, Promotion,
Product). It is imperative that management devises strategies that will satisfy customers in these areas 1. Marketing 3.
 Finance and Accounting- this function will help the business to be financially stable and highly profitable
by implementing systems that enables efficiency in the use of capital, management of cash flow making wise
investments, evaluating financial positions etc. All revenue coming into the business and all of those will have to be
monitored to ensure that owners and investors have full confidence in the business

Define the following terms:

Debt capital - this is capital that must be repaid. Usually loans that have a fixed interest
Angle funding - Wealthy individuals looking to invest in other businesses for equity
Venture capital - capital that is put together by pools of businesses that is used to fund other profitable businesses

List any 4 factors and entrepreneur must factor when selecting a good supplier
-Reliability
-Affordability
-Quality
-Response to change

Outline 5 type of expertise needed in any business venture

- Financial Management
- Marketing Sales and Customer Service
- Leadership
- Problem solving
- Communication and Negotiation.

Managing debentures - After implementing the strategies the business must be carefully managed to ensure. Some key
areas are as follows.

Monitoring Performance. The objective of the business is to implement

External expansion
Horizontal integration
this occurs when there is a merger or accession of another firm that is in the same type of business or different type of
business but same stage of production

Advantages of horizontal integration

1. It increases the size of the business which increases the benefits from economies of scale
2. Resources can be shared, leading to savings in cost
3. A wider range of products may be offered
4. A larger quantity of goods and services
5. A larger quantity of products can be offered
6. Market share will increases, which leads to an overall increase in the power of the firm

Vertical Integration
This occurs when there is a merger or accusation of another firm that is in the same industry, but at a different
stage of production
There are two types of vertical integration
1. Backward vertical integration- the firm takes over its supplier
 2. Forward vertical integration- firm takes over its distributor

Advantages of Vertical Integration

1. Where backward vertical integration is concerned the firm take over its supply chain and gains
competitive edge
2. Firms gain control over its distributor/ retailer which produces a guaranteed market for its products

Managing growth effectively, will demand that the entrepreneur understands the business environment in which the
business operates. Business environment consists of all factors that may influence business operations and may be
classified as internal or external

External environment
1. Political factors- these include government activity and political conditions that may affect the business. These
include, laws and regulations, subsidies, grants, industrial relations etc.
2. Macro-economic factors- these relate to the condition of the economy on a whole and includes interest rates,
custom duties, exchange rates, stability of prices, recession, economic booms, unemployment rates etc.
3. Micro-economic factors- these are factors that affect the business such as competition, taste and preference of
consumers, relationships with suppliers, market size and demand and supply

The Scarborough (2011) defines creativity as the ability to use the imagination to develop new ideas and to discover new
ways of looking at problems and opportunities. It utilises a person’s imagination to construct somethings entirely new of
something that will add value to a product that already exists.

Kuratko (2014) explains that creativity is the generation of ideas that results in improved efficiency or effectiveness of a
system
The Creativity Process
Preparation- this stage is based on the thinking that ideas do not arise from an intellectual vacuum preparation involves
exposing the mind to new things which builds the skills of listening, attention, reasoning and planning. It is important to
ensure that all creative distractions are eliminated at this stage, these include normal introductions such as phone calls
emails and even visitors.

Investigation- this stage requires that the entrepreneur develop a concrete understanding of the problem or the
decision to be made

Transformation- the entrepreneur must observe differences and connections amount each aspect of data collected

Incubation- the entrepreneur steps back and allows his mind to rest. There is no conscious thinking regarding the
problem while the problem is in the entrepreneur’s subconscious, the mind is allowed to wonder and laterally access
cognitive resources

Illumination- this in the exciting stage where the eurek moment occurs a great idea comes to the conscious mind these
ideas usually come at the least expected moment. However all the details may not be included when the ideas reaches
the mind

Evaluation or Varication- the entrepreneur gives much thought to the idea and the persons who will be influenced by it.
The entrepreneur whether or not the idea is realistic and makes a decision to pursue the idea or to leave it alone.
Consultation and advise are needed in this stage
Implementation- the entrepreneur engages in the hard task of testing and working on the idea, thoughts are transferred
a final product

The Role of Creativity

1.creativity partners with innovation to get the products or the business on the market with a competitive edge
2. creativity plays a role in improving the standard of living for residents of Caribbean countries
3. creativity allows countries to make their mark on the global market through the presentation of new ideas
4. creativity allows entrepreneurs to take advantage of opportunities
5. creativity fosters the mind set needed by developing countries to accelerate development even further
6. creativity needs the technological advances that will support innovation

Importance of creativity
Creativity has lead to more diverse career Which are performed by persons capable of thinking outside the box. Some
industries are highly competitive and the firms can only survive if they are able to create new ideas which gives them a
competitive edge.

1. Creativity leads to more creativity - as workers are motivated to be creative. The business becomes more
entrepreneurial. In he solutions that are provided when problems arise in the workplace.

2. There can be no innovation without creativity-

3. When creatoivity is encouraged from employes it causes them to feel free to express themselves and to realize
theif full potential. This results in a highly motivated staff and an increase in productivity for the business.
(strabough 2011) defines innovation as the mobility to apply creative solutions to problems and opportujities to
enrich peoples lives.

Types of innovation

1. Product – this involves the introduction of a new product or service to the a market or improve delivery
methods.
2. Position – this involves the repositioning of a good or service so that it is seen in a different light by consumers.
This is necessary for when sales for a particular product are falling.
3. Paradigm – this involves a change in the mental. Example 70 years ago a laptop was seen as a device only the
rich could afford. Laptops are being produced by multiple entities and innovations have lead to lower costs4