GSE 202 TEXTBOOK (CONTEMPORARY ENTREPRENEURSHIP DEVELOPMENT) SUMMARIZE BY JAVA

CHAPTER 1

NATURE, PURPOSE AND SCOPE OF BUSINESS

INTRODUCTION

Business is an integral part of modern society.it is an organized and systematic activity for earning
profit.it is concerned with activities of people working towards a common economic goal. Modern
society cannot exist without business.This is because improves the standard of living of the people by
providing better quality and large variety of goods and services at the right time and at the right
place.Besides, business provides opportunities to work and earn a livelihood.Thus,it generates
employment in the country,which would is turn reduces poverty.When business environment is
conducive for business organization such business thrives well and this reduces poverty (Aremu &
Adeyemi,2011).
Business improves national image of producing country by producing and exporting quality goods and
services to foreign countries.By participating in international trade fairs and exhibitions,it also
demonstrates the progress and achievements of its own country to the outside world. Hence,a number
of innovative products and services are developed through industrial research.

NATURE OF BUSINESS

Business refers to an occupation in which goods and services are produced and sold in return of money.it
is carried out on a regular basis with the prime objective of making profit. Mining, Manufacturing,
Trading, Transporting, Storing, Banking and Insurance are examples of business activities. For our
purposes in this paper,the general definition of Timms (2011) was adopted. He defined business to
mean,a commercial enterprise or establishment that trades in goods or services.However, the
complication of using a general definition emerges again.For instance,the objective of 'trading' does not
have to be for profit. Therefore the argument can be made that non-profit making organizations can also
be regarded as business,at least a certain type of business. This would include public sector
organizations, since there is increasing demand for these organizations to perform and be managed like
profit - making business (Mullins,2010). Business can also be regarded as any economic activity which
must focus on continuous and regular production and distribution of goods and services for the purpose
of meeting the needs of people in the society (Aremu,2012). The implication of this is that business must
involve continuous production and distribution of goods and services with the intention of making
profits. Business is the activity of an individual or group of individuals in producing and distributing
goods and services to customers (Brown & Clon 1997). Stephenson (2008) defined business as The
regular production or purchase and sale of goods undertaken with an objective of earning profits for the
benefit of those on whose behalf the activity conducted. LEWIS (2011) sees business as Human activity
directed towards producing or acquiring wealth through buying and selling of goods. He considered it as
an economic system in which goods and services are exchanged for one another or money,on the basis
of their perceived worth. It therefore means that every business requires some form of investment and a
sufficient number of customers to whom its output can be sold at profit on a regular basis.

FORMS OF BUSINESS ORGANIZATION

SOLE PROPRIETORSHIP
The sole proprietorship is the simplest business form under which individual can operate a business. The
sole proprietorship is not a legal entity. It is a situation where one person owns the business and is
personally responsible for its debts.it is considered as the simplest and most common form of business
chosen by people when starting a business. A sole proprietor is someone who owns an unincorporated
business by himself or herself. According to Aremu (2012) he posited that the sheer quests for status,
independent,and lack of honestly and trust are accountable for the negative attitude toward combining
with another person(s) to form a business organization. This is the reason why Nigeria businessmen
prefer to do their business alone. They often realized that it is difficult in Nigeria to find honest business
partner, with whom to they can work together to form a business. One important thing to note in sole
proprietorship is that the owner subscribes solely to all of the equity capital of the business. The owner
usually raised money for the business from his/her personal savings and also approach relations and
friends to get soft loans. According to SINHA (2015) it is a form of business where one man sows, reaps
and harvests the output of his efforts.

PARTNERSHIP
A partnership is an arrangement where parties,known as partners,agree to cooperate to advance their
mutual interests.it is a legal relationship between two or more persons where each person invests
his/her money in order to carry on a lawful business with a view of earning profit. The profit will be
shared based on the agreement between the partners. The partnership reports the income it earns to
the internal revenue service;however,the partnership itself does not pay taxes. One important thing to
recognize in partnership business is that each partner report their own shares of the partnership's
income on their personal tax returns and pay taxes owned (LONGENECKER,PETTY,PALICH & MOORE
2010). A partnership agreement may be either in written form or unwritten form.It is advisable that any
agreements between the partners be reduced to writing as this will tend to lead to fewer possibilities of
misunderstandings and disagreements between partners. The partnership agreement establishes a legal
relationship between or among the partners, the partnership itself is not a legal entity.

LIMITED LIABILITY COMPANY

Aremu (2012) posited that it is increasingly becoming mandatory for the sole trader and other
businessman to arrange to form either partnership or limited liability companies because of high rate of
business failures. A limited liability company (or company) may be defined as an artificial creature,
invisible, intangible and existing only in contemplation of law. As a legal (artificial) person,it is separate
from the owners. It can enter into a contract, sue and be sued in its name, can affiliate with another
company and open subsidiaries.Examples are United Bank for Africa PLX,Cadbury United Foam Product
(Nig.) Ltd, Lever Brother UAC,PZ, and First Bank of Nigeria Plc.
A company is legally formed by meeting the conditions stipulated in the companies and Allied Matters
Act (Decree),1990. The promoter must apply for registration at the Corporate Affairs Commission
together with both a Memorandum and Articles of Association.

OBJECTIVE OF BUSINESS

There are several objectives of business however this paper focused on the following important
objectives of any business:
1. Profit objective:The primary objective of business is to make profit by identifying and effectively
serving the needs of customers.Profit is the primary motive for establishing a business enterprise. Profit
represents a reward for investing in a business (Aremu,2012). This implies that profit also serves as a
measure of performance.

2. Growth Objective: The growth of a business enterprise is another major objective of business.The
growth of business is an expansion of the business enterprise.This may be in form of increased sales
turnover, market share, number of people employed, capital employed, etc. Growth objective of
business also benefit the employees because it gives security of jobs to employees BOONE & KURTZ
(2001).

3. Market share objective: Business often want to build a larger market share. The concern of some
business owners is on how to increase the market share of their business. They usually achieve this
objective by wining customers from competitors. The essence of increasing market share is to dominate
the market and possibly increase their product prices.

4. Survival: Survival is another important of all forms of business, Survival is main objective of any
business in today's competitive world and volatile environment. Every business organization tries to be
different and accelerative from their competitors to achieve their goals and become market leaders. This
usually commence from the process of launching new products and services that are relevant to the
needs of the customers.

