PART I |

YOU AS AN ENTREPRENEUR
1.Do you have what it takes to be an entrepreneur?
Are you excited thinking about owning and running a business yourself? While it sounds very tempting,
being an entrepreneur also means taking on a lot of responsibilities and facing a lot of challenges!

 First of all, you need to find out if you are capable of running your own business. Favourable
circumstances, in combination with certain personal characteristics and skills are necessary
elements for your development as a successful entrepreneur. You will also need specific
knowledge and experience in the field to be ultimately successful in the business you choose.
Below are two assessments that you should make before going into business. The first one will
measure whether
you have the right abilities to be an entrepreneur. The second assessment will help you to
identify which type
Maria has grown up in a farmer’s family. Her parents grow seasonal vegetables to sell to the
local retailers. Maria has graduated from the Agricultural College. She knows various planting
techniques and is enthusiastic about promoting the planting, sales and consumption of organic
foods in her community. Maria decides to grow organic vegetables on her parents’ farm and to
sell the products through their retail network and field of business may be suitable for you.
 2.Which type and field of business is more suitable for you?
 If you choose a business based on your work experience, technical skills, knowledge of business
practices, hobbies, social ties and family background, etc., there is a greater chance that you will
succeed.Consider the following examples:

Hasan has been working for a courier company for many years. He learned how to manage the courier
business and how to develop the required networks. He is considering opening up his own courier
service to operate in his country and the East African region.
Maria has grown up in a farmer’s family. Her parents grow seasonal vegetables to sell to the local
retailers. Maria has graduated from the Agricultural College. She knows various planting techniques and
is enthusiastic about promoting the planting, sales and consumption of organic foods in her community.
Maria decides to grow organic vegetables on her parents’ farm and to sell the products through their
retail network.

Kim loves fashion. While she was a student in the capital city, Kim went shopping and discovered a
source of inexpensive imported clothes and accessories. She has now returned to her hometown. She
decides to buy fashion items from that source and resell to fashion shops in her area.

Githuku worked for a construction materials company for several years. He is very familiar with it all the
brands and knows the quality of various construction materials. When repairing his house last year, he
realized that there was no shop in the area selling the supplies he needed. He decides to open a shop
near his home, selling all types of basic construction materials, such as cement, bricks, tiles, sand, paint,
etc. He enjoys meeting people and advising them about the different types of construction materials.
Below is a summary of how the people in the examples above have chosen their field and type of
business:

In the following section, we will further explain what fields of business and types of business exist before
suggesting those that will be most suitable for you.

2.1 Field of business

A field of business refers to an industrial category, such as farming, fishing, food processing, garments,
construction, furniture, beauty salon, stationery, etc. Your talent, family background, experience,
hobbies or interests often inspire you to develop a certain field of business. Your decision to pursue a
particular field of business should also match your knowledge, skills and situation.
2.2 Type of business
A type of business identifies how you take part in the business field that you choose. Your personal
characteristics and your available networks often guide you into a suitable type of business.
There are four main types of businesses:

• Manufacturing

Manufacturers are businesses that use raw materials, such as leather, waste material, wood, cloth or
metal and make new or different products out of those materials. Some examples of manufacturing
businesses are shoemakers, dressmakers, furniture makers, paper producers and farm equipment
manufacturers. If you know how to produce a good and to make something that is in demand and
valuable to customers, you may want to go into manufacturing.

• Service Provision

Service providers are people whose businesses sell a particular service, such as transportation, tours,
hairdressing, banking, deliveries, construction, repairs, cleaning, painting, nursing, etc. If you enjoy
working with people and satisfying their specific needs, providing services may be your forte.

• Wholesaling

Wholesalers are businesses that buy large quantities of certain goods from manufacturers and resell
those goods to retail outlets, who then resell them to individual consumers. If you are familiar with
companies that make and sell their goods in bulk and you are good at establishing relationships with
retailers, you may want to be a wholesaler.

• Retailing

Retailers purchase ready-made goods from wholesalers or suppliers for resale at a profit. Some
examples of retail businesses are grocery stores, appliance stores, clothing stores, stationery shops,
computer and mobile phone shops, etc. If you like meeting different people and you have access to a
good location to open a shop, retailing may be a good option for you.

3.How to strengthen your entrepreneurial abilities and skills?

What if you do not have all the desired characteristics and skills to be an entrepreneur or if your
situation is not right to be an entrepreneur at this time? Look at the assessment areas above and
identify the areas that need improvement and growth, which are critical for you to start your business
and succeed in it. There are many ways to improve your entrepreneurial abilities. You can:
• Learn from people who run their own business, especially those in your chosen business field and type

• Attend training courses

• Find work as an assistant or apprentice in a successful business in the field and type that you are
interested in
• Read articles about businesses in your field and type in newspapers and trade journals, either on the
internet or at libraries to help you think about the problems these businesses are facing and their
proposed solutions

• Join a small business association in your area and participate in forums

• Set aside small amounts of money on a daily or weekly basis to help finance your new business

• Develop the skills and attitudes described below by applying them in your daily activities:
– Increase your motivation and commitment by making a plan for your future

– When things go wrong, analyse what happened and improve your ability to learn from mistakes

– Accept the problems, assess the solutions and take risks

– Become more open to new ideas and other people’s views

You might want to think about finding a partner who complements your abilities, instead of going into
business entirely on your own. A partner might also be able to bring financial resources, collateral or
relationships with financial service providers that could be helpful if your business ever needed a loan.

There are a number of successful business people who did not have much experience or practice in their
particular field or type of business before starting their companies. What is important is to be aware of
the areas that need improvement and develop a plan of action to deal with these before they negatively
affect your business. Complete the Action Plan on the next page to help you assess how you intend to
improve your knowledge, skills and business situation.