LEARNING MODULE LEVEL I

TVET-TRAINING PROGRAMME PROVISIONS : - For all Level II & Level III Trainees

MODULE TITLE: - Entrepreneurship for employability - I

MODULE CODE: - TCEE-I (TVET, Common Course, Entrepreneurship for Employability –I)

MODULE DESCRIPTION: This module is designed to provide knowledge, skills and attitudes required in
promoting, improving and growing business operations.

LEARNING OUTCOMES:

Upon the completion this module the learner/trainees will be able to:

LO 1: Understanding Entrepreneurship Skills

LO 2: Starting an enterprise

LO 3: Generating Business Ideas and Recognizing Opportunities

LO 4: Understanding Employability Skills

MODULE CONTENTS:
LO 1: Understanding Entrepreneurship Skills
1.1 Basic Concepts of
1.1.1 Entrepreneurship
1.1.2 Entrepreneur and intrapreneur
1.1.3 Entrepreneur and manager
1.1.4 Enterprising and Enterprise
1.1.5 Identify the role of Entrepreneurship in Economic Development
1.2 Developments of Entrepreneurial mindset
1.2.1 Overview of Mindset
1.2.2 Entrepreneurial mindset
1.2.3 The importance of an entrepreneurial mindset
1.2.4 Distinguishing characteristics of entrepreneurial mindset
1.2.5 Developing Positive mindset towards work
1.2.6 Positive mindset to work
1.2.7 Developing effective work habit (Culture)
1.3 Understanding Entrepreneurial Competencies and Environment
1.3.1 Identify Personal Entrepreneurial competencies (PECs)
1.3.2 Assessing Entrepreneurial potential
1.3.3 Understanding Entrepreneurship and Environment
1.4 Entrepreneurial motivation and Decision
1.4.1 Entrepreneurial motivation
1.4.2 Entrepreneurial Decision

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 LO 2: Generating Business Ideas and Recognizing Opportunities
2.1. Business Ideas
2.1.1. Definition of business ideas
2.1.2. Identify Sources of business ideas
2.1.3. Generating and Screening business ideas
2.1.4. Applying Creativity and innovation in generating business ideas
2.2. Business opportunities
2.2.1. Definition of business opportunities
2.2.2. Identification of business opportunities
2.2.3. Assessment of business opportunities
2.3 Conducting a Feasibility study
2.3.1 Meaning of feasibility study/ analysis
2.3.2.Components of a feasibility study
2.3.3.Steps in conducting a feasibility study

LO 3: Starting an enterprise
3.1. Understand Classification of enterprises
3.2. Distinguish legal forms of business ownership.
3.3. Realizing facts of Micro and Small Enterprises in Ethiopia
 Key success factors for setting-up Micro, Small and Medium Enterprises
3.4. Establishing an enterprise
3.5. Basic Concepts of Marketing
3.5.1. Definition of Marketing
3.5.2. Importance of marketing
3.5.3. Identify Marketing Mix
3.5.4. Selection of Business Location
Major factors for selecting business location/
3.5.5. Selling and Customer service
3.6. Financing a business enterprise
3.6.1. Identify Sources of capital
3.6.2. Start-up Capital
3.7. Basics of Business Plan (Definition, importance and standard structure and format of
business plan

LO 4: Understanding Employability Skills

4.1. Definition of Employability Skill
4.2. Importance of employability skills
4.3. Common Elements of Employability skills

Training Methodology

Interactive Lecture, Activities, group discussion and reflection, Data collection and Discussion with Real World
Entrepreneurs, Field visit, invited guest(Model)

Learning Element One

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LO 1: Understanding Entrepreneurship Skills
Information Sheet 1 Basic Concepts of Entrepreneurship

1.1.1 Entrepreneurship
The word “Entrepreneurship” is derived from the French verb entreprendre which means “to
undertake”. The concept entrepreneurship refers “The process of identifying opportunities in the
market place, arranging the resources required for pursuing these opportunities and investing the
resources to exploit the opportunities for long term gains. It involves creating wealth by bringing
together resources in new ways to start and operate an enterprise.”
I. Elements (steps in the implementation) of Entrepreneurship
1. Observing the environment/identifying gaps,
2. Identifying opportunities,
3. Gathering the necessary resources
4. Implementing the activity and
5. Receiving rewards for engaging in the activity
II. Entrepreneurial Functions in Business
1. Identify gaps in the market and turn these gaps into business opportunities.
2. Finances and mobilizes resources for the business
3. Organize and manage the business.
4. Bear /tolerate/ the uncertainties and risks of the business.
5. Encourage competition
6. Self-employed and applying entrepreneurship
III. Economic Principles of Entrepreneurship
1. Works best in an open market economy
2. Promotes private enterprise
3. Adds value to products and services (creates wealth)
4. Providing needed products/service
5. Developing new markets
IV. Rewards for Being an Entrepreneur
1. Self-actualization /personal fulfillment
2. Feeling of freedom and independence
3. Providing jobs and benefits to others (investors, suppliers, bankers, subcontractors, work
force, and customers)
4. Economic goods (product/service, incomes for workers, profits for shareholders/partners)

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 V. Importance of entrepreneurship
The followings are the major benefits of entrepreneurship
1. Employment creation
2. Local resource utilization
3. Decentralization and diversification of business
4. Promotion of technology
5. Capital formation
6. Promotion of an entrepreneurial culture
VI. Meaning of Entrepreneur

Entrepreneurs are individuals who undertake an economic activity. On one extreme, an

entrepreneur is a person who brings change, possessing characteristics found in only a very small
fraction of the population. On the other extreme of definition, anyone who wants to work for
him/her is considered to be an entrepreneur.

VII. Types of entrepreneurs

Generally, there are four types of entrepreneurs as indicated here under:
 Personal achiever  Real manager
 Super-salesperson  Expert Idea Generator

Personal achiever
Personal achievers are the classic entrepreneurs. They are the types of people that we picture
when the term “entrepreneur” is used. They are the only types who must become entrepreneurs
to succeed in life. If they are placed in a non-entrepreneurial environment, they stand a good
chance of failure. They possess seven characteristics that relate to entrepreneurial success:
 Need for high achievement
 Need for performance feedback
 Desire to plan and set goals
 Strong individual initiative
 Strong personal commitment
 Internal locus of control

Super-salesperson
Generally, onlookers don’t view super sales people as having the potential for entrepreneurial
success. Their entrepreneurial strength is their approach to selling. They truly cater to the needs
of clients and customers, thus placing a strong stress on service. Super sales people are interested
in managing the customer into a sale, not in applying pressure tactics.
 Capacity to empathize

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  Social interaction and relationships are important
 Need to have strong positive relationships with others
 Sales force is critical
 Background: less education, more experience
Real manager
Real managers exhibit some of the traits of established entrepreneurs and some of the abilities of
corporate managers. They possess the following traits: desire to be corporate leader, compete,
decisive, desire of power and to stand out in a crowed.
Expert Idea Generator
Expert idea generators are people who have ideas for a business that can provide a real
competitive advantage. They become tremendously enthused about their ideas and spend a great
deal of time implementing them. Unlike personal achievers, who spend energy on an overall
venture, expert idea generators tend to focus on the idea exclusively. Very often, they will try to
persuade others to contribute to implementation and, if unsuccessful, they will abandon the idea.
They possess a majority of the following five characteristics:
 Desire to innovate
 Love of ideas, curious
 Belief that new products are crucial
 Intelligence is the competitive advantage
 Desire to avoid taking risks
VIII. Personal efforts to be an Entrepreneur
The nature of entrepreneurial activity requires the following extra efforts from an entrepreneur
 Works long hours
 Always concerned about the business
 Needs high energy
 Sacrifices other important aspects of life
 Limited social life
 Not much time with family and friends
 Financial investment

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The relationship between entrepreneurship and entrepreneur

1.1.2 Entrepreneur and Intrapreneur

Intrapreneurs are individuals who notice opportunities and take initiative to mobilize resources;
however they work in large companies and contribute to the innovation of the firm. Intrapreneurs
often become entrepreneurs. Diagrammatically, the differences between entrepreneurs and
intrapreneurs are shown below.

The relationship between entrepreneur and Intrapreneur

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1.1.3 Entrepreneur and manager
A manager is a person who plans, organizes, directs and controls the activities of an established
business. It is the manager who leads the business to its targets and who is responsible for the
business's success or failure. However, unlike the entrepreneur, a manager is not necessarily the
owner or the founder of the business.