5. Employee Satisfaction: Business organizations must ensure that they bring satisfaction to their
employees past studies depict bidirectional relationship between employee satisfaction and job
performance while recent studies give more insight of unidirectional relationship that employee
satisfaction leads to job performance but weak relationship exists when job satisfaction was analyzed as
a result of job performance (Fried,Shirom,Gilboa,& Cooper,2008).

6. Image and reputation: The important objective of business that must also worthy of mentioning is
improving image and develop a good reputation. This is achieved by recognize the needs of other
customers in order not lose the customers to other businesses in the competitive environment.

7. Social Objectives: Social Objectives are those objective of business,which are desired to be achieved
for the benefit of the society. Since business operates in a society by utilizing its scarce resources,the
society expects something in return for its welfare.

8. National objectives: Businesses are operating in a country and therefore,every business must have the
objective of fulfilling national goals and aspirations.

9. Shareholder Satisfaction: As business organization increasingly believe in the truism that shareholder
Satisfaction is inexorably linked to long term shareholder value.

PURPOSE AND FUNCTIONS OF BUSINESS

Purpose refers to what the business intends to do.Purpose classifies business behavior individually and
collectively, and is based upon what the business values, instrumentally and terminally. Understanding
the value behind the purpose is fundamental if one wants to set any strategic direction (Malloy,2003).
Without this information,a business is adrift and will move in the direction of each and every wave. If a
businessman wants to take control of his own business and explicitly set a direction,he must firmly
establish the purposes of such business. The purpose of business activity is to identify and satisfy the
needs and wants of the people with the overall aim of earning profit. More also,in defining an
appropriate business purpose,the 5 "Ws" (Why,Who,What,When,and Where) can help businessman to
determine the information he/she to consider in the in the business purpose.
According to Drucker (2014) "if we want to know what a business is,we have to start with its purpose.
And the purpose must lie outside the business itself. In fact,it must lie in society, since a business
enterprise is an organ of society. There is only one valid definition of business purpose: to create a
customer". This implies that the customer is a foundation of a business and keeps it in existence. The
customer alone gives employment and it is to supply the customer that society entrusts wealth
producing resources to the business. It is the purpose of business to create a customer. Business has
some basic functions which must be performed in order for business to achieve its purpose,a business
enterprise performs many functions which can be classified under the following headings:
Production,Marketing,Finance and Personnel.
The salient functions of a business are listed and discussed below as pointed by Malloy (2003).

(i). Production Function:It is concerned with the transformation of inputs like manpower, materials,
Machinery, Capital, Information and energy by business into specific outputs as demanded by the market
and society.

(ii). Marketing Function: This focused on the distribution of goods and services produced by the business
production department. It can perform this function efficiently only if it is able to satisfy the needs of the
customers.

(iii). Finance Function: This function is concerned with arrangement of sufficient capital for the smooth
running of business.

(iv). Personnel Function: This is another important function which business must perform in order to
achieve business purpose. It is concerned with finding suitable employees, giving them training, fixing
their remuneration and motivating them.

THEORIES ON PURPOSE OF BUSINESS

There are two common theories on the purpose of business organization.Each of the theories provides a
framework for evaluating compensation policies, corporate governance procedures, and the economic
and social performance of business. These theories are shareholder theory and stakeholder theory.

SHAREHOLDER THEORY
Shareholder theory emanates from an economic perspective, focusing on the business purpose of
creating wealth for its owners while minimizing both the importance of the firm's interaction with its
other constituencies and its role in society. The origins of the ideas shaping shareholder theory are more
than 200 years old, with roots in Adam Smith's (1776) The Wealth of Nations. In general, shareholder
theory encompasses the idea that the main purpose of business lies in generating profits and increasing
shareholder wealth. Modern proponents of shareholder theory espouse three tenets from Smith,
(a). The importance of free markets
(b). The invisible hand of self regulation and
(c). The importance of enlightened self interest.

Shareholder theorists call for limited government and regulatory intervention in business, believing
markets are best regulated through the mechanism of the invisible hand that is,if all firms work in their
own self interest by attempting to maximize profits, society at large will benefit.

STAKEHOLDER THEORY
Stakeholder theory widen the firm's perspective, recognizing the importance of wealth creation as well
as the business relationships with its multiple constituent groups shareholders creditors, employees,
customers, suppliers, regulators and local communities and impact on society at large.The idea that a
business should have an expanded role and responsibilities to other stakeholders besides its owners is
much newer than shareholder theory. Although tenets of shareholder and stakeholder theories differ,
both are concerned with the purpose of the firm and strategies to improve its competitive position.
Thus, the two theories are not diametrically opposed,as it sometimes appears. Each is concerned with
the firm's best interests one may say self interest but each differs on the most effective approach to
realize those interests.

CHARACTERISTICS OR FEATURES OF BUSINESS

1. Exchange of goods and services.

2. Profit is the primary objective of business.

3. Involvement in numerous states transactions.

4. Marketing and Distribution of goods

5. Business Risks and Uncertainties

6. Availability of Buyer and seller

7. Production of goods and services

8. Business skills for economic success

9. Social obligations

10. Meeting human needs and wants

SCOPE OF BUSINESS
The scope of business is very broad.it covers a large number of activities which may be looked into from
two perspectives,namely: Industry and commerce (SUTHERLAND & CANWELL 2004)

(A) Industry: The activities of extraction, production, conversion, processing or fabrication of products
are described as industry.
(i) Consumers Goods.
(ii) Capital Goods
(iii) Intermediate Goods
Primary industries: Primary industries include the followings as listed below:
-Extractive Industries:In extractive industries,the industries extract or draw their products from natural
sources such as earth,sea,air.

-Genetic Industries: Genetic simply means parentage or heredity. Genetic Industries are engaged in
breeding plants, and animals for their use in further reproduction.

Secondary industries: Secondary industries include the followings as listed below

-Manufacturing Industries
-Construction Industries

- Manufacturing Industries: These are engaged in producing goods through the creation of what is
known as form utility such industries are engaged in the conversion or transformation of raw materials
or semi finished products into finished products. The products of extractive industries generally become
the raw materials of manufacturing industries. Factory production is the outcome of manufacturing
industry. Manufacturing Industries may take any one of the following forms.
- Analytical
- Synthetic
- Processing
- Assembly line
- Construction Industries

(B) COMMERCE:It is an interchange of goods or commodities, especially on a large scale between

different countries (Foreign commerce) or between different parts of the same country (domestic
commerce) trade; business. It can also refer to the process of buying and selling. The concept of
commerce usually covers two important areas:
(i) Trade
(ii) Service business or Aids to trade

(i) Trade: The term trade refers the act or process of buying, selling or exchanging commodities,at either
wholesale or retail, within a country or between countries. Trade can be categorized into two
classifications:
(a). Domestic Trade: This is also refers to as internal trade. It is internal because,it only focuses on buying
and selling of goods within the boundaries of a country and the payment for the same is made in
national or local currency either directly through the banking system.

