TALKING POINTS ON ENTREPRENEURSHIP

Alternative Career Option of the 21st

Century

By Sanusi A. S. Maikudi

Salutation & Appreciation ProtocolsThe Chairman of the occasion, the Guest of Honor, other invited Guests, it Is my pleasure to be with you all this special Evening.

It is my pleasure to address you on an important topic of entrepreneurship

In search of the Big Picture

The Challenges There are multiple challenges facing Nigerians in different facets of our national life. Massive poverty and large-scale unemployment are among the most critical, which amongst others provided a fertile grounds for conflict, underdevelopment and lost of economic competitiveness on the global scene.

These challenges posed by these and other emergent problems such as changes in public administration paradigm, which adopted the ‘less government’ with its attendant shrinking employment opportunities in the public sector without corresponding openings in the other sectors of the national economy.

Life is a journey ….…? but So what………?

THE FOUNDATION: - EARNING A LIVING

Earning a living is a fundamental issue across places, time and cultures. You may call it Occupation, Vocation or Profession the bottom line is earning a living.

Earning a Living in pre-colonial times Earning a Living in Colonial Era Earning a Living in Economic Reforms Era

Earning a Living in pre-colonial times

Earning a Living in Colonial Era

Earning a Living in Colonial Era There are main means of earning a living during the Colonial Era

1. Traditional Economic Activities

2. Colonial Service, Clerks, interpreters, labourers etc.

CAREERS IN POST INDEPENDENCE ERA

CAREER IN POST REFORM ERA The World Bank and IMF championed reforms promoted the concept of ‘ less government’ which resulting in shrinkage of public service space.

The net result :- a) Rationalization b) Retrenchment c) Rightsizing d) Retirements e) Unplanned resignation These all result in deterioration in the quality of life of those affected in

particular and the society in general.

CAREER OPTIONS AT DIFFERENT STAGES OF HUMAN LIFE

Career is Primarily is a personal choice but is sometimes forced upon a person by circumstances beyond his/her control

Major determinants of Career are Knowledge, Skills and Attitude

The principal options are to be :- a) Employee in public, private or CSO b) Self-employment i.e. Entrepreneur c) a combination of a & b above.

CONCEPTUAL CLARIFICATION Definitions

Entrepreneur:- the individual who perceives needs, conceive good or services to satisfy the needs, organizes, the factors of production, create and market products” Meredith et al (1982) defined the term as people who have the ability to see and evaluate business opportunities to gather the necessary resources to take advantage of them and to initiate appropriate action to ensure success”

Entrepreneurship:-Hisrich and Relers (2002) defined entrepreneurship as “the process of creating something new and assuming the risk and reward” While Stoner and Freeman ( ) defined it as “a discontinuous phenomenon, appearing to initiate changes in the production process and then disappearing until it re-appears to initiate another change”

Enterprise:-An enterprise is “a unit of economic organization or

activity especially a business organization” while according to the Encarta (2006) it is organized business activities aimed at growth and profit” it is usually regarded as an utility.

Significance of Entrepreneurship

The Significance of Entrepreneurship is many fold and broad, accordingly we can discuss it under the following subheadings:- a) Individual = Job, Wealth, Satisfaction, Passion, Philanthropyb) Community = Employment, self- reliance, goods & servicesc) National = sustainable development, inclusive-growth, competitiveness, shared -prosperity, economics independencee) International = Flow of Goods & Services, Mobility of labour , improved global peace, enhanced cooperation and solidarity.

Forms of Entrepreneurship Business Entrepreneurship in MSMEsEnterprise Creation Social EntrepreneurshipNGOs, CBOs, CSOs Intrapreneurship Entrepreneurship in large Government MDAs / companies or international organizations.

Entrepreneurship EducationSensitization, needs assessment, designed and delivery of training, training evaluation, coaching, mentoring etc.

Personal Entrepreneurial Competence

Opportunity Seeker Calculated Risk Taker Innovator, Creative and Synergy Success Oriented Networker (team worker) Life Long Learner Action Oriented Out of the box thinker and actor Resource Optimizer (Bootstrapping)

The Entrepreneurship Cycle

Personal Vision Entrepreneurial Vision Enterprise Vision Business Idea Generation SWOT analysis Business plan Resource mobilization Enterprise Launching Enterprise Monitoring and Evaluation Re-planning Business Harvest/Exit

DIGRESSION:- NAME A DOZEN BIZ YOU CAN CONCEIVE OUT OF THIS RESPURCE ……..

ACADIA© ENTREPRENEURSHIP DECISION MAKING CYCLE

RISK/ Challenges of Entrepreneurs

Exposure to Financial Risk Exposure to stress (health risk) Physical Risk Legal Risk Environmental Risk Emotional Risk

But please note that:- The existence of risk is not an excuse to

stop our desire for freedom through enterpreneurship

Classes of Entrepreneurs.

Super Achiever Expert Idea Generator (Innovator) Expert Manager/ Administrator Supper Sales Person Complex Entrepreneur

Stages in Entrepreneurial Development

1. Positive Attitudes2. Aspiration 3. Activity

Drivers of the Entrepreneurship

The drivers of Entrepreneurship can be classified into two namely :-

1) Push Factors Such factors as loss of a job, breadwinner, disaster etc.

2) Pull Factors The benefits of entrepreneurship, wealth creation, job provision, freedom, self-esteem

THE ENTERPRISE CREATION PROCESS

The basic steps in business creation include and act the opportunities provided by :-

New or Lingering Problems Unmet or poorly met needs Wasted Resources New Products/ Services New markets

Enterprise Selection Check List

The basic requirement of selecting an enterprise are reasonable existence of:-

Demand Passion Capacity Enabling Environment

Enterprise Management Process

After an enterprise has been created it has to be managed carefully and systematically. The management functions include

Planning Organizing Leading Directing Controlling

Enterprise Growth Process I

The next challenge after creating a venture is how to grow it. There are different types of growth strategies some of which are :-

Organic Growth Mergers and Acquisition Horizontal Growth Vertical Growth

Enterprise Growth ProcessII

Enterprise Renewal Process (Innovate of Perish)

Like any living thing it follows a life cycle of birth, growth, maturity, decline then death or renewal same as an enterprise.

Enterprise Harvest ProcessSometimes at maturity a firm is sold out or quoted at the capital market.

SUPPORT FOR ENTREPRENEURSHIP DEVELOPMENT

Sources of Support for Entrepreneurs usually include:-

Informal Sector Private Sector And Public Sectors Donor agencies

SUPPORT FOR ENTREPRENEURSHIP DEVELOPMENT II

Types of Support Capacity Building of Knowledge, Skills and/or attitude

Financial Support Raw Materials Machinery Work Space Information Markets. Legal and Regulatory

Supporting Institutions

Financial Institutions MDAs of EDPs Poverty Alleviation Institutions EDP based NGOs, FBOs and CBOs.

FUTHER READINGS

Further information on this subject matter can be obtained from:-

Human Books Mentors, Coaches, consultants

Traditional Books Audio Books Online Sources Business Magazines and News Papers.

QUESTIONS AND ANSWERS

1. Questions on the Lecture

2. General Questions

CONCLUSIONS

Endeavour to look ahead by thinking big but start small

Thank you, once again

THANK YOU ALL