Alternatively, the entrepreneur may or may not be the manager of the business. Even though it is
true that most entrepreneurs are the managers of their businesses, an entrepreneur may hire a
manager to run her/his business. Moreover, a manager may not have the qualities of an
entrepreneur while the entrepreneur may not have the skills to effectively manage an
organization like a good manager does. In fact, the problem many entrepreneurs face is leading
their businesses to success in today's dynamic environment.

The entrepreneur is the person who makes judgmental decisions under conditions of uncertainty
and who creatively turns the uncertainty into an advantage for the business she/he runs.

A manager is an employed person while an entrepreneur manages the enterprise for his/her
personal gain. The role of the entrepreneur and the manager may, however, overlap in many
cases. Generally, the major points of differences between the managerial and entrepreneurial
qualities are summarized below.
Summarized differences between the entrepreneur and manager
Point of
Entrepreneur Manager
Distinction
He/ she starts a venture by setting up The main aim of a manager is to
Goal
a new enterprise for his personal render his/her service in an enterprise
Management
satisfaction. already set up by someone.
Entrepreneur is the owner/founder of A manager is a servant in the
Status
the enterprise. enterprise.
An entrepreneur bears all risk and A manager does not bear any risk
Risk
uncertainty involved in the enterprise. involved in the enterprise.
Entrepreneurs for his/her risk bearing A manager receives salary as a
role he/she receives profits. The reward for services rendered which is
Rewards
reward is not only uncertain and fixed and regular. It can never be
irregular but can at time be negative. negative.
As an innovator s/he is called as
A manager executes the plans of the
change agent who introduces goods
Innovation entrepreneurs/owners/founders of the
and services to meet changing needs
business.
of the customer.

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1.1.4 Enterprise and Enterprising
Enterprise means always finding a way to keep yourself actively working towards your ambition.
Enterprise is two things. These are:
 Creativity
 The courage to be effective
An enterprise is considered to be any entity engaged in an economic activity, irrespective of its
legal form.
Meaning of Enterprising

An enterprising person is one who sees opportunity in all areas of life. To be enterprising is to
keep your eyes open and your mind active. It’s to be skilled, confident, creative and disciplined
to seize opportunities that present them regardless of the economy.

 Enterprising people always see the future in the present.

 Enterprising people always find a way to take advantage of a situation, not be
burdened by it.
 Enterprising people aren’t lazy. They don’t wait for opportunities to come to them,
they go after the opportunities.

Being enterprising doesn’t just relate to the ability to make money. Being enterprising also
means feeling good enough about yourself, having enough self-worth to want to seek advantages
and opportunities that will make a difference in your future. And by doing so, you will increase
your confidence, courage, creativity and self-worth which are aspects of an enterprising nature.”
Enterprising men and women exhibit the following characteristics
E: Energy R: Risk-taking
N: Need to achieve I: Innovation
T: Task oriented S: Skills
E: Empathy I: Independence
R: Resourcefulness N: Networking
P: Planning G: Goal oriented

On a personal level/in its wider sense, enterprising can be any identified idea that a person can
translate into a planned and satisfactorily implemented activity. In the business sense/in its
narrower sense/, enterprising refers to a business venturing or undertaking.
Practically all undertakings can be referred to as enterprising if they fulfill the followings.

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  Idea identification
 Planning
 Implementation,
 Successful completion of an activity and
 Receiving the rewards.

1.1.5 Identify the role of Entrepreneurship in Economic Development

Entrepreneurship helps to effectively utilize all the economic resources. More specifically,
human being can be better off, educated and modernized through entrepreneurship.
Government and individuals need to know that money can also be created when there
is entrepreneurial activity.

Entrepreneurship plays a key role in enhancing an economy in terms of the following:

 Creating jobs and additional wealth creation

 Promoting free enterprise and healthy competition
 Spreading prosperity and promoting economic growth
 Ensuring innovation and creativity
 Encouraging grassroots development
 Improving social and community conditions
 Shifting the mind set of being employed to self-employment.
Self-check questions
Instructions: - Discuss the following in brief.
1. List the five key elements of entrepreneurship.
2. Define entrepreneur.
3. Define entrepreneurship.
4. Describe the role of entrepreneurship in the economy.
5. What is entrepreneurship?
6. What is a Manager?
7. Who are intrapreneurs?
8. What are the economic principles of Entrepreneurship?

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Information Sheet - 2 Developments of Entrepreneurial mindset
1.2.1 Overview of mindset
A mindset is the sum of your knowledge, including beliefs and thoughts about the world and
yourself in it. It is your filter for information you get in and put out. So it determines how you
receive and react to information. Mindset can be fixed or growth oriented.
While a fixed mindset assumes your talents and abilities are set, the growth mindset believes
your talents and abilities can be developed. It is pointed out that a mindset can change. Much of
this occurs through developing a greater awareness of your current mindset, and taking steps to
purposely start thinking and reacting in new ways.

Our current mindset guides the collection and interpretation of new information. To the extent
that this new information is consistent with the current mindset, it reinforces that mindset. From
time to time, however, new information appears that is truly novel and inconsistent with the
existing mindset.

1.2.2 Entrepreneurial mindset

An entrepreneurial mindset is a set of beliefs, thought processes, and ways of viewing the world
that drives entrepreneurial behavior. Typically, entrepreneurs firmly believe it’s possible to
improve their life situation and live life on their own terms. They also believe in their ability to
learn, grow, adapt, and succeed.

The mindset of successful entrepreneurs is different from mindset of traditional workers in many
ways. For example, if a traditional worker needs to earn more money they’ll often brush up their
resume and look for a better paid job. However, someone with an entrepreneurial mindset would
look for ways to earn money by starting or growing a business

A positive mindset helps motivate entrepreneurs to focus on desired activities and events and the
results they hope to achieve. The characteristics of the entrepreneurial mindset which are
common for all entrepreneurs are:
1. They passionately seek new opportunities.
2. They pursue opportunities with enormous discipline.
3. They pursue only the very best opportunities and avoid exhausting themselves and their
organizations by chasing after every option.
4. They focus on execution specifically, adaptive execution.
5. They engage the energies of everyone in their domain.

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1.2.3 The importance of an entrepreneurial mindset
The power of an entrepreneurial mindset is obvious when you think about it. Entrepreneurs
succeed like they do because they think, act, and view the world differently from most people
There are so many reasons why an entrepreneurial mindset matters.
The factors that help entrepreneurs to develop a positive mindset include:
• Focus on opportunities to learn from each experience.
• Being involved in positive activities.
• Choose work objectives that are achievable and have an impact.
• Make friends with other entrepreneurs.
• Acquire the thinking, mannerisms, and characteristics of successful entrepreneurs.
• Have successful entrepreneurs serve as role models and mentors.
• Avoid negative thoughts and ideas.
• Take advantage of opportunities to improve your situation, whether it is your personal
life, work life or life in the community.
Successful entrepreneurs need to develop a positive mindset and observe their environment. In
order to do this, the process described below in sequential order should be followed;
1. Attention (focus on something)
2. Retention (what observed must be retained)
3. Reproduction (behavior must be practiced again and again)
4. Motivation (learner must be motivated to learn from it)
1.2.4 Distinguishing characteristics of entrepreneurial mindset
Some of the characteristics entrepreneurial mindset include being: independent, responsible,
abundant (make more money and create new opportunity), goal-oriented, not afraid of failure,
growth-oriented, feedback-seeking, collaborative, problem-solving, etc. Developing Positive
mindset towards work is important for organizational efficiency and developing effective work
habit (Culture).
Effective work habits are also beneficial because they eliminate a major stress or the feeling of
having very little or no control over your life. Being in control also leads to a relaxed, confident
approach to work. In order to develop effective work habits and became more productive person,
things that should be considered include
1. Overcoming procrastination
2. Developing attitudes and values that foster productivity.
3. Developing skills and techniques that lead to personal productivity.
4. Overcoming time wasters.