(b). Foreign Trade: It is also known as international trade.it refers to the exchange of goods and services
between two or more countries.

(ii). Service business: These are usually regarded as Aids to Trade. This is classified below

- Banking
- Transportation
- Warehousing
- Insurance
- Advertising
- Communication: These scopes of business are the principal issues that business activities must worked
on because they are the core areas of business.
- Demanding Analysis and Forecasting
- Cost and Production Analysis
- Pricing Decisions, Policies and Practices
- Profit Maximization
- Capital Management
- E-commerce

BENEFICIARIES OF BUSINESS
There are many beneficiaries of business activities;however,the paper will only focus on the following
under listed people:
- Business Owners
- Employees
- Government
- Society

STAKEHOLDERS OF THE BUSINESS

Stakeholders are persons or group of persons who have committed something in the business enterprise
and, therefore,have expectations from it. This is totally different from beneficiaries of business.
Stakeholders are those involved in, affected by or able to influence the business. The following are the
general stakeholders of the business in any economy:
- Communities
- Competitors
- Customers and Consumers
- Employees and agents
- Families
- Government
- Media and advocacy groups
- Owners/Shareholders
- Society
- Suppliers

CHAPTER 2

CONCEPT OF ENTREPRENEURSHIP AND CHARACTERISTICS OF ENTREPRENEURS

CONCEPT OF ENTREPRENEURSHIP
Entrepreneurship is an ancient concept that is both simple and complex at the same
time.Conceptualizations, definitions and understandings of the phenomenon have attracted scholars and
practitioners for a very long time. While we struggle and try to capture it,as we seem to get closer to a
satisfactory resolution,we find that the concept continues to evolve (Falcone & Osborne). After thirty
years of intensive study of the phenomena,the research community still spends much energy on the
definition of the concept of entrepreneurship. This shows the complexity of the area as well as the
process,and that this could and should be exploited from different frames of understanding
(Blenker.Dreiler & Kjeldsen,2006).

Even though the definition of entrepreneurship has been debated among

scholars,educators,researchers, and policy makers since the concept was first established in the early
1700's ,there is still no complete consensus on the definition of this field of study (Morales Gualdron &
Roig,2005).

DEFINITION OF ENTREPRENEURSHIP

A firm's actions relating to product market and technological innovation by MILLER (1983).

The creation of new combinations by KANTER (1985)

The process of new venture creation;the process by which new organizations come into existence by
GARTNER (1985;1989)

The practice of creating or innovating new products or services within existing business or within newly
established business by SCHULER (1986)

ENTREPRENEUR
Behind all innovative business,there are entrepreneurs, individuals who possess the foresight,belief and
boldness to build something new. it is a fact of human existence that some individuals are more capable
than other, that some individuals are harder workers than others, and that some individuals are better at
creating wealth than others.

Schumpeter classified the entrepreneur as a sociologically distinct individual,who sees an

opportunity,seizes it,and creates a new marketable process,or otherwise creates a new marketable
contribution to the economy.

ESSENTIAL CHARACTERISTICS OF AN ENTREPRENEUR

According to Vanishree (2013),there are characteristics that are found within all successful entrepreneurs
and without which most people will fall short of what it takes to succeed in an entrepreneurial
enterprise.

CONFIDENCE:is a Hallmark of the entrepreneur. Not all of us are born with confidence but that does not
mean we are not capable of it.

FEELS A SENSE OF OWNERSHIP: Taking responsibility for getting things done and doing them with care
and attention means to act like an owner. Rather than viewing a problem as someone else's the
entrepreneur sees it as his or her own and take pride in finding a solution, leaving things in better shape
than they were before encountering them,and improving upon situation rather than leaving unattended.

ABLE TO COMMUNICATE
Entrepreneurs recognize that the most important part of any business is the human element. Human
resources whether in the form of clients, employees,or strategic partners are what makes or breaks a
business and communication is the key to successful relationships with the people. The entrepreneur
works to own communication skills, whether those are written,spoken,or non verbal messages conveyed
through body language.

PASSIONATE ABOUT LEARNING

Entrepreneur are often autodidactic learners which means that much of what they know they learned
not in formal classroom setting but instead on their own by seeking out information, asking questions,
and doing personal reading and research. They are also quick to learn own mistakes,which means they
are less prone to keep repeating them due to arrogance,ego,or blindness to one's own faults,
shortcomings,or errors in judgement.

TEAM PLAYER
Those who go into business for themselves but do not utilize teamwork wind up without the team but
still have all the work to get done. They shoulder the whole burden for themselves and wind up just
trading their old job for a new and more demanding one in an attempt to be self employed.

SYSTEM ORIENTED
Like mathematical formulas,good system allows us to produce great result every time with less and less
exertion of energy or resources. Entrepreneur relies upon people, and they look for system based
solutions before searching for human resources solutions.

GRATEFUL
Being grateful for what we have opens us up to receive more and one reason that is true is because
those who are grateful appropriates what they are given. They respect it and nurture it.

OPTIMISTIC
A positive outlook is essential for the entrepreneur,who learns to see setbacks as bargain price tuition for
the valuable business lessons gained through firsthand experience. Past shortcomings failure or
disappointments are relegated to the past so that they cannot continue to haunt the present or obstruct
the future.

GREGARIOUS
Because business is all about people, entrepreneurs tend to be socially outgoing. They get excited about
sharing ideas, products and services and what enticement is contagious to their employees, client,
friends and other contact both within and beyond the business sphere.

A LEADER BY EXAMPLE
Entrepreneur not only lead themselves through self motivation and self starter who jump into task with
enthusiasm, but they are also skill at leading other. They know the importance of team work,and they
understand the need to appreciate other, support them and reward them accordingly.

NOT AFRAID OF RISK OR SUCCESS

Many people could be successful if they only took chances. And many people who do that chances and
become somewhat successful find the realization of their dreams on overwhelming possibility,so they
sabotage their continue success by retreating back into a comfort zone of smallness.
CHAPTER 3

SMALL BUSINESS MANAGEMENT

In starting or managing a business whether small or large,factors such as the personality of the
entrepreneur, financial capability, experience and skill, attitude,vision and perseverance are important
factor to be considered. Small and medium scale enterprises are very important in any economy that
truly wants to develop. The sector contributes 30--40% of all employment in USA and Europe. The Asian
Tigers such as Malaysia, Indonesia and Thailand also progressed through the development of their SMEs.
The sector is often referred to as engine of growth and development.

