Warraaqsapppp

Intarprunership
Accelerating
Oromiyaa
Entrepreneurship
Revolutionary
Everywhere in
Oromiya!

Oromiyaa
Dokumantii Mariif Qophaaye
Sadaasa 27/2013
ADAMA
#1
 Qabiyyee

• Introduction
• Meaning and Concept of entrepreneurship
• Importance of Entrepreneurship
• Type of Entrepreneurship
• Driving for being Entrepreneurs
• Challenges of Entrepreneurship
• What will be the way out and how to implement
• Expected outcome on segment and time

#2
 The World is Changing

“In the 21st century, we will increasingly rely on

the lean and agile entrepreneurship of the small,
growth-oriented business– rather than the
resources, scale, and market size of the large
corporations – to fuel our economic growth
through the creation of jobs and innovative
goods and services.”

The E Generation

#3
 Introduction
• Most lands, labors, minerals and other natural gifts can not be a resource as they
Naturally exist. but needs to be processed, or passed through processes to be
considered as Resource, or needs Value Addition to give better wealth,
• The major sources of wealth development are land, Capital, manpower and
entrepreneurship.
• Note here the major source of wealth is created through continuous additional work.
• Hence, major source is not land or farmer who produced grain but one who processed
& supplied for consumption.
• Resource needs Processing, Labors hands needs Skill, mind needs Think Out of box by
Entrepreneurship
• Because Processing & supply of service for consumption requires technology, skill &
process that add Value in it.
• To Reverse this problems, we need to encourage them by Entrepreneur training.

#4
 1. THE theories OF ENTREPRENEURSHIP:--

1.1.ECONOMIC THEORY:-
farmer is an entrepreneur who promise to pay landlord for his land without any assurance
of profits he can drive from his enterprise i.e. land. He said that there is always a risk
factor of fluctuation of prices in market for an entrepreneur.
. They said that entrepreneur doesn’t have to be a single person but can be an organization

1.2.SOCIOLOGICAL THEORY:-
Economists of this theory believes entrepreneurship is social movement that
cultural values deeply affect the entrepreneurship and economic development.
If strong family support is with entrepreneur than this will be fruitful but if
family does not care about businessman that can cause adverse affect.
 Economists believes that special attention given to society can improve the
relations between the entreprise and its surroundings.
 1.3.PSYCHOLOGICAL THEORY:-
Entrepreneurship is most likely to emerge when a society has
sufficient psychological characteristics.
Joseph Schumpeter asserts that matter is beheviour not the actor.
Hence, entrepreneur is motivated & driven by 3 things:-
(a) ‘The dream & will for private power & independence.
(b) ‘The will to conquer’ that means the will to succeed.
(c) ‘The joy of creating’ that means satisfaction of getting things done.
1.4.ANTHROPOLOGICAL THEORY:-
FREDRIK BARTEH theory. Entrepreneurship has 2connecting
spheres in society b/n which there exits a d/c in values. :-
 Something which is cheap & Something which is expensive.
Entrepreneurship & Un-Employment
• Two strand found in literature; that unemployment stimulates
entrepreneurial activity “refugee effect”. On the Other Hand Higher level
of entrepreneurship reduce unemployment. “Schumpeter effect”.
• >Entrepreneurship activity is considered as the way out of unemployment
problem, because it justifies the need to increase entrepreneurial activities.