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Of all the above factors, overcoming procrastination is the most important. So it is discussed as
follows:
Overcoming procrastination
The leading cause of poor productivity and career self-sabotage is procrastination. It is delaying
of a task for an unacceptable or weak reason. Procrastination is also the major work habit
problem for most workers and students.
People procrastinate for many different reasons. The common ones are
1. Thinking that the task to be done (such as quitting a job) is unpleasant.
2. Another reason we procrastinate is that we find the job facing us to be difficult
3. A fear of the consequences of our actions
4. Negative evaluation of your work
5. The fear of success
6. A way of rebelling against being controlled
7. To achieve the stimulation and excitement that stems from rushing to meet a deadline
Techniques for reducing procrastination
To overcome or at least minimize procrastination, we recommend a number of specific tactics.
1. Calculate the cost of procrastination. You can reduce procrastination by calculating its cost.
2. Counterattack. Forcing yourself to do something difficult, frightening, or uncomfortable helps
you to prove that the task was not as bad as initially perceived.
3. Jump-start yourself. You can often get momentum going on a project by giving yourself a
tiny assignment simply to get started.
4. Peck away from overburden task. A good way of minimizing procrastination is doing a task
bit by bit, by breaking down to manageable size and minimizing burden.
5. Motivate yourself with rewards and punishments. Give yourself a pleasant reward soon after
you accomplish a task about which you would ordinarily procrastinate.
6. Follow the WIFO principle. This principle recommends that you use the technique of worst
in, first out (WIFO) for dealing with unpleasant tasks you would prefer to avoid.
Self-check questions
a. Determining positive and negative mind set (10 minute)
1. Do you have a positive or negative mindset? Why?
2. Have you changed your mindset through time or not? If your answer is yes, how? If your answer
is no, why?
3. Discuss to your classmates how you can develop a positive mindset?
b. Fill in the blank spaces with the most appropriate answers
1. ____________is delaying of a task for an unacceptable or weak reason.
2. Developing an entrepreneurial mindset can help to reduce _______, ______, and ________
it can also help to drive ______, ______, and ________.
3. Things that should be considered in order to develop effective work habits are:
____________, ____________, __________ and ________.

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 Understanding Entrepreneurial Competencies &
Information Sheet 3
Environment
1.3.1 Identifying Personal Entrepreneurial competencies (PECs)
Competencies: are defined as a body of knowledge, a set of skills and a cluster of traits.
Knowledge: consists of a set or body of information stored, which may be recalled at an
appropriate time.

Skill: is the ability to apply knowledge.

Trait: is the total of peculiar qualities or characteristics that constitutes personal individuality.

Entrepreneurial competencies: refer to the key characteristics that should be possessed by

successful entrepreneurs in order to perform entrepreneurial functions effectively.

Levels of competencies required by entrepreneurs

There are three levels of competencies, which all entrepreneurs need:

1. Personal competencies: creativity, determination, integrity, persistence, emotional
balance and self-criticism.
2. Interpersonal competencies: communication, engagement, delegation, respect.
3. Business competencies: business vision, resource management, networking, negotiating
skills.
1.3.2 Understanding Entrepreneurship and Environment
Business environment refers to the factors external to a business enterprise which influence its
operations and determine its effectiveness. Business environment may be healthy or unhealthy.
 Healthy business environment means the conditions are favorable to the growth of
business.
 Unhealthy environment implies conditions hostile or unfavorable to business operations.

Business and its environment interact with each other. Economic system and other conditions in
the environment determine the success of business enterprises.

Therefore, business enterprises and their management have to adjust to the conditions prevalent
around them.

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Classification of Business Environment
Business environment may be classified into two categories: external; and internal environment
i. External Environment. It is the environment which is external to the business and hard to
influence independently. The following are the components of external environment:
1. Economic Environment
Economic environment is of multidimensional in nature. It consists of:
 the structure of the economy,
 the industrial, agricultural, trade and transport policies of the country,
 the growth and pattern of national income and its distribution,
 the conditions prevailing in industrial, agricultural and other sectors,
 the position relating to balance of trade and balance of payments, and
 other miscellaneous conditions of the economy.
2. Legal Environment
Business must function within the framework of legal structure. Therefore, adequate knowledge
of laws and rules is necessary for efficient managerial performance. There are several business
laws (such as law of contract, law of sales, law of agency, law of bankruptcy, law of negotiable
instruments etc.) in our country. A working knowledge of these laws is very helpful for the
entrepreneur. Such knowledge will keep them away from legal liability.
3. Political Environment
Businessmen should learn to take public opinion into account in the decision-making process
because today's public opinion becomes tomorrow's legislation. Therefore, managers and
entrepreneurs should understand the working of the political system in order to discharge their
responsibilities to the satisfaction of the public.
4. Socio-Cultural Environment
It consist the social and cultural norms/customs of a society in a given period of time. The level
of rigidity/flexibility of a given society towards a new Product/service/concept depends on the
socio-cultural practices of that particular society such as values, beliefs, norms, fashions and fads
(trends). It is important to protect traditional culture as long as it is not a hindrance to
innovation, motivation, and development.
5. Demographic Environment
It assesses the overall population pattern of a given geographical region.
It includes variables like age profile, distribution, sex, education profile, income distribution etc.
The demographic assessment can help in identifying the size of target customers.

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ii. Internal Environment. Internal environment is the environment which is under the control of
a given organization.
Following are the components of internal environment of a business:
1. Raw Material: It assesses the availability of raw material now and in the near future.
2. Production/Operation: It assesses the availability of various machineries, equipment,
tools and techniques that would be required for production/operation.
3. Finance: It assesses the total requirements of finance in terms start-up expenses, fixed
expenses and running expenses. It also indicates the sources of finance that can be
approached for funding.
4. Human Resource: It assesses the kind of human resources required and its demand and
supply in the market. This further helps in estimating the cost and level of competition in
hiring and retaining the human resources.
Identifying Environmental Factors Affecting Entrepreneurship
A complex and varying combination of financial, institutional, cultural and personality factors
determines the nature and degree of entrepreneurial activity at any time.
The following are some of the environmental factors which hinder/delay entrepreneurial growth:
• Sudden changes in Government policy.
• Outbreak of war or regional conflicts.
• Political instability or hostile Government attitude towards industry.
• Excessive red-tapism and corruption among Government agencies.
• Ideological and social conflicts.
• Unreliable supply of power, materials, finance, labor and other inputs.
• Rise in the cost of inputs.
• Unfavorable market fluctuations.
• Non-cooperative attitude of banks and financial institutions.
Self-check questions
Part I: fill the following spaces with the most appropriate answers.
1. ___________are defined as a body of knowledge, a set of skills and a cluster of traits
2. The key characteristics that should be possessed by successful entrepreneurs in order to
perform entrepreneurial functions effectively are known as _______________.
3. The power cluster includes _________________and _________________Personal
Entrepreneurial Competency
4. ______________refers to the factors external to a business enterprise, which influence its
operations and determine its effectiveness.
5. What are the components of external business environment?
6. What are the components of iinternal business environment?
Part II: discuss the following in brief
1. What is Opportunity seeking and initiative
2. What is Goal setting
3. What is Entrepreneurial potential

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Information Sheet - 4 Entrepreneurial motivation and Decision
1.4.1 Entrepreneurial Motivation
Generally, motivation is the set of forces that cause people to do something. It is an inner state
that energizes and directs behavior toward goals.

Motivating Factors:
Internal Factors:
Among many internal factors motivating entrepreneurs;
1. Desire to do something new.
2. Become independent.
3. Achieve what one wants to have in life.
4. Be recognized for one’s contribution.
5. One’s educational background.
6. One’s occupational background and experience in the relevant field.