CHARACTERISTICS OF SMALL BUSINESS IN NIGERIA

According to Olawale (2010) and Olagunju (2004),the following are the main characteristics/feature of
Small Business in Nigeria.

i. Labour intensive purposely to generate employment

ii. Capital formation to speed up national development
iii. Affordability by most people
iv. Open opportunities for greater participation by many people i.e free entry into the market
v. There is free exit from the market
vi. Effective use of local resources
vii. Small business can be found in limited area
viii. It can only serve a small part of the market

THE PROCESS OF ESTABLISHING BUSINESS ORGANIZATION IN NIGERIA

The setting up of small or large business organization in Nigeria entails certain processes. This does not
necessarily follow any order of hierarchy. To Bamford and Bruton (2006),the most important of these
processes includes:

1. Identification of the need of consumers

2. Acquisition of productive resources
3. Registration with appropriate authorities
4. Installation of plant and machineries for the production of goods and services.
5. Pricing, Promotion, advertisement and distribution of goods and services to intending consumer.

CLASSIFICATION OF BUSINESS ORGANIZATIONS

There is no universal classification of business organization across the world. A small business
organization in USA is a large industry in Nigeria. Specifically in Nigeria,Onuoha (2013) was of the opinion
that the following bodies such as central Bank of Nigeria (CBN),Centre for Management Development
(CMD), Nigeria Bank for Commerce and Industry (NBCI) as well as Bank of Industry have different
classifications of business organizations. The classification entails the cost of doing business excluding
cost of land and the number of workers employed. However,the definition of the National Council of
Industry (NCI) is among the most liberal of all the definitions of business organizations. What most
people refer to as small business in Nigeria are micro/cottage industries. Towards this end,the table that
follows categorizes businesses in Nigeria based on their total cost of doing business excluding cost of
land and the number of workers employed.

EMERGENCE OF SMALL AND MEDIUM ENTERPRISE IN NIGERIA

Before the coming of the Colonial masters, trading and Manufacturing activities have been in existence
in every part of Nigeria. This was why many family compounds were named after the trading activities of
its members. Towards this end and with a view of promoting the activities of business in Nigeria,the first
three national development plans were targeted towards the development of large and heavy industries.
A decline in the international price of oil made the Nigerian government under its fourth National plan
(1981--1985) to put greater emphasis on self sufficiency and the development of small business in
Nigeria. The coming of European missionaries and later traders also changed the nature and kind of
business activities in Nigeria. The coming of United Trading Company (UTC) also expanded the frontiers
of entrepreneurial activities in the country. Olagunju,(2008). The fall in crude oil prices resulted in acute
shortage of foreign exchange to procure required industrial raw materials and spare parts for the large
industries in the country (Charles,N.O.et al,2010). More so,the failure of the first National plan (1962--
1968), second National plan (1970--1974) and the third National plan (1975--1980) which focused on
large scale import substituting Industries to achieve its desired goals calls for an alternative development
strategy. The increasing awareness of the potential roles of small and medium scale enterprises in the
sustained growth and development of Asian countries prompted the Nigerian government to shift its
priorities to the promotion of SMEs,under the fourth National Development Plans (Kadiri,2014) and
Charles, N.O. et al.,(2010).

SMEs AND NIGERIAS ECONOMIC DEVELOPMENT

According to the World Bank,one of the strongest factors in the growth of any nation's Gross National
Product (GNP) is the presence of small and medium enterprises (Bamford and Bruton,2006). Countries
all over the world have continued to encourage the establishment and development of SMEs.
Stakeholders such as the government, entrepreneur as well as the world bank have continued to
contribute significantly to the development of SMEs. The world bank for instance have assisted the
Nigerian government over the years with SME loans (Charles,2010). The Nigerian government also
assisted the SMEs with the establishment of Nigerian Bank for Commerce and Industry (NBCI), Small
Scale Industries Credit Scheme (SSICS), Nigeria Industries Development Bank Ltd (NIDB), The Nigerian
Export -- Import Bank (NEXIM) and so on to assist the SMEs because of the numerous advantages
derivable from the sector.Past studies have shown that SMEs because of the numerous advantages
derivable from the sector. Past studies have shown that SMEs have propelled Asian Tigers into the world
limelight. China, Malaysia and Japan have developed due to their un relented interest in the
development of SMEs.

SMEs over the years have contributed significantly to the economic development of the country. These
areas among others include:
i. Provision of employment
ii. Reduction in poverty
iii. Income generation to individual/govt.
iv. Utilization of the abundant raw materials
v. Provision of foreign exchange
vi. Availability of various kinds of goods
vii. Stimulation of indigenous entrepreneurship
viii. Greater innovation and creativity
ix. Mobilizing savings and investments

PROBLEMS FACING SMEs IN NIGERIA

1. Finance
2. Infrastructural facilities
3. Corruption
4. Conducive business environment
5. Dumping of foreign goods
6. Inefficient administrative skills/management

CHAPTER 4

NIGERIAN BUSINESS ENVIRONMENT

The business environment may serve as constraints and may offer opportunities to the businessmen.
The business environment is dynamic,that is changes over time,and it also varies across geographical
space.

TYPES OF BUSINESS ENVIRONMENT

There are several ways of categorizing the business environment, however,in this chapter business
environment is broadly categorized into two

1. Internal environment: The internal environment is made up of factors that the firm can alter so as to
improve the performance of the firm. These include mission and objectives of the firm,value system
quantity and quality of physical as well as human resources, management structure and style,and
financial position among others.