• As analysis Jones (2012) &Oladunjoye (2011) explained; Country with larger

entrepreneurship growth has lower unemployment rate than those have
lower. Eg Malaysia & Singapore has 3% unemployment.
• Nigeria founded “high rate of unemployment due to low level of
entrepreneurial development in economy.”
• Entrepreneurs succeed by thinking and doing new things or old things in new
ways, that means Creativity and innovation.
1.5 The Evolution of Entrepreneurship
• Entrepreneur is derived from the French entreprendre, meaning “to
undertake.”
 The entrepreneur is one who undertakes to organize, manage, and
assume the risks of a business.
• Entrepreneurial firms make 2 contributions to an economy:
1. They are an integral part of the renewal process that pervades and
defines market economies.
2. They are the essential mechanism by which millions enter the economic
and social mainstream of society
 Hisrich & Peters (1992) state that entrepreneurship is a .continuous process of
creating Something different that has value to the users.
 Why Entrepreneurial mind-Set
• Entrepreneurial mind set is needed since most of new
MSE die at early age.
• in South Africa firm’s failures in 5 year is b/n 50% and
95% (Willemse, 2010) while about 75% of new (SMEs)
have no chance to become established firms.
• GEM (2008) reports that only 2.3% of South African
owned SMEs remain in existence for over 3.5 years.
• An entrepreneurial mind set perform better in terms of
creativity and risk taking propensity are vital for
business performance & sustainability in Kigali Rwanda.
• While there are no available records in other countries, it
is sure that the above situation is not specific for South
Africa.
 Why we need Entrepreneurship?
•The Evidence on Entrepreneurship
• As analysis Jones (2012)explained; Country with larger e/ship
growth has lower unemployment rate than those have lower.
• Eg Malaysia & Singapore has 3% unemployment.
• Nigeria founded “high rate of unemployment due to low level
of entrepreneurial development in economy.”
• Entrepreneurial mind set is needed since most of companies
which are started die at early Ingrid & Yoshie (2006)
entrepreneurship education should begin in early childhood
since ,values, behaviours, attitudes& skills acquired at this
period might have a lasting effect over rest of their lives.
• Mind set variable was positive and significant suggesting that
having a grow mind set increases the firm’s sustainability.
The Entrepreneurial Mind-Set

13–11
 2. Importance of Entrepreneurship in Economy
why?
• Many business people, political leaders & economists believe that fostering a
robust entrepreneurial culture will maximize individual and collective
economic and social success on a local, and national scale.
• Small high growth companies account for 70% of economic growth over last
decade
• Over 1/3 of difference in national economic growth may be due to difference
in entrepreneurial activity & it accounts for at least 2/3 of all technological
innovation
• Entrepreneurship has a unique position in the “New Economy”

#12
 2.2 How to Build Entrepreneurship Culture
Culture can be a source of sustainable competitive advantage if that culture is
valuable, rare, and costly to imitate.
 Countries with valuable, rare, or imperfectly imitable entrepreneurial culture
should guard and nurture this culture.
 If We can able to modify our entrepreneurial culture, it is likely that others can as
well. .. If such effort is imitable, at best, it would be only temporary success.
• The ‘3-element approach’of Entrepreneurial
ecosystem help not to loose track & cluster information
simply in a useful way.
1.A business environment & investment climate,
2.Actors that are interacting with one another, and
3.Entrepreneurial culture & attitude toward entrepreneurial
activity.
1–13
 Yes… Entrepreneurship! But Where To Begin?

Given the challenges and uncertainties within conflict affected countries,

Entrepreneurship development should begin by creating:
a) An enabling environment via appropriate macro, meso & micro initiative
b) An enterprising culture via appropriate enterprise education pedagogies
Skills Needed to Build Entrepreneurship;
1.ENTREPRENEURIAL SKILLS. Provides unique expertise that use during
entire process of creating and managing a business.
2.READY SKILLS; business knowledge and skills that are prerequisites for
entrepreneur in competition and a context for experiences of Business man.
3.BUSINESS FUNCTIONS; performed in managing the business by Provide
day-to-day skills to see & create entrepreneurial opportunities.
An Integrative Model of Entrepreneurial Inputs & Outcomes
 3. Drivers for an entrepreneurial Revolution
• We are living in revolutionary times; times with an impact as significant & far-
reaching as the previous Industrial Revolution was to the Agricultural Age.
• Entrepreneur Revolution means taking the initiative to do something that you
love, something that you’re good at, & something that will make you money.
• In gaining an entrepreneurial mindset we will recognize how to change the
way We think, the way We network, & a way We make a living.

Opportunity-based entrepreneurs start a business in pursuit of growth,

profit, innovation, & personal aspirations by creating jobs & increasing
productivity in economy.
Necessity-based entrepreneurs, start a business because of “push motives,”
a way to compensate a lack of other sources of employment. (linked to
unemployment, economic recession, and poverty.
 Benefits Driving For Entrepreneurship
1. Autonomy- running your own business allows you to be in charge of your own destiny. It also
helps you to avoid getting stuck in the “daily grind” or the “rat race”. Of-Mullifna!
2. Opportunity- Being an entrepreneur opens up a whole new world of opportunity for you.
Carraa Keenya Ofii Fayyadamne Kanbiroofis Uumna
3. Impact- Many people who work for other companies truly want to work hard and help that
company to succeed, but few are actually able to have such an impact. Cimnee Hojjachuun
bu’aan dhiibbaa Siyaasa Diinagdee Uumna
4. Freedom- If you are your own boss you can do things your way! Bilisummaa dhugaa!
5. Responsibility- when you run your own business you have the ability to be responsible to
society and operate your business the way that you feel it should be run. Biyyaafis
Qabeenyaafis Ilaalcha Abboomu fi Ittigaafatamummaa Uuma.
6. Time & Family- becoming an entrepreneur could give you the freedom of time to spend more
of it with your family. Misooma Hawaasumma !
7. Creating a Legacy & Accomplishment - if the idea of forging a lasting legacy is important to
you then few other careers give you the opportunity to do so like operating your own business.
Lammii Dhufuuf Fakkeenya taane Seenaa Hojjanna
 Entrepreneurship Development: Driving Forces
General Policy Framework Facilitating Institutions:
• Policy for SSE development Finance
• Policy co-ordination • Investment capital
• Macroeconomic environment • Working capital
Enabling Environment

• Political situation • formal / informal financing

Regulatory Framework Facilitating Institutions:

Catalysts
• Licensing/registration Business Support Services
• Taxes • Information
• Commercial laws • Training & advice
• Technology
• Market linkages
Infrastructure
• Industrial sites/Incubators
• Power Technical & Mgmt Skills
• Telecommunication
• Roads/rail
Business Culture
4. Classifications of Entrepreneur
• There are Business Enterprueners, Social Enterpruenrs but All
entrepreneurs are married to a vision" They are society's change
agents to satisfy some unmet need.
A.Business entrepreneur is a person who enters a venture through a
startup model of business and tries to establish taking risk factors of
production to address a cause and making a profit.
B. Social entrepreneurship & entrepreneurs. business entrepreneurs
go after a problem, social entrepreneurs have a vision of something to
solve in the social sector & it can occur within the public, private or
non-profit sectors. Tola Ooltummaanis
“civic entrepreneurs” are entrepreneurs whose business model
includes a social mission as individuals who initiate social innovation
and change. Eg. Using Associations, Idirs & Ikub…
 4.1 Outcomes of Social Entrepreneurial
• Kauffman Center has introduced the idea of social entrepreneurs, or people who
use their entrepreneurial spirit to start and Create organizations that focus on
community development like better health care, childcare and other social
services, stronger civic leadership, better students, more productive workers, and
enterprise creators."
• A culture of entrepreneurship has great potential to liftUp declined spirits of rural
communities due to economic decline, (Eg sense of security, optimism &
community pride may wane).
• Job creation brings wages for community & does not necessarily keep
wealth within communities But Rural entrepreneurship utilize local talent
& resources, by creating Wealth to each family members that stays in the
community through reinvestment.
• It can create a chance of Non-farm based Extra Economy in community
4.2 Behavioral Roles of an Entrepreneur
Entrepreneurs 3 dominant behavioral roles due to circumstances in their
lives which made them think the way they do.

Social Roles of •Creating opportunities for entrepreneurship.

•Creating job or employment opportunities in the society.
Entrepreneur •Engaging in social welfare services of redistributing income and wealth.
•Transforming a standard working procedure into a more modern approach.

Economic Roles of •Bearing the risk of failing in business.

•Mobilizing the revenue of the organization properly.
Entrepreneur •Utilizing human resources in a cost-efficient manner.
•Providing channels of further economic growth in the organization.

•Changing traditional technology to modern system.

•Adapting improved technology to business environment.
•Utilization of available technology in the production process.
•Developing efficiency and competence in the workforce through technology
 4.3 Types of Business Entrepreneur
Fabian Entrepreneurs are very careful in
Innovative Entrepreneurs is more their approaches and cautious in adopting
interested in introducing some new any changes. They are not prone to
ideas into the market, organization or in sudden decisions and try to shy away from
the nation. They are drawn towards any innovations or change that doesn’t fit
innovations & invest time and wealth in their narrative
doing R&D. • Drone Entrepreneurs do not like a
Imitating Entrepreneurs are often change & considered as ‘old school’.
disparagingly referred to as ‘copy cats’. They want to do business in their
They observe an existing successful system own orthodox methods of
and replicate it in a manner to improve an production. Such people attach pride
existing product by suggestions to enhance
the use of better technology.
& tradition to even outdated
methods of doing business.
An entrepreneur Who practices an artisan Developing creative And Cultural ideas.
– Creative Entrepreneurs – Cultural Entrepreneurs
– Arts-based Social Entrepreneurs – Commercial Arts Entrepreneurs
5. Challenges for Entreprueneral Development
• In developing countries, the primary barrier to economic growth is often not so much with a
scarcity of capital, labour or land, but it is the scarcity of both the dynamic entrepreneurs
that can bring these together and the markets and mechanisms that can facilitate them in
this task.
• Government of Nigeria recognized role entrepreneurship in jumpstarting the growth &
development of the economy decided on two things in 2009, one, that entrepreneurship
education should be made a general studies course for all undergraduates. The second was
that a center for entrepreneurial development be established in each of the tertiary
institutions.
• Vesper has listed 12 common obstacles in the path of entrepreneurship. Furthermore, he
also identified Social stigma attached to certain vocations, Monopoly Protectionism,
Inhibitions Relating to patents & Job “Lockins”,
• Although entrepreneurs ‘by necessity’ are generally respected for their work ethic,
entrepreneurs ‘by choice’ options are often discouraged.

1–23
5.1Common Idea Stoppers & Entrep Cones
 We can’t factors for entrepreneurship
 That’s the dumbest thing I’ve failure are :-
ever heard. Lack of viable concept
 Yeah, but if you did that…
Lack of market knowledge
 We already tried that years ago.
 We have done all right so far; Lack of technical skill
why do we need that? Lack of seed capital
 I don’t see anything wrong with Lack of business knowledge
the way we’re doing it now.
Lack of motivation
 That doesn’t sound too practical.
Over confidence
 We’ve never done anything like
that before No guarantee of earning
profits.
1–24
5.2 Impacts Of Culture on Enterpruenership
Development
• In both developing and developed countries, entrepreneurship is seen as a driving
force of economic growth, job creation, social adjustment and innovation.
• A number of studies comparing ethnic groups’ levels of entrepreneurship, e.g.
Koreans, Chinese, Indians & Blacks, in the USA.
• Asians, Indians and African communities have become highly visible as shop owners
and their retail and service enterprises have shown a steady increase.
• there is a correlation between problems experienced by ethnic entrepreneurs &
their marketing skills. Saboota Biroonis Otuu Of Madaallee..
• The research has also established that a positive relationship exists between ethnical
and cultural background and successful small business in South Africa.
• Namoonni Keenyas Waan Biyyatti Hin Hojjanne Biyya alaatti hojjatuu, Biyyaa Yoo
bahan caalatti waldeeggaru … Sababni.. Aadaa, Hawaasa
 … Impact

• Study on the factors that affect entrepreneurial culture, self-efficacy

as factors affect entrepreneurial culture and it confirmed a significant
direct relation self-efficacy have impact on entrepreneurial culture.
• a culture that supports entrepreneurship allows more
people to exercise entrepreneurial potential, and in turn,
increases business activity.
• In a study encompassing 53 countries, Hofstede identified 4 value-
oriented dimensions of culture that may be used to describe and explain
aspects of behavior in various cultural groups.
• These dimensions are: (1) power distance, (2) uncertainty
avoidance (3) individualism, and, (3) masculinity (Russell, 2004).
Israel Legacy: Survival
• Israel is locked in a battle for survival with its Arab neighbors.
• Lack of natural resources and vulnerable political reality. Economic self reliance through
mobilization, innovation, creativity and excellence (mainly in science and technology).
• “Never again” and “no choice” (no second chance) mentality
Legacy: Immigration
• “Melting pot”: metaphor for a heterogeneous society becoming more homogeneous,
the different elements "melting together" into a harmonious whole .
• Building “new man” and culture .
Self confidence “In social circle every one is either starting new business,
about to do it or talk about doing it. There is a social pressure to be an
entrepreneur, its stick. So I’m doing it, it is my call”.
• “In Europe you look for secure job. In US & Israel, your parent were
immigrants, the shoemaker push his son to move forward, doing well in
business or becomes a doctor”
 Enterprise Pedagogy
Kolb’s Experiential Learning Cycle
Stage 1
Having an
experience

Stage 4 Stage 2
Planning the Kanaaf Haaluma Gabaabaan Reviewing the
next steps Waan kufaniif Murtii Cimaa
dhiibbaa Qabu Kaayuun nijira experience

Stage 3
Concluding from
the experience
 As Of General Entrepreneur Index
• GEI is composed of 3A building blocks that contains
individual & institutional variable that corresponds to
micro&macro level aspects of e/ship.
• Each 3A blocks of e/ship influences the other 2. For
example, Aattitudes influence Ablaties & Aspirations,
while Aspirations & Abilities also influence
entrepreneurial Attitudes
• To ensure effective entrepreneurship education, there
should be a r/n s/p b/n the goals of the e/ship programs,
the audiences to which the program is delivered,
contents of the e/ship courses, method of delivery or
pedagogy, & the method of assessment.
 1. Entrepreneurial Attitudes
• Society attitude to recognize & Respect business
opportunities, to successfully launch businesses
• The benchmark individuals are those who can
 1) recognize valuable business opportunities,
 2) having necessary skills to exploit opportunities,
 3) attach high status to & respect entrepreneurs,
 4) handle startup risk, and
 5) know entrepreneurs personally (role models).
 2.Entrepreneurial Abilities
Quality differences in startups are quantified by motivation &
education level of entrepreneur, & by uniqueness of product
or service, as measured by competition level.
It is generally maintained that opportunity motivation is a
sign of better planning, a more strategy, & higher growth
expectations than “necessity” motivation in startups.

3. Entrepreneurial AspirationIt is the early-stage

entrepreneur’s effort to introduce new products/ services,
develop new production processes, penetrate foreign markets.
2018 GIE Ethiopia Status
 Factors affecting Enterp intention
According to 2012 GEM an individual’s entrepreneurial intention is influenced by 2
perception; 1. extent to which it is desirable to become an entrepreneur.
And feasibility, with the individual’s ability to adopt entrepreneurial behavior.
• As of the study; 53% of adults in Ethiopia are potential entrepreneurs. while
perceived opportunity (65%) & perceived capabilities rate is (69%).
• Fear of failure is a disincentive to start a new business. Out of 65% who perceive
business opportunities, 35% fear failure, & only 22% have entrepreneurial intention
which is lower than Sub-Saharan countries 53%.
• If the rate of entrepreneurial intention evaluated with regions; DireDawa (50%),
Addis Ababa (28.6%), Oromia (25.2%), Amhara (18.6%).
• Early-stage entrepreneurial activity rate (12.2%) is also far below the average for
factor-driven economies country (23.7%).
• Similarly, the established business activity rate (8.3%) is below the average for Sub-
Saharan Africa countries (12.8%).
 …. Factors Enterp
• The GEM survey also insights positive correlation between
opportunity-driven business & higher education attainment -
completing secondary & preparatory school (69.7%), TVET
(72.7%), and 1st degree (70.6%).
• Tigray, SNNP, Oromia and Amhara regions have TEA rates of
19.3%, 16.5%, 10.6%, and 7.1%, respectively. About 55% to
62% of the new businesses created in the four large regions
are opportunity-driven.
• Besides, adults living in urban have a higher probability of
being engaged in early-stage entrepreneurial activity (TEA)
than those living in rural areas.
• Hence We need region-specific entrepreneurial training to
change the attitude of the entire society.
Diversity in culture of entrepreneurship to be Achieved ?

1. Young entrepreneurs development program,

2. Women entrepreneurs development program at woreda Level
3. Citizens with Disablities, family business
4. farmers agricultural Rural entrepreneurs, those who engaged in
investment, who use Rular finance, and other selected farmers
5. Home-based business owners, cottage industry
Generally it is needed to create an Entrepreneurs-Eco system in
our Working culture.
 Xiinxala Haala entreprunershi keenya
• Oromiyaan Qabeenya otuu qabdu hiyyummaan bara dheeraaf jiraatti.
• Q/bulaan ji’a 4 qotee kan hafan 8 ni taa’a. Maatiin Isaas Hojii biro Hin hojjatani
Laftis…
• Qoteebulaan gariin Deeggarsa Misoomaaf kennamuuf fkn Xaa’oo, Sanyii
Filatamaa gurguree, Lafa kiraa Kennuun lafa fi Maatii isaas Hiyyoomsaa Jiraata.
• Intarpirayizoonnis Sheedii kiressuu, Maallaqa Liqaa Fandi fi Deegarsa
Gabayaatin argatani baraxessuun, Leenjii TIE hifatuun ofiis, Rakkoo Maraaf
Mootummaa Abaaraa jiraatu...Yeroo Heedu Interpirayizooni Ni bittinaau..
• Hojimaanni Leenjii keenyaa, Aadaan kessatti guddannee fi Daldalaan nama
badhaadhe ofduratti ilaallu heddu hinturre.
• Dubartiin, Dargaggoonni, Q/Miidhamtoonni gahee guddaa diinagdee keessatti
qabatanii fayyadamummaan rakkoo guddaa dha.
• Humni Misooma 4 (Nama, Qabenyaa Kapitaala fi /Inatrpruner/) diinagdeef
Gahee guddaa akka hintaphanne kan godhe keessa inni guddaan Aadaa Hojii
Qabnuu fi hanqinna Ogummaa qabnuu dha. Interprunership & Skill.
Hojumaata Leenjii Bu’aa buusu Qophessu
• Leenjii fi Deegarsa Kenninuu keessatti Qotee Bultoota, Horsiise Bultoota
Dubartoota daldala yaalan, Dargaggoota , qaama Miidhamtoota
hirmaachisuun akka fayydamoo ta’an gochuun dhaqabbamummaa diriirsuu.
• Leenji xumuramu dura hanga danda’ameen akka Hojii baruufi amala daldalaaf
isaan qarqaaru, Hojii mukaa, hojii Aadaa, Akkasumas Qorannaa fi projakti
sasalphaa rakkoo industrii madaaluu fi furuuf shaakaluu kessa dabarsuu
• Waldaaleen akka Gabayaa Baratan iddoo Maashinoonni fi meeshaaleen omishaa
Kollejii Hojii malee taa’anitti Galii Qindoominaatiin akka hojjatan haala mijessuu.
• Teeknolojii fi Beekkumsa ogummaa Aadaafi Duudhaa keenyas giddugaleessa
godhatee Qabeenya uumamaa qabnuu fi hojii misooma Agroprocessing irratti
faayidaa guddaa fiduu dand’an irratti xiyyeffannoo addaatiin hojjachuu.
 …ittifufe
• Qaamoleen Hawaasaa adda addaa fi faayidaa fi Maalummaa Leenjii
Entrepruenership guddina isaaniif kennu hubachiisun, duuka bu’aa leenjisuu,
• Leenjiin kuni qaama ilaalu hunda bira akka gahu sagantaa baasuun
Hoggantoota WBLTO fi Bulchoota waliin sagantaa baasuun koreen
qindoominnaa akka ijaarramu gochuu
• Leenjiftoota Saganta kanaan dhufanii Hin leenjine Hundaa sadarkaa kollejitti
Leenjisuun Hubannaa dabalataa kennuu.
• Kollejota Keessa dhufne Hundaatti G/Gala Intarpruunarshiipii banuun Focal
ta’anii Hojjachu.
• Diinii Politeknikaa Kilaastarootaa warri taatani Sagantaan Kuni akka lafa
qabatuuf abbummaan Karoorsuun Hojjatu.
• Dhimmi Kuni Dirqama Lammummaa, Dirqama Namoomaa, Dirqama
Mootummaa fi Inumaayyu Dirqama Hiyyeessa Nyaachisuu danda’Uu Rabbi
Nurra Kaayes waan ta’eef Eggatummaa Malee Ciminaan fi Abummaan
Hojjachuu Qabna.
Warraaqsa Intarprunarshipii Uumuun
Badhaadhinna Oromiyaa Ni
Mirkaneessina!

Galatoomaa!! Horaa Bulaa!!

Milkii Argadhaa!!