External Factors:
1. Government assistance and support.
2. Availability of labor and raw material.
3. Encouragement from big business houses.
4. Promising demand for the product

1.4.2 Entrepreneurial Decision -Making Process

The most common decision-making processes include:
1. Recognize the problem/the gap
2. Analyze the problem
3. Define possible solutions
4. Analyze all possible solutions
5. Select the best solution for the application
6. Implement the decision
Self-Check Questions
Part I: fill the following spaces with the most appropriate answers
1. ______________ is the set of forces that cause people to do something
2. The two types of factors that motivate entrepreneurs to start enterprises are
________________and ____________________.
3. What are the most important decision making process that an entrepreneurs follow during
decision making

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 Learning Element Two

2. Business Ideas, opportunities and feasibility study

2.1.1. Definition of business ideas
A good business idea is essential for starting a successful venture and to stay ahead of
competition in the market. Finding a good business idea is the first step in transforming the
entrepreneur’s desire and creativity into a business opportunity.
2.1.2. Generating and Screening business ideas
Sources of Business Idea
The followings are some of the sources from which business ideas are generated
 Mass Media (newspapers, magazines, TV, Internet)
 Hobbies/Personal Interest  Natural scarcities and pollution
 Personal Skills and Experience  Changes in Society
 Business Exhibitions  Brainstorming
 Surveys  Being Creative
 Customer Complaints
Steps in generating and screening the best viable business idea
Out of the business ideas generated through brainstorming, the best business idea can be screen
out using the following steps:
Step 1: Brain Storming Step 2: Macro Screening
Step 3: Micro Screening Step 4: SWOT analysis

Figure 3. Steps of generating and screening business ideas

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Step 1: Brain Storming. Brainstorming is a creative idea generation and problem solving
technique. This technique provides free environment to present individual ideas, without
attracting criticism from any one. Every generated idea is recorded and considered as solution to
a problem.
Step 2: Macro screening. In this step, the viability of the business idea is checked according to
the following criteria:
1. Marketability
2. Availability of raw materials &other inputs
3. Ease of implementation
4. Financial ability of the entrepreneur
5. Consistency with government priorities
Step 3: Micro Screening. In this step, the viability of the business idea is checked according to
the following criteria:
1. Marketing Viability
2. Technical Viability
3. Organizational and Management Viability
4. Financial Viability
5. Environmental Viability
6. Ecological Viability
Step 4: SWOT Analysis. A SWOT analysis is a simple tool to help you work out the internal
and external factors affecting your business.
“S” stands for strengths,
“W” stands for weaknesses,
“O” stands for opportunities, and
“T” stands for threats.
It is one of the most commonly used business analysis and decision-making tools. A SWOT
analysis helps you to:
 build on strengths (S),

 minimize weakness (W),

 seize opportunities (O), and

 counteract threats (T).

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In order to get the most out of a SWOT analysis, you need to conduct it with a particular
business objective in mind. For example, a SWOT analysis can help you decide if you should
introduce a new product or service or change your processes.
Reasons for generating business ideas
There are many reasons why entrepreneurs or would-be entrepreneurs need to generate business
ideas. Here are just a few:
 You need a great idea to start a new business
 Business ideas need to respond to market needs
 Business ideas need to respond to changing consumer wants and needs
 Business ideas help entrepreneurs to stay ahead of the competition.
 Business ideas are needed to exploit technology and do things better
 Business ideas are needed because the life cycles of products are limited.
 Business ideas help to ensure that businesses operate effectively and efficiently.
 Business ideas help to solve natural resource scarcity, pollution and depletion.

Self-check questions
Part 1: Short answer questions
1. What is a business idea?
2. What are the steps to screen out the best business idea?
3. What is brainstorming?
Part II. Say True or False for the following statements
1. All business ideas are viable.
2. SWOT analysis is one of the steps to screen out a viable business idea.
3. Ease of implementation is one of the factors considered in macro screening stage

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Information Sheet - 2 Business opportunities
2.2.1 Understanding Business Opportunity
A business opportunity is an attractive investment idea or proposition that provides the
possibility of a return for the person taking the risk. Such opportunities are represented by
customer requirements and lead to the provision of a product or service which creates or adds
value for its buyer or end-user.
2.2.2 Identifying and Assessing Business Opportunities
Ideas and opportunities need to be screened and assessed for viability once they have
been identified or generated. Identifying and assessing business opportunities involves
determining risks and rewards/returns reflecting the following factors: Market, Length of
the “window of opportunity”, Personal goals and competencies of the entrepreneur,
Management team, Competition, Capital, technology and other resource requirements,
and Environment.
The above factors are elaborated below:
Market.
Is there a market for the idea?
Are there any customers’ people with money who are able and willing to buy the product
or service?
Can you provide what they need or want?
How many are there?
Length of the ‘window of opportunity’.
Can you create or seize the opportunity until its full utilization?
Personal goals and competencies of the entrepreneur.
Do you really want to venture into the business?
Do you have what it takes? Are you motivated enough?
Management team.
Who else will be involved with you in the business?
Do they have the experience, know-how, contacts or other desirable attributes required?
Competition. Who are your competitors?
Do you have something customers want that your competitors do not have?
For example, can you produce or market at lower costs?

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Capital, technology and other resource requirements.
How much capital, technology or other resources are required?
Do you already have them or could you get them?
Environment.
Are the political, economic, geographical, legal, and regulatory contexts favorable?
Will the business do any damage to the physical environment?
Responses to the above questions will determine the attractiveness of any business
opportunity.
Self-check questions
1. What is a business opportunity?
2. What is the difference between a business idea and a business opportunity?
3. What are the factors to identify business opportunities?

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Information Sheet - 3 Feasibility study/analysis

2.3.1 Meaning of a feasibility study/analysis

Feasibility study/analysis is the process of determining if a business idea is viable. As a
preliminary evaluation of a business idea, a feasibility analysis is completed to determining if an
idea is worth pursuing and to screen ideas before spending resources on them.
Benefits of a feasibility study/analysis
The followings are the major benefits of any feasibility study/analysis
 It enables to identify problems that may encounter the business and their solutions;
 It enables someone to develop marketing strategies to convince a bank or investor that
your business is worth considering as an investment;
 It serves as a solid foundation for developing a business plan
 It enables someone to know what customers want, test a product's usability and the
quality of the user's experience
2.3.2 Components of a feasibility study/analysis
The components of a feasibility study/analysis include all the things that should be considered in
conducting a feasibility study/analysis. These are:
1. Description of the Business
2. Market Feasibility study
3. Technical Feasibility study
4. Financial Feasibility study
5. Organizational and production feasibility study
6. Management and personnel Feasibility study
2.3.3 Steps for conducting feasibility study...
The basic steps that apply to all feasibility studies are the followings:
Step 1: Assessment Stage
Step 2: Analysis Stage
 Conducting Market Research
 Performing Organizational and Technical Analysis
 Performing Financial Analysis
Step 3: Interpretation Stage
 Completing the Feasibility Study

Self-check questions
1. What is a feasibility study?
2. What are the common components of a feasibility study?
3. Discuss the main reasons why an entrepreneur will make a feasibility study/analysis.
4. What are the steps in conducting a feasibility study
Learning Element Three

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 Learning outcome - 3 Starting an Enterprise

3.1.1 Definition of Enterprise and Enterprising

An enterprise is a business-oriented organization formed specifically so founders can pursue
entrepreneurial endeavors for a profit.
3.1.2 Concept of enterprising
By understanding the enterprising concept, one can appreciate that all people have the potential
to be enterprising. Enterprising men and women are able to deal positively with the challenges
and problems they face in their daily lives.
Practically all undertakings can be referred to as enterprising it fulfills the followings.
 Idea identification,
 Planning,
 Implementation,
 Successful completion of an activity and
 Receiving the rewards
Classification of Enterprise /Types of Business
The ownership of a business organization may take different legal forms such as Sole
Proprietorship, Partnership, Joint stock Company (Corporation) and cooperatives.
1. Based on the nature and function of Business of operation
i. Service giving enterprise: - Business enterprises that render service to customers.
ii. Merchandise enterprise: - an enterprise that purchases goods for resale in normal operation
of the businesses.
iii. Manufacturing enterprise: - is purchases raw materials and different components and
convert it into end products.
2. Based on the size/scale of the operation
i. Micro enterprise
ii. Small enterprise
iv. Medium enterprise
v. Large enterprise
3. Based on the nature of ownership
i. Sole proprietorship
ii. Partnership
iii. Joint stock company (Share Company)-Corporation
iv. Cooperatives
3.1.3 Legal forms of business enterprises

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The enterpreneur has to be sure of the administrative and legal issues involved in the business
project which is going to be selected. These includes,choice of the form of the business
ownership, registration and clearness and approval from the authorities.
Types of business ownership in Ethiopia
The concepts and legal forms of business enterprises in Ethiopia/ need contextualized example.
Every small business must select a legal form of ownership. The most common forms are sole
proprietorship, partnership, corporation and cooperatives.
A. The sole proprietorship is a business that is owned and operated by one person. The enterprise
has no existence apart from its owner.
Advantage and Disadvantage of Sole proprietorship

Advantage Disadvantage
Simplicity: it is very easy to establish and Unlimited liability, Limited skills
dissolve the business., Quick decision
No separation of tax return Potential difficulty in borrowing money
High secrecy, Low costs to start, Minimum Lack of continuity/uncertain life: The business is
regulations, Low working capital terminated upon the death or incapacity of the owner.
requirement
Direct control of business/ personal touch: Difficulty in raising capital/limited financial sources
the owner can maintain personal contact
with his employees & clients.
Tax advantages, Owner receives all profits/ The sole proprietor is responsible for all decisions
direct motivation, Flexibility
B. A partnership has two or more co-owners.
Advantages and disadvantages of partnership

Advantage Disadventage

Easy to form , Low costs to start, Larger/added Unlimited liability, Lack of continuity, Lack
capital sources of harmony

Business secrecy as compare to corporation

Difficulty in finding suitable partners
business type

Protection of minority interest: each partner has

Risk of implied agency, Shared authority,
an equal role in management of firm’s affair. ,
Non-transferability of interest
Shared management/specialization

Tax advantages as compare to corporation Difficulty in raising additional capital/limited

business type financial sources
C. A limited company is an association of stockholders or owners chartered by the government.
It has the authority to transact business in same manner as one person.