2. External environment: consist of those factors that affect the performance of a business from outside.
The external environment is generally classified into two:
i) the micro environment:are all agents whose decisions and activities have direct bearing on the
production and sale of business enterprise.

ii) the macro environment: consist of aggregate variables/factors which do not affect the functioning of
business enterprises but affect the entire economy. This macro environment can further be classified
into
i) economic environment (World Bank)

ii) political and legal environment(World Bank Governance indicators, Intellectual properties right)

iii) social cultural environment (life expectancy)

iv) technological environment(Advances in information technology IT)

v) international environment(World Trade Organization WTO, International Monetary Fund IMF,The

World Bank, United Nations UN, International Labour Organization ILO)
vi) natural environment (Water and forest resources, availability of minerals and oil resources)

FEATURES OF NIGERIA BUSINESS ENVIRONMENT

The Nigeria business environment represents the largest market in Africa in terms of population and also
represents one of the biggest demand capacity particularly after the rebasing of the GDP.This includes

1. Infrastructure inadequacy
2. Insecurity
3. Frequent Changes in Government policies
4. Difficulties of Accessing Funds
5. Lack of Government support

JUXTAPOSING NIGERIA BUSINESS ENVIRONMENT WITH SELECTED AFRICAN COUNTRIES

Data on some of the indicators discussed in section 2 are used to compare the business environment in
Nigeria and four others African countries,these are Egypt (North Africa), Ghana(West Africa),Kenya (East
Africa) and South Africa ( Southern Africa).Twelve indicators are used to measure political and legal
environment for the five countries. The polity2 value is a measure of the openness of the political system
of a country,the value ranges from -10 to 10,where 10 is classified as full democracy,6 to 9 is
democracy,1 to 5 is open anocracy in spite of the return to democratic governance since 1999. If the
political process is not open, narrowing group of people will be in control of decision making, including
decisions that matter to the businessmen hence,this could present threat to business. Constraint on
executive is an index in polity dataset which measures the extent of institutionalized constraints on the
decision making powers of chief executive whether by individual or collectives. The value ranges from
minimum of 0 to maximum of 10 (sufficient constraint). Nigeria's score 5 mid point of the maximum
value. South Africa and Kenya scored highest point in both polity2 and executive constraint. Control of
corruption is an indicator which measures the extent to which public power is exercised for private gain,
including both petty and grand forms of corruption, as well as capture of the state by elites and private
interests. Political stability and Absence of violence/Terrorism captures the likelihood that the
government will be destabilized or overthrown by unconstitutional or violent means including politically
motivated violence and terrorism. Finally, voice and accountability measures the extent to which
country's citizens are able to participate in selecting their government,as well as freedom of expression,
freedom of association and a free media. These six indicators are the World Bank Governance indicators
which give every country a score on each indicator in units of a standard normal distribution, ranging
from minimum of -2.5 to maximum 2.5. Nigeria's score in all the six indicators are negative,though worst
in political stability and absence of violence/terrorism.

CHAPTER 5

ENTREPRENEURSHIP OPPORTUNITIES IN NIGERIA THROUGH SMEs.

In Nigeria,the SMEs sub sector has been expanding, especially since the mid 1980s,to following the
introduction of SAP which forced many large enterprises to lay off large proportions of workforce. The
sector accounts for about 70.0 percent of industrial employment (World Bank,2005).

THE CONCEPT OF ENTREPRENEURSHIP

The term entrepreneur was first used in the early 18th century by an Irish man by name cantillon who
was then living in France. The term therefore is a French word. Entrepreneurship is a term used broadly
in connection with the innovative modern industrial business leader.He/She has been described as the
person who perceives business opportunities and takes advantage of the scarce resources to use them. It
is He/She alone who bears the non insurable risks in his enterprise and it is He/She who directs the
human and material resources in his business objectives. To qualify as an entrepreneur,it is not sufficient
to be a business man just managing an enterprise.He/She has to be an originator of profitable business
ideas. According to Schumpeter the single function which constitutes entrepreneurship is
innovation,whilst the business director is mostly engaged in managerial activities which are non
entrepreneurial.

HISTORY AND DEVELOPMENT OF ENTREPRENEURSHIP IN NIGERIA

Although some people contend that the earliest beginnings of entrepreneurial theory data back to the
writings of Richard Cantillon (1755),most scholars agreed that there are no serious theoretical studies
and formulations on entrepreneurship until the works of max Weber and Joseph Schumpeter. Other
prominent writers in the field include David Mcclelland,Le Vine,Everett Hagen,Edith Penrose,Thomas
Cochran,Frank Young,John Kunkel,Akeredolu Ale,Olakanpo,Schatz and Edokpayi.
The theories postulated by these authors most of which are aggressively empirical are very diverse. They
range from sociological, psychological, economic imperatives. Some authors attempt to relate the
emergence of entrepreneurs to religious, social and cultural characteristics. The only conclusion from
these theories can be that, several factors not just one explain why an individual goes unto business. In
Lile's words,"certain kinds of experiences and situational conditions,rather than personality or ego are
the major determinants of whether or not an individual becomes an entrepreneur".

THE CHARACTERISTICS AND ROLES EXPECTATION OF AN ENTREPRENEUR

Schools of Entrepreneurial thought divided entrepreneurship into specific activities namely: Macro views
and Micro views.

Macro views are the external process beyond the control of the individual entrepreneur while the Micro
views are factors specific to entrepreneurship and part of internal locus of control. The characteristics
include:

Psychological characteristics
1. They have high need for achievements and success
2. They possess strong desire for responsibility and independence
3. They have a high degree of self confidence
4. They do not like routines work,they venture some and like to experiment

Sociological Characteristics
5. Entrepreneur are goal oriented
6. They have capacity to adapt to changing conditions
7. They have ability to organize men, materials, money and machines to achieve goals Economic
characteristics

Economic characteristics
8. Profit Oriented
9. Risk
10. Ability to innovate and speculate
THE ROLE OF THE ENTREPRENEUR.
1. He identifies business opportunities,mobilize and organizes the resources to tap the opportunities
2. He carefully implements his business plans to ensure achievement of his goals.
3. He market his products, services and ideas
4. Effective performance of the finance and production
5. Innovation through improvement of methods of production or technology

ATTRIBUTES OF A POTENTIAL ENTREPRENEUR.

- Means:This is the capital or access to resource.

- Ability to materialize his vision: this is having the physical end mental capacity to understand their
vision in ways required to succeed in their planned goals.

- Desire: through there are lots of ideas but it takes desire to invest in any idea.

RISK AND REWARDS OF ENTREPRENEURSHIP IN SMEs

Risks: the risk of entrepreneurship can be classified into three
Financial
Career
Personal

Rewards:The reward of successful entrepreneurship include:

The chance of accumulating a lot of wealth,fame, social distinction and recognition from the use of one's
talents and energies in building a successful company of his own

Possibility of receiving a disproportionately high return on investment of energy, time and worry,relative
to other equally talented hardworking people.

WHAT IS A SMALL BUSINESS

Small Scale Enterprises can be described as enterprise employing between 1-35 people. They utilize by
products or intermediate products from larger farms. They also utilize local,raw materials. Some defined
small/medium scale enterprise as those employing less than 100 people in the business.

ROLES OF SMEs IN DEVELOPING OUR ECONOMY

SME is the backbone of successful economies like USA where over 23 million small business employ
more than 50% of the private workforce and generate more than half of the nation's GDP.
E.U:SMEs are seen largely as essential for European employment. Each year one million new SMEs are
set up in the E.U,SME's account for 99.8% of all companies and 65% of business turn over in the
TAIWAN:70% of jobs are generated by production activities that employ less than 20 workers each
40,000 firms account 75% of its exports.
SMALL SCALE BUSINESS
- Firewood supply
- Organizing Labour squads
- Home Laundry service
- Raising of Flowers
- Refuse packing
- Consultancies ECT.

MEDIUM SCALE ENTERPRISES

- Piggery
- Soap production
- Palm kernel oil production
- Nylon production
- Ice block production
- Hair/Body cream products ECT.

CHAPTER 6

CREATIVITY AND INNOVATION IN ENTREPRENEURSHIP

CREATIVITY
Creativity is the ability to make or otherwise bring into existence something new, whether a new
solution to a problem,a new method or device,or a new artistic object or form (Okpara 2007). It is also
widely described as the ability to develop new ideas and to discover new way of looking at
problems,threats and opportunities. Creativity is also seen as the generation of ideas that result in the
improved efficiency and effectiveness of a system.

THE PRINCIPLES OF CREATIVITY

According to Isaksen,Dorval and Treffinger (1994), people become more creative when they feel
motivated primarily by the interest, satification, passion and interest.Isaksen et al (1994) noted that
every individual's level of creativity is a function of three components:
1. Expertise: Expertise encompasses everything that a person knows and can do on the broad domain of
his or her work knowledge and technical ability.

2. Creative thinking: refers to how you approach problems and solutions the capacity to put existing
ideas together in new combinations. The skill itself depends quite a bit on personality as well as on how
a person thinks and works.

3. Motivation:is the drive to do something,an inner passion and interest. When people are intrinsically
motivated,they engage in their work for the challenge and enjoyment of it;by implication the work itself
must be motivating.

THE CREATIVE BRAIN

The creative process involves seven stages;
- Preparation
- Investigation
- Transformation
- Incubation
- Illumination
- Verification and
- Implementation

CREATIVE THINKING
Creative thinking as defined by Okpara (2007) is the act of generating solution to problems by the force
of imagination and reasoning. It is an ability of the mind seeking to find answers to some life's questions.
In a dynamic and changing world,the challenges of man are not static. They take on new forms and
require a deep understanding of the creative approach. Thinking is an indispensable tool in the life of all
successful entrepreneurs. Thinking begins with engaging yourself in a conversation with yourself by
yourself,in yourself. That is to reach a conviction and conclusion as to what steps to take and what
strategies to employ.

AREAS OF HUMAN CREATIVITY IN AN ORGANIZATION

According to Kuratko (2009), individuals in organizations can channel their creativity into 7 different
areas namely:
i. Idea creativity
ii. Material creativity
iii. Organization creativity
iv. Relationship creativity
v. Event creativity
vi. Inner creativity
vii. Spontaneous creativity

THE CRITICAL THINKING PROCESS

The thinking process has four commonly agreed steps (Kuratko,2009).
i. Background/Knowledge accumulation
ii. Incubation process
iii. Idea experience
iv. Evaluation and implementation

BLOCKS AND BARRIERS TO CREATIVE THINKING

There are three broad overlapping categories of blocks as explain by McFadzean (1998):
- Personal blocks: This explain lack of self confidence or self image;a tendency to conform;a need for the
familiar, habit bound thinking; emotional numbness;saturation; excessive enthusiasm; various values and
cultural influences and lack of imaginative control.

- Problem solving blocks:are strategies, skills,or behaviours that inhibit ability to focus and direct
problem solving activities,generate and identify options and alternatives,or turn ideas into action.

- Environment blocks: are those factors in your context, situation,or setting that interfere with your
problem solving efforts.

CREATIVITY TOOLS FOR OVERCOMING BARRIERS

1. Paradigm preserving
2. Paradigm stretching
3. Paradigm breaking

CREATIVE APPROACHES TO PROBLEM SOLVING

In problem solving the barriers that block solutions must be addressed. Thus,in problem solving, do a bit
of divergent thinking and information gathering before selecting a solution and taking an action.

DEFINITION OF PROBLEM
A problem is a condition that is not acceptable. It may involve tangible and/or intangible elements such
as people, processes, systems,states of affairs,products, circumstances or any business or personal
situation.

CREATIVE PROBLEM SOLVING (CPS) TECHNIQUE.

CPS is a technique to approach a problem or address a challenge in an imaginative way;it helps us flex
our minds, find path breaking ideas and take suitable actions thereafter.CPS can be used to look for
interesting, out of the box solutions to problems. To qualify as CPS,the solution must solve the stated
problem in a novel way,and the solutions must be reached independently (Williams,1998).

DEFINITION OF SOLUTION
A solution is a man made resolution to a problem. There are two common types of solutions

i. Bad: Am unsatisfactory solution.

ii. Good: This is satisfactory solution to a problem.

CREATIVE SOLUTION
The creative solution many times a solution is considered creative if components that are readily
available can be used, and when there is a short time limit within which to solve the problem. The
following are types of creative solutions as identified by (Isaksen,1994).

Innovations: All innovation begin as creative solutions,but not all creative solutions become innovation
(Richard,2014).

Invention

WHAT IS A CREATIVE TECHNIQUE

A technique is simply the way you move toward, advance,or come closer to something. It is a way of
making change happen. A creative technique implies that you are attempting to advance toward an
outcome that is new.

TECHNIQUES AND TOOLS FOR CPS

Mental state shift

Problem reframing
Multiple idea facilitation

Inducing change of perspective

CONCEPTUAL BLOCKS TO CPS

Constancy

Commitment

Compression

Complacency

INNOVATION
Innovation comes from the Latin word "innovare" meaning to "to make something new". Essentially,it is
defined as adding something new to an existing product or process. The key words are adding and
existing.

THE ELEMENTS OF INNOVATION

1. Challenge
2. Customer focus
3. Creativity
4. Communication
5. Collaboration
6. Completion
7. Contemplation
8. Culture
9. Context

FORMS OF INNOVATION
i. Innovation in processes
ii. Innovation in product or services
iii. Innovation in management and work organization.

TYPES OF INNOVATION

1. Invention
2. Extension
3. Duplication
4. Synthesis
PRINCIPLES OF INNOVATION
i. Action oriented
ii. Make the product, process or services
iii. Make the product or services
iv. Start small
v. Aim high
vi. Try/test/revise
vii. Learn from failure
viii. Follow a mile stone schedule

SOURCES OF INNOVATION

- Trends
- Unexpected occurrence
- Process needs
- Incongruities
- Industry and market structures
- Demographic
- New knowledge

THEORIES OF INNOVATION
Different theories of innovation that have been put forward to prove the phenomenon of innovation

DIFFUSION THEORY OF INNOVATION

According to diffusion theory of innovation, once innovation occurs, innovation may be spread from the
innovator to other individuals and groups.

CHAPTER 7

FEASIBILITY STUDY AND FEASIBILITY REPORT WRITING

A feasibility analysis is the process of determining whether an entrepreneur's idea is a viable foundation
for creating a successful business. Its purpose is to determine whether a business ideas is worth
pursuing. A feasibility study is not the same as a business plan both play important, but separate, roles in
the start up process.Feasibility studies are particularly useful when entrepreneurs have generated
multiple ideas for business concepts and must winnow their options down to the best choice. They
enable entrepreneurs quickly to explore the practicality of each of several potential paths for
transforming an idea into a successful business venture.

For an entrepreneur to conduct a reliable feasibility study,he/she must possess the following
abilities/skills:

(a). Economic skill

(b). Market skill

(c). Technical skill

(d). Financial skill

(e). Managerial skill

CONDUCTING A FEASIBILITY ANALYSIS

A methodology for conducting a feasibility analysis is describing its six key areas:
Business concept
Industry/Market feasibility
Product/Service feasibility
Organizational feasibility
Manufacturing or operations
Financial feasibility

BUSINESS CONCEPT
A key concepts subsection of business concept describes whether the proposed concept is a retail,
wholesale, manufacturing or services business. Business concept includes a clear description of the
targeted customer,the value proposition in terms of benefits gained for that customer.

INDUSTRY/TARGET MARKET FEASIBILITY ANALYSIS

Industry/target market feasibility is an assessment of the overall appeal of the industry and the target
market for the product or services being proposed.

TARGET MARKET ANALYSIS

A target market is a specific group of customers within a large market segment that represents a
narrower group of customers with similar needs.

PRODUCT/SERVICE FEASIBILITY ANALYSIS

A product or services feasibility analysis determines the degree to which a product or services idea
appeals to potential customers and identifies the resources necessary to produce the product or provide
the service. This portion of the feasibility analysis address two issues which are

1. Product/Service Desirability
2. Product/Service Demand

MANUFACTURING OR OPERATIONS FEASIBILITY ANALYSIS

Depending on the nature of the business,a manufacturing or operations feasibility analysis may not be
required.

1. Facilities
2. Inventory Management
3. Human Resource Requirements
4. Operational Rationale
5. Legal and Insurance Issues
FINANCIAL FEASIBILITY ANALYSIS
This component of a feasibility analysis involves assessing the financial feasibility of a proposed business
venture. At this stage of the process,a broad financial analysis is sufficient. For feasibility analysis,a
preliminary financial assessment is usually sufficient;indeed, additional rigor at this point is typically not
required because the specifics of the business will inevitably evolve making it impractical to spend a lot
of time early on preparing detailed financial forecasts.some added analysis of value

1. Capital Requirements
2. Estimated Earnings
3. Return on investment
4. Overall financial Attractiveness of the proposed venture

CHAPTER 8

VALIDATION OF PRODUCTS AND SERVICE IDEAS

WHAT IS IDEA VALIDATION?

Idea validation in view of Zenhom (2015) is the process of testing and validating your idea prior to
launching your business name,tagline,product, service or website. That is,the process of achieving
increased certainty that a product idea will indeed be successfully adopted in market.

SOURCES OF BUSINESS OPPORTUNITIES IN NIGERIA

1. Entrepreneur's Social Networks
2. Prior Experience
3. Existence of a similar Business
4. Hobby/Personal Interest
5. Market Research
6. Electronic and print Media

SCANNING BUSINESS OPPORTUNITIES IN NIGERIA

Scanning for Business opportunities cover the following among others:

a). Technology,basic research and development, application of research and development.

b). Government regulations (Legal)
c). Financial Factors
d). Economic conditions
e). Social and cultural factors
f). Political
g). Climatic conditions.

CHAPTER 9

BUSINESS PLANNING AND CONTROL

Planning is the establishment of objectives and the formulation, evaluation and selection of the policies,
strategies,tactics and actions required to achieve these objectives.Planning for business therefore
involves the establishment of the objective(s) and taking all those necessary steps to achieve them.

STRATEGIC PLANNING/STRATEGIC FRAMEWORK

Strategic planning,or developing a strategic framework,is about the bigger picture. It is through strategic
planning that an organization develops a strategic framework. This framework helps the organisation
determine its priorities and the strategies that are likely to help it achieve its vision of the future.

BUSINESS CONTROL

Control is the process of comparing actual results with planned or budgeted results and reporting upon
variations.

BUSINESS PLAN
Business plan is a document that details the business objective(s) and means of achieving the
objective(s). By way of definition,a business plan could be defined as a document preparation by the
management that summarize the operational and financial objectives of a proposed or existing venture
and contains the detailed plans and budgets showing how the objectives are to be realized. Business
plans may be externally or internally focused.

PREPARING A BUSINESS PLAN

Business plans are decision making tools. There is no fixed content for a business plan.Rather the
content and format of the business plan is determined by the goals and audience. A business plan should
contain whatever information is needed to decide whether or not to pursue a goal.

CHAPTER 10

ENTREPRENEURSHIP APPROACH TO MARKETING OF PRODUCTS AND SERVICES.

Entrepreneurship is about creation of value through fusion of capital,risk taking, technology and human
talent. This provides a multi - dimensional nature of entrepreneurship,Badi & Badi (2012) gave nine
theories about the distinctive features of entrepreneurship as summarised by different eminent thinkers
as follows:
- Innovation
- A function of high achievement
- Organization building function
- Function of a Group level pattern
- Function of Managerial skills and leadership
- Gap filling function
- A function of status withdrawal
- A function of Religion beliefs

MARKETING
Marking has various definitions but only few of these will be given consideration in this chapter.
Marketing according to the American Marketing Association (2009) is defined as the activity,set of
institutions, and processes for creating, communicating, delivering and exchanging offerings that have
value for customers,clients, partners and society at large. The definition above has four important
elements which are identified as follows

i. Creating
ii. Communicating
iii. Delivering
iv. Exchanging

CONCEPTS OF MARKETING

Consumer Markets

Business Markets

Global Markets

Non profit and Governmental Markets

MARKETABLE ENTITIES

Goods
Services
Events
Experience
Persons
Places
Properties
Organizations
Information
Ideas

MARKETING FUNCTIONS

Exchange functions
Physical functions
Facilitating functions

PRODUCTS AND SERVICES.

Product:A product is anything that can be offered to a market to satisfy need or want.

Service:is defined as any act or performance that one party can offer to another that is essentially
intangible and do not result in the ownership of anything.
SMALL AND MEDIUM SCALE ENTERPRISES (SME) MARKETING
Small business plays very important roles in the economic development of any nation, because it serves
as the most viable and veritable vehicle for self sustaining industrial development. Small business are
called different names such as Small and Medium Scale Enterprises (SMEs),Small Scale Industries (SSI),
and Micro,Small and Medium Enterprise (MSMEs)

CHAPTER 11

HUMAN RESOURCES MANAGEMENT PRACTICES FOR ENTREPRENEURSHIP

HUMAN RESOURCE PLANNING (HRP)

Human resource planning is important for helping both organizations and employees to prepare for the
future.

RECRUITMENT
Recruitment forms a step in the process which continues with selection and ceases with the placement
of the candidates.

SELECTION
Human resource selection is the process of choosing qualified individuals who are available to fill
positions in an organization. Steps in selection process according to Flippo involve the following

Application pool
Preliminary screening and interview
Application Blank or Application form
Selection Tests
Interview
Background investigation
Physical Examination
Approval by Appropriate Authority
Final Employment Decision
Evaluation

PLACEMENT AND ORIENTATION

After an employee has been recruited he is provided with basic background information about the
employer, working conditions and the information necessary to perform his job satisfactory. The new
employee's initial orientation helps him perform better by providing him information of the company
rules,and Practices.

EMPLOYEE TRAINING
Training is a process of learning a sequence of programmed behavior. It is the application of knowledge
and gives people an awareness of rules and procedures to guide their behavior.it helps in bringing about
positive changes in the knowledge,skill & attitudes of employees.

COMPENSATION
Compensation is a key concepts that entrepreneurs must understand and use well in their quest for
building a virile enterprise.

PERFORMANCE APPRAISAL
Performance appraisal is the systematic assessment of an individual with respect to his or her
performance on the job and his or her potential for development in that job.

METHOD OF PERFORMANCE APPRAISAL

Ranking Method

Paired Comparison

Grading Method

Check list Method

DISCIPLINE
There must be ways of checking human excesses in the management of Human Resources in any
organization that will succeed and excel in its assignment. Discipline could be in any of the following
ways:

Work without pay

Suspension
Transfer
Payment of fine
Loss of promotion
Loss of opportunity
Total dismissal/sack

SUCCESSION PLANNING
Succession plan is a deliberate and conscious act of placing a man or woman in a position of authority to
take over the affairs of another senior person.

SUCCESSION PLANNING PROCESS

Identify critical positions

Identify competences
Identify succession management strategies
Document and implement succession plans
Evaluate Effectiveness

CHAPTER 12
SOURCE OF FINANCE

RETAINED PROFIT
This is undistributed profit arising from the activities of the organization. For instance XYZ Nig. Ltd has
been operating for the past 3 years and making profits of 1 million annually. Assuming no dividend was
paid out of these profits,if the company needs some funds for capital investment,the undistributed profit
serves as the internal source of fund for the capital project.

PROVISION FOR TAXATION

It is the law of the land that corporate entity should make provision for taxes on the net profit of each
period. It called provision because they will not pay the tax immediately until after a financial year of
that organization.

DEBT COLLECTION
A debtor is someone who owes a business money. A business can raise fund by collecting the money
owned to them (debts) from their debtors.

SALE OF FIXED ASSET

This money comes in from selling off fixed assets,such as a piece of machinery that is no longer needed.

SALE OF STOCK
This money comes in from selling off unsold stock. This usually happens in the month of January sales. It
is when the profits made are ploughed back into business that it becomes short term internal source of
finance.

EXTERNAL SOURCES OF FINANCE

These are fund generated outside the organization. The introduction of external sources of finance will
either directly or indirectly expose the organization to financial risk.

External sources of finance could either be short, medium or long terms in nature. Short term refers to
financial obligations that have a period of less than or equal to one year

SHORT TERM EXTERNAL SOURCES OF FINANCE

Borrowing from friends and relatives

Borrowing from cooperative
Trade credits
Bank borrowing
Factoring of Debts
Accruals
Acceptance credits

ACCRUALS
Accruals are amount owning on services rendered to the firm which payment has not been made.
Accruals include wages payable.
MEDIUM TERM EXTERNAL SOURCES OF FINANCE
Medium term refers to financial obligations that have a maturity period greater than one year and up to
seven years. However,many financial analysts ignore the distinction between medium and long term
sources of finance.
The following items could be classified under medium term sources of finance. These include:
Term loans
Hire purchase agreement
Lease agreement

LONG TERM EXTERNAL SOURCES OF FINANCE

Long term refers to financial obligations that have a maturity period of up to ten years. It is argued that
maturity could be extended to 30 years. Long term finance is used in financing capital investment i.e
fixed assets.

GENERALLY LONG TERM SOURCES OF FINANCE IS DIVIDED INTO BONDS AND SHARES

BOND:A bond represents a method of long term borrowing by corporation or government agencies.
There are different classes of bonds. These include
Mortgage bond:These are bonds that are secured by specific assets of the corporation usually fixed
assets

Debenture bonds: The term debenture usually applies to the unsecured bonds of corporation.

Convertible bonds: These are bonds that have special provisions of being converted into common stocks
(shares) of the company at a specified price

Callable bonds

Serial bonds

SHARES: A company needs to maintain an equity base large enough to allow it to take advantage of low
cost debt and build an optional capital structure. Shares are known as equity.

CHAPTER 13

BASIC ACCOUNTING RECORDS FOR ENTREPRENEURS.

CHAPTER 14

APPLICATION OF ENGINEERING INVENTION AND INNOVATION TO ENTREPRENEURSHIP

CHAPTER 15
ENTREPRENEURSHIP AND THE LAW
CHAPTER 16

WORKSHOP PRACTICES FOR ENTREPRENEURS

JAVA CARES