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Advantage and Disadvantage of Share Company
Advantages Disadvantages
Limited liability, Management can specialize, Closely regulated by state, Most expensive
Transferable of ownership form to organize (cost, time and paperwork)
Easier to raise capita, Separation of ownership
Double taxation (company and stockholders)
and management
Continuous existence/perpetuity, Separate legal Red-tape , Charter restrictions, Extensive
entity, Potential tax advantages record keeping required
.D. A cooperative is a group of people operating a business through a jointly owned and
democratically run organization.
Advantage and Disadvantage of Cooperative
Advantages Disadvantages
Means to empower poor women, disabled Hard to keep qualified members, Members
persons and other groups who often lack a voice contributing to cooperative unequally
Joint self-help, Organizational structure helps Shared authority, Gender issues, Governance
all members challenges
Shared risk-taking, Easier to raise capital,
Combines individual skills

Self-check questions
1. What is enterprise and where do we find it?
2. How do you start and organize an enterprise?
3. Discuss the various enterprises in the local business community.
4. What are Micro and Small Enterprises Important to the Economy?
5. How many legal forms of business do you know in your locality?
6. Observe your environment and identify five business organizations for legal forms discussed
above. (Group work)

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 Information sheet - 2 Micro and Small Enterprises in Ethiopia
3.2.1 Facts of Micro and Small Enterprises in Ethiopia
Small and medium enterprises (MSEs) cover a wider spectrum of industries and play an
important role in both developed and developing economies. Ethiopia is no exception and MSEs
occupy a prominent position in the development of the Ethiopian economy. MSEs are the
natural home of Entrepreneurship. The sector is also an important force to stimulate economic
development by:
 Generate employment , Equitable income distribution , Activate competition
 Exploit niche markets , Enhance productivity and technical change

The government’s recent industrial development strategy identifies MSEs as key priority
No single definition for MSEs. The definitions vary from country to country and mainly depend
on its purposes. Enterprises in the MSE sector are defined both in terms of paid up capital (asset)
and number of employees. For example
Proposed classification of enterprises based on size in Ethiopia
Size Based Classifications of Enterprises
Level of No. of Total Asset in Total Asset in
Economic Sector
Enterprise Employees ETB USD
Industry < 10 employees < 250,000 <7,500
Micro Service &
< 10 employees < 200,000 < 6,000
Agriculture
11 – 50 250,001 – 4 7,500 –
Industry
employees Million 115,000
Small
Service & 11 – 50 200,001 – 2.5
6,000 – 75,000
Agriculture employees Million
51- 100 4,000,001 - 45 115,000 – 1.5
Industry
employees Million Million
Medium
Service & 51- 100 3,000,001 - 25 75,000 –
Agriculture employees Million 750,000
Industry >100 employees >50 Million > 1.5 million
Large Service &
>100 employees >25 Million > 750,000
Agriculture

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3.2.2. Factors for the Success and Failure of Small Businesses

i) Factors that support the success of small business

 Special contribution of Small Businesses
 As part of the business community, small firms unquestionably contribute to our nation’s
economic welfare.
 They produce substantial portion of our total goods and services.
 Thus, their general economic contribution is similar to that of big business
 Their special contribution include the following:
 Providing new jobs,Introducing innovation, Stimulating economic competition
 Aiding big business, Producing goods and services efficiently

ii) Small Business Failure Factors

1) Incompetence - The owners simply do not know how to run the enterprise
2) Unbalanced experience - This means owners do not have well-rounded experience in the
major activities of the business, such as finance, purchasing, selling, and production
3) Lack of managerial experience - The owners simply do not know how to manage people.
4) Lack of experience in the business line (field) - The owner has entered a business field in
which he/she has very little knowledge
5) Others such as neglect, fraud, and disaster, (mischance, Bad luck, tragedy, accident

3.2.3 Economic social & political contributions of small business enterprise

Small and medium enterprises (SMEs) cover a wider spectrum of industries and play an
important role in both developed and developing economies. Ethiopia is no exception and SMEs
occupy a prominent position in the development of the Ethiopian economy.
Over the years, the number of SMEs is growing form time to time. They need a strong support
on Scio- economic and political ground. Some of the contributions are hereunder.
 Equitable distribution of wealth and decentralization of economic power
 More Employment creation capacity
 Removing Regional Imbalance
 Ancillary Function - (supply parts and accessories to bigger enterprises)
 Export Promotion

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3.2.4 Key success factors in setting up a micro and small enterprises
It can be expressed in terms of the “MAIR” Model
i) Motivation and Determination
ii) Ability
iii) Idea and Market
iv) Resources
v) Business plan
vi) Organization and Management

Activity 3.2 (Group work)

Group work and presentation: How to operate an enterprise.
1. Explain the Special contribution of Small enterprise?
2. Have learners conduct a survey of business located in their community. Divide the class into
groups of 3 to 5 trainees. Divide the community into geographical sections so that each
group will have a Specific area of the business to survey and there will be no overlap. Have
each group identify 10 businesses in their specific area of the business Community. The
groups should interview 2 or 3 business owners using the questions to get an idea of what
type of activities the Business owners are engaged in
Make a group, Have the class analyze the 10 sample enterprises they have identified according to the
classifications in enterprise. (Each example can be placed in more than one form of classification).
Discuss each forms of classification of business in different bases.
3. Describe the potential success factors to establish small businesses.

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 Information sheet - 3 Establishing an enterprise
3.3.1 Buying an Existing Business versus Starting a New Business
1. Buying an existing business
If someone has never owned a business, buying and operating an existing business offers
many advantages such as established customers and business procedures, trained
employees, inventory and premises which are in place and a business which already has a name
in the market.
Advantage and Disadvantage of Buying an Existing Business
Advantages Disadvantages

Less risk legality Product or service may be in a declining market

Significant personal freedom Limited growth potential
Cash flow already being generated Debts or stock may be too high
Relationships have been established with
Merchandise may be obsolete
suppliers and banks

An established service or product, with

Seller may have hidden reasons for selling: the
customers, a method of operation, staff
business may have been declining for years
and a name

The business may have a bad reputation in the

Location may be excellent
neighbor hood. Location may be poor
2. Starting a new business
Most people who want to be entrepreneurs think that the best approach is to start their own new
business and not to buy one that already exists. This approach gives satisfaction to the owner. It
is also taking a relatively high risk compared to buying an established business.
Starting a new business means allocating a great deal of time to planning and
investigating the potential market for the products or services to be sold by the new business.
Advantage and Disadvantage of Starting a New Business
Advantage Disadvantage
Independence. As a business owner, you are Financial risk. The business may face financial
your own boss. difficulties.
Lifestyle. Because you are in charge, you Stress, due to competition, performance, bills,
decide when and where you want to work. equipment breakdowns, customer problems, etc.
Financial rewards. It is making profit. Time commitment. Working for long hours.
Learning opportunities. As a business owner, Performing undesirable duties.
you interact with stakeholders.

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 Freedom and personal satisfaction. Facing uncertainties and risk.
3. Becoming a franchisee
Franchising is a system where a franchiser has developed and implemented a business that he/
she offers for replication to a franchisee. The franchisee opens a business by using the business
idea of the franchiser against a fee. In return, the franchisee gets training, the marketing concept,
the brand name and the product or service. He also has the guarantee that no other franchisee
from the same franchiser will have the right to do business in the same area.
Advantage and Disadvantage of Becoming a franchisee
Advantages Disadvantages
Lower risk for the start-up Less entrepreneurial decision-making power
Start-up investment cost well known Franchising fees would decrease profits

Good market introduction of the product or No possibility of introducing a new product from
service other suppliers

Proven marketing concept Strong dependency on the franchiser

Training assured by the franchiser If the franchiser’s business loses the market, your
business loses the market
3.3.2. Using an economic/Control definition/ Qualitative Approach
Size does not always reflect the true nature of an enterprise. In addition, qualitative
characteristics may be used to differentiate small business from other business. The
economic/control definition covers: market share, independence, personalized management,
technology and area of operations.
 Market share: The characteristic of a small firm’s share is not large enough to enable it
to influence the prices of national quantities of goods sold to any significant extent.
 Independence: The owner has control of the business himself/ herself. It, therefore, rules
out those small subsidiaries which though in many ways fairly autonomous, nevertheless
have to refer to major decisions (e.g., on capital investment) to a higher level of authority,
 Personalized Management: It implies that the owner actively participates in all aspects
of the management of the business, and in all major decision-making process.
 Geographical area of operation: The area of operation of a small firm is often local.
Generally, small business is a business that is privately owned and operated, with a small number
of employees and relatively low volume of sales.
Self-check questions
1. Visit a nearby business of any kind. Ask the business owner or manager of business about the way how
established that business and what the problem they faced. Then reflect their answer to the class.

30
2. There are different ways of establishments of business activities .which way is preferable to an
entrepreneurs? Why?
Information sheet - 4 Basic Concepts of Marketing

3.4.1. Definition of marketing

The following are some of the important definitions of marketing by Philip Kotler and et.al
Marketing is too often confused with selling. Today, marketing must be understood not in the old
sense of making a sale—“telling and selling”—but in the new sense of satisfying customer
needs. “Selling is the art of finding clever ways to dispose of what you make.
It focuses on creating sales transactions rather than on building long-term, profitable customer
relationships.
Generally Marketing answers the following questions:
1. Who are your customers?
2. What are my customer’s needs and wants?

How can I satisfy my customers’?

You need to do everything to find out who your customers are and what they need and want in
order to satisfy them improve your sales and make a profit. You need to find out;
 Products/services your customers want.
 Price your customers are willing to pay.
 Location of your business in-order to reach your customers (Place)
 Promotion to use to inform your customers and attract them to buy your products or
services
3. Understanding the Market place and Customer Needs - Marketing is all about creating
value for customers. Marketers need to understand customer needs and wants and the
marketplace in which they operate.
We examine five core customer and marketplace concepts:
i) needs, wants, and demands;
ii) market offerings (products, services, and experiences);
iii) value and satisfaction;
iv) exchanges and relationships; and
v) markets.

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i) Customer Needs, Wants, and Demands
Need: Human needs are states of felt deprivation (lack or scarcity). They include basic physical
needs for food, clothing, warmth, and safety; social needs for belonging and affection; and
individual needs for knowledge and self-expression. Marketers did not create these needs; they
are a basic part of the human makeup.
Wants: wants are the form human needs take as they are shaped by culture and individual
personality. Example a person in Ethiopia needs food but wants Burger. Wants are shaped by
one’s society and are described in terms of objects that will satisfy those needs.
Demand: when backed by buying power, wants become demands. Given their wants and
resources, people demand products and services with benefits that add up to the most value and
satisfaction. Outstanding marketing companies go to great lengths to learn about and understand
their customers’ needs, wants, and demands.
They conduct consumer research, analyze mounts of customer data, and observe customers as
they shop and interact, offline and online. People at all levels of the company—including top
management—stay close to customers.
ii) Market Offerings—Products, Services, and Experiences. Consumers’ needs and wants are
fulfilled through market offerings—some combination of products, services, information, or
experiences offered to a market to satisfy a need or a want.
iii) Customer Value and Satisfaction. “Always give the customer quality, value, selection, and
service”( Fred G. Meyer). In terms of marketing, the product or offering will be successful if it
delivers value and satisfaction to the target buyer.
iv) Exchanges and Relationships. Exchange is the act of obtaining a desired object from
someone by offering something in return. Marketing consists of actions taken to create, maintain,
and grow desirable exchange relationships with target audiences involving a product, service,
idea, or other object.
v) Markets. A market is the set of actual and potential buyers of a product or service. These
buyers share a particular need or want that can be satisfied through exchange relationships.
3.4.2. Importance of Marketing
Marketing plays a major role in achieving organization goal and socio-economic system of a
given country and further in the global economy. Since marketing is consumer oriented, it has a

32
positive impact on the business firms. It enables the entrepreneurs to improve the quality of their
goods and services.
The advantages of the channel system can be summarized by describing the utilities that
channels create:
1. Possession utility - Possession utility is created when a customer buys the product. That is,
ownership is transferred to the buyer.
2. Time utility - Time utility refers to having a product available when you want it.
3. Place utility - Place utility exists when a product is readily accessible to potential customers.
4. Information utility - Information utility is created by informing prospective buyers that a
product exists.
5. Form utility - Form utility is associated primarily with production – the physical or chemical
changes that makes a product more valuable.
3.4.3. Sales and customer service
Customer Service: customer service means providing a quality product or service that satisfies
the needs/wants of a customer and keeps them coming back. Good customer service means much
more – it means continued success, increased profits, higher job satisfaction, improved company
or organization morale, better teamwork, and market expansion of services/products.
Customer Service Qualities:
Customer Service = Accountability + Delivery
Good customer service means accountability, responsibility and taking action to satisfy the
customer. If your customer is unsatisfied (for just or unjust reasons), you will have to use some
of the techniques of the customer service professional to win their support and continued loyalty.
Helpful Reminders for Polite and Friendly Responses to your customers
Wrong Approach Polite and Friendly Alternative
“I don’t know.” “I’ll find out.”
“No.” “What I can do for you…”
“That’s not my job.” “Let me find the right person who can help you with …”
“You’re right – this is bad.” “I understand your frustrations.”
“That’s not my fault.” “Let’s see what we can do about this.”
“You want it by when?” “I’ll try my best.”
“Calm down.” “I’m sorry.”
“I’m busy right now.” “I’ll be with you in just a moment.”
“Call me back.” “I will call you back, what is your telephone number.”

33
 You Need to Talk to My Supervisor “Let me find that out for you.”

 Activity:
Think about where you enjoy doing business as a customer - stores, suppliers, banks, café and
restaurants, beauty salon, hotels and let’s review a business you like and dislike, why? Briefly
explain in terms of customer service

Sales. Selling is important enough to be considered as a function of marketing in its own right,
even though it is not included separately as one of the ‘Four Ps’ of the marketing mix. Selling
contributes to the overall effectiveness of the marketing effort; however, it also has a more
fundamental role to play, in that the act of selling is the end result of all marketing activity.
Marketing vs. Sales
Marketing Selling
It focus on customer needs It focus on sellers need

Customer enjoys supreme importance Product enjoys supreme importance

Converting customer’s needs into product. Converting product into cash.

Profits through customer satisfaction Profits through sales volume.

Emphasis is given on product planning and Emphasis is placed on sale of products already
development to match products with the market produced

Integrated approach to marketing is practiced. Fragmented approach to selling is practiced.

The principle of caveat vendor (let the seller The principle of caveat emptor (let the buyer
beware) is followed. beware) is followed.

General Skills Every Salesperson Should Have;

 Listening skills
 Problem-solving skills
 Interpersonal
 Organization skills
 Self-motivation skills
 Persuasion (convincing) skills
 Customer service skills
 Integrity

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 3.4.4. Marketing Mix
Marketers use numerous tools to elicit the desired responses from their target markets. These
tools are classified into four broad groups that are called the four Ps of marketing: product, price,
place, and promotion as stated by Philip Kotler.
1. Product. The true nature of the product is always what the consumer perceives it to be, and
not what the company thinks it is or would like it to be.
2. Pricing. It has a direct impact on the customer, the company and the economy. To the
consumer, price is an important factor in the decision-making process.
3. Place. Place means the different ways of getting your products or services to your customers. Place
refers to having the right product, in the right location, at the right time to be purchased by consumers.
It is also referred to as distribution.
4. Promotion. The purpose of promotion is to create and stimulate demand. Promotion means
informing or communicating your customers about your products and services and attracting
them to buy the given product /service. Promotion includes advertising, sales promotion,
publicity, personal selling, direct and internet marketing
3.4.5. Selecting suitable market
Marketing analysis is the dynamic process of analyzing and comparing the appropriateness or
otherwise of alternative market with the aim of selecting the best market for a given enterprise.
It consists of the following:
a. Trade area analysis: It is an analysis of geographic area that provides continued customer
to the firm. Convenience and accessibility to the trade area from alterative site, needed to be
analyzed.
b. Demographic Analysis: It involves study of population in the area in terms of total
population, age composition, perception income, education level, occupation structure, etc.
c. Competitive Analysis: It helps to judge the nature, location, size and quality of competition
in a given area. You must study your competitors by gathering information on their
strengths and weaknesses.
d. Traffic Analysis: The relative desirability of alternative sites can also be judged in terms of
pedestrian and vehicular traffic passing a site. It will give an idea about the number of
potential customers passing by the proposed site during the work hours of the shop.
e. Economics: A major concern in choosing a community in which to initiate a small business
is the economic base of the community. Why do people live in the area? What is their
standard of living?
Self-check questions
1.List and explain the difference between Marketing and sales?
2.Discuss the Importance of marketing?
3. Briefly describe marketing mix?
4. Product is generally regarded as being the most important of the ‘Four Ps’. Why

35
 Information sheet 5 Financing an Enterprise
Introduction
The initial money required to start the business is referred to as start-up capital which consists of
initial investment capital and working capital. Investment capital refers to the fund to be spent on
the acquisition of equipment, furniture, building and other properties and working capital is the
money needed to cover the operation of the business.
3.5.1. Sources of Finance
Generally, the source of finance for a start-up is divided into sources. These are internal and
external sources.
a. Internal sources (Equity financing). The main sources of equity financing includes personal
investment, funds obtained from family members or parents, partners, venture capital, angles
among others.
b. Debt Financing. It is a financing method involving interest payment. Debt financing requires
the entrepreneurs to pay back the amount of funds borrowed with an interest within
predetermined period of time. Debt financing is asset based financing in that it requires collateral
of fixed asset (such as car, house, plant, machine, or land).
The most common source of funding comes from commercial bank and micro finances. There
are prerequisites to get loan from financial institutions. The common requirement include the
following
 Decision on the amount and installment plan
 convincing business plan
 collateral
 appraisal by the bank
Sources of debt financing include:
Banks,
Micro finances
Trade credit
Lease financing, and
Other sources.
Self-check questions
1. Write the similarities and differences of Venture Capital and Angles Investor
2. Write similarities and difference of bank loan and loan from microfinance
3. Which do you think is the best source of finance for small business? Support your
argument with evidence (group work)

36
Information sheet - 6 Basics of Business Plan
3.6.1. Business Plan
A business plan is a written document prepared by the individual entrepreneur or partners that
describes the goals and objectives of the business along with steps necessary to achieve those
goals. A Business Plan sets objectives, defines budgets, engages partners, and anticipates
problems before they occur. The preparation of a business plan requires considerable investment
of time, effort, and energy.
3.6.2. Uses of the Business Plan?
It is a powerful sales document for raising money. A business plan is a prerequisite for talking to
a venture capitalist, and/or other investors. It serves as an operational plan to direct
entrepreneur’s operations. Generally, the business plan benefits the internal and external users
 The plan helps the enterprise to develop a “road map” to follow its strategies and plans.
 The plan introduces potential investors and other stakeholders the business opportunity the
firm is pursuing and how it plans to pursue it.
3.6.3. Contents of the business plan
A standard business plan contains the following elements.

Contents of a Standard Business Plan

1. Cover page
2. Executive summary
3. Company Description
4. Product/service
5. Market Analysis
6. Marketing Plan
7. Operation Plan
8. Management Plan
9. Financial Plan
10. Exist Strategy
11. Economic Analysis
12. Environmental Analysis
13. Risk Analysis

Elements of a Business Plan

37
The brief reference to each content of the business plan is given below
1. Cover page contains the name of the business, name of the applicant and the date .
2. Executive Summary gives an overview of the whole document in which the main contents
are summarized.
3. Company description presents organizational set up, vision, mission, objective, core values
and success factors.
4. Product/service. this part describes the type of products or service the prospective business
has to offer to the market
5. Market analysis presents the market situation including industry analysis, competition,
current and future markets trends
6. Marketing plan sets out the plan to reach target customers and get products/services sold
7. Operation Plan deals with how the work is organized and done
8. Management plan shows the human resource requirement for the planned operation and
appropriate structure is proposed.
9. Exit Strategy talks about future development plan and milestone.
10. Financial Plan projects the financial requirement to start up and run the business
11. Economic Analysis points out the economic benefits of the business to the individual
entrepreneur, the local community and the nation
12. Environmental Analysis presents the impact of the business on the ecosystem of the
environment and mitigation strategies
13. Risk Analysis project potential risks and risk management plan.

Self-check question
Personal project
Prepare mini business plan for a small business which you can operate in your locality
(Develop your personal project by using all skills you have learned in this training course with
your major competencies by using Business Model Canvass)

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BUSINESS PLAN
EXECUTIVE SUMMARY
Name of Business _________________________________________________________

Legal Form _______________________________________________________________

Contact Address _________________________________________________________

Tel. _____________________E-mail________________________

Fax.____________________

Type of Business:
􀂉 Manufacturer 􀂉 Service provider 􀂉 Retailer 􀂉 Wholesaler

Brief Description of the Business Idea

Products or services
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
Customers / Target Group
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________

Owner(s) (Name, Address, Qualification, Function in the Business, Relevant Experience)

1.________________________________________________
2.________________________________________________
3.________________________________________________
4.________________________________________________

Business Idea and Market

Description of the business idea
(e.g. identified needs (market gap), who are the customers, type of products or services to
satisfy the needs, how to reach the customers, etc.)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________

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Marketing Plan
Description of the market
(e.g. geographical area, town, type of customers, size of total market, description of competitors,
market share for the new business, etc.)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
MARKETING PLAN PRODUCT
Detailed description of the product or product range or service
Product/service type
______________________________________________________________________________
______________________________________________________________________________
__________________________________________
What is special about the product/ the unique characteristics of the product?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________
Specification of the product (e.g. size, color, quality, Packaging etc)
______________________________________________________________________________
______________________________________________________________________________
____________________________________________________________
After sales service
______________________________________________________________________________
______________________________________________________________________________
______________________________
Marketing Plan Price
How much are customers willing to pay?
 Highest _____
 Average ____
 Lowest _____

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How much are competitors’ price?
 Highest _____
 Average ____
 Lowest _____
How much is your price?
 Highest _____
 Average ____
 Lowest _____
What are the reasons for setting your price?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_______________________________________

Product/service Type(1) Type(2)

Highest ;
Average;
Lowest

Highest ; Highest ;
Average; Average;
Lowest Lowest

Highest ; Highest ;
Average; Average;
Lowest Lowest

Margin for discount? No Yes(_____ %) No Yes(____%)

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Marketing Plan Place
Location of the business
Description of the planned location for the business
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
Reason for choosing this location
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
________________________________________
Reaching the customers by selling to:
􀂉 Individuals 􀂉 Retailers 􀂉 Wholesalers 􀂉 Others
Reason for choosing this way of distribution
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
MARKETING PLAN PROMOTION
Description of the planned actions to inform customers about the opening of the new business
(e.g. printed information, brochures, posters, newspaper articles, radio advertisements, opening
ceremony, etc. Also make inquiries about the costs for the different types of promotion)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________

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Legal Form
The legal form of the business will be: -
□ Sole proprietorship □ partnership □ limited company □ Corporation
Reason for choosing this legal form
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
Start-up Capital
Estimation of Start-up Capital Amount

Investment

Land

Building

Equipment

Total Investment
Working Capital
____ months of staff costs
____ months of operational costs
Total working capital

Total Start-up Capital

List Fixed Assets Needed and Their Cost

No. Item Quantity Amount
1
2
3
4
5
Total

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List of Raw Materials Needed
Raw materials
No Dimension Quantity Unit Cost Total Cost
needed per month
1
2
3
4
Total cost

Sources of Start-up Capital

Sources of Funding
Conditions
Type Source Amount
(duration/interest)
􀂉 Own savings
Equity capital
􀂉 Partner
􀂉 Family
Loan 1 􀂉 Friends
􀂉 Money lender
􀂉 Credit cooperative
Loan 2 􀂉 Government scheme
􀂉 Bank loan
Total Funding
Information about funding sources
Loan 1
Name and address of creditor or credit institution
______________________________________________________________________________
______________________________________________________________________________
____________________________________________________________

Credit Agreement 􀂉 under discussion 􀂉 finalized

 Money available on (date) ________
Loan 2
Name and address of creditor or credit institution
______________________________________________________________________________
______________________________________________________________________________
____________________________________________________________
Credit agreement 􀂉 under discussion 􀂉 finalized
􀂉 Money available on (date) ________

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Debt Service
Repayment 1 2 3 4 5 6
period Amount Amount Amount Amount Amount Amount
Loan 1
Installment/principal
Interest
Loan 2
Installment/
principal
Interest
Debt service
Sum of Installments

Organization and Staff

Staff costs
Position Qualifications Salary Social Total
Per month security staff cost
1. __________ ___________ _________ ________ ______
2. __________ ___________ _________ ________ ______
3. __________ ___________ _________ ________ ______
4. __________ ___________ _________ ________ ______
5. __________ ___________ _________ ________ ______

Organization of Business Premises

(Sketch of planned shop, office or workshop)

Business Operation and Costs

Monthly Sales Plan
All products, product range or services
Month 1 2 3 4 5 6 7 8 9 10 11 12
Price
Product
Quantity
1
Turnover
Price
Product 2 Quantity
Turnover

All
Turnover
products
Monthly Operational Cost Plan

45
 Planning is based on the monthly sales plan
Month 1 2 3 4 5 6 7 8 9 10 11 12

Product 1 Quantity
Materials All costs
Product 2 Quantity
Materials All costs
Materials Total costs
+ Staff Total costs
+ Others Total costs
Operation Total costs
+ Capital Interest
cost Depreciation
Grand Total
=
costs

Cash Flow Plan

Monthly Cash Flow Plan
Pre
Month 1 2 3 4 5 6 7 8 9 10 11 12
operation
Cash beginning of
the month
+ Equity
+ Loans
+ Sales
+ Any other
I: Total cash in
+ Investment
+ Operational cost
+ Interest
+ Any other
II: Total cash out
I – II Cash at the
end of the month

Profit Margin
Monthly Estimation of Net Profit

46
Month 1 2 3 4 5 6 7 8 9 10 11 12
Quantity
Product 1
Turnover
Quantity
Product 2
Turnover
I. Total Sales
- Operation Total costs
II. Total Costs
I – II Profit
(before tax)
- Income tax _____%
Net profit
(after tax)
Opening Balance
Opening Balance of My Business (Date)
Assets Value Equity Value
Current Assets Liabilities
Cash and bank Current Liabilities
Accounts receivable Accounts payable
Inventory Taxes payable
Total Current Others payable
Total Current Liabilities
Fixed Assets
Long-Term Liabilities
Land
Mortgage
Building
Loans
Equipment
Others
Others
Total Long-Term Liabilities
Total Fixed Assets
Total Liabilities
Net Worth/Capital

Total Assets Total Liabilities and Net Worth

47
 Information Sheet - 1 Definition of Employability Skill (5 hour)
Learning Element Four
Learning Outcome- 4 Employability skills

4.1.1. Employability Skill

Employability skills are defined as skills required not only to gain employment, but also to
progress within an enterprise so as to achieve one’s potential and contribute successfully to
enterprise strategic directions.

The core skills are:

 Basic/foundation skills
 Vocational/technical skills
 Professional/personal skills

 Core work skills

The following table sets out the main types of skills required in today’s world of work with
corresponding definition.
Core Employability Skills and their Definition

Type of skill Definition

The literacy and numeracy skills necessary for getting work that can
pay enough to meet day-to-day needs. These skills are also a
Basic/foundation prerequisite for continuing in education and training, and for acquiring
skills other vocational, professional and core work skills that enhance the
prospect of getting a good job

Vocational or Specialized skills, knowledge or know-how needed to perform specific

technical skills duties or tasks
Professional or Individual attributes relevant to work, such as honesty, integrity, work
personal skills ethic
The abilities to learn and adapt; to read, write and compute
competently; to listen and communicate effectively; to think
creatively; to solve problems independently; to manage oneself at
Core work skills
work; to interact with co-workers; to work in teams or groups; to
handle basic technology; and to lead effectively, as well as follow
supervision

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Important core skills necessary for employability skills include the following though it is not an
exhaustive list:
 Communication skills that contribute to productive and harmonious relations between
employees and customers;
 Team work skills that contribute to productive working relationships and outcomes;
 Problem-solving skills that contribute to productive outcomes;
 Initiative and enterprise skills that contribute to innovative outcomes;
 Organizational skills :planning and organizing skills that contribute to long-term and
short-term strategic planning;
 Self-management skills that contribute to employee satisfaction and growth;
 Learning skills that contribute to ongoing improvement and expansion in employee and
company operations and outcomes; and technology skills that contribute to effective
execution of tasks.
 Numeracy skills : literacy in basic arithmetic and statistical tools
 Negotiation skill: ability to engage with others
 Valuing diversity and difference
 Digital skills (technology).
4.1.3 Personal Attributes of Job Seekers
Prospective graduates of TVET programs are expected to build the skills and confidence that
create impression in the job market. Along with basic employability skills, the following
personal, attributes are important to create attractive impression in the minds of employers.
 Loyalty  Commonsense  Ability to deal with
 Commitment  Positive self esteem pressure
 ‘honesty and integrity  Sense of humor  Motivation
 Reliability  Balanced attitude towards  adaptability
 Personal presentation work and home life
 Enthusiasm

Activity: 1
1. List some of the importance of employability skills
2. Discuss the interrelation of personal attributes and employability skills in group

49
 Information Sheet 2 Importance of Employability Skills

4.2.1. Why Employability Skills are Important?

These set of "job-readiness" skills are, in essence, behaviors that are necessary for every job and
are essential attitudes that allow you to grow in your career and also efficiently let you:
 Connect with co-workers
 Solve problems
 Be a part of and understand your role within the team
 Make responsible choices for your job and your career
 Be independent and take charge of your career
Employability Skills are further important to:
 Explore self,
 Get a return on investment, and
 Improve your opportunity for employability.

4.2.2. Elements of Employability Skills

Employers have high regard for employability skills because they are much harder to teach than
job-specific skills. Some employable qualities come naturally, while others can be acquired
through education, work or daily practice.
You may already have some of the key employment skills, but you can work to improve those
skills and develop new ones. Here are common employability skills such as: communication,
teamwork, reliability, problem-solving, organization and planning, initiative, self-
management, leadership, learning, and technology.
1. Communication. It is one of the most important employability skills because it is an essential
part of almost any job. The communication process involves five elements:
a. Sender: is the source of information. The role of a sender is encoding.
b. Message: is the central idea that is conveyed from the sender to receiver.
c. Medium or channel: is the way in which the information is conveyed. E.g. letters, telephones,
e-mail, meeting, face-to-face, etc.
d. Receiver; is the one who captures the message. The role of a receiver is decoding.
e. Feedback: is the response or reply from the receiver to sender or vice-versa.
2. Teamwork. Good teamwork skills refer to the ability to work harmoniously with your
colleagues to achieve a shared goal. Teamwork skills such as collaboration can increase your
hiring chances because you may be able to help a company reach its goals more effectively.
These skills can also contribute to a more positive work environment.

50
To become a great team player, you need to be comfortable working with people, take
responsibility for your share of work and contribute to team goals.
3. Reliability. It makes you more employable because it promotes trust between you and your
employer. You are a reliable employee if you can consistently complete your tasks on time,
deliver quality work and make minimal mistakes. You must also be able to respond to inquiries
and emails promptly and only make promises you can keep.
4. Problem-solving. Problem-solving involves identifying key issues and their implications,
having a clear understanding of problems and determining the most effective solutions. For more
complex problems, you need to know how to divide them into smaller parts that are easier to
understand and more manageable.
5. Organization and planning. Being able to organize and plan effectively is important because
it helps you and your employer save time, effort and money by improving workflow. It ensures
that assignments and projects are completed on time and prevents confusion and errors that can
be costly to the company.
6. Initiative. Taking initiative means recognizing a problem and solving it, preparing for a
potential crisis by taking preemptive action, taking advantage of opportunities and having a
positive attitude. It shows that you can think for yourself and take the necessary actions without
being instructed to do so.

7. Self-management. It refers to the ability to perform job duties satisfactorily with little or no
supervision. For higher-level employees, it also means delegating tasks to ensure you complete
them on time. Additionally, self-managed employees can motivate themselves to deliver solid
work performance consistently.

8. Leadership. Employers look for good leaders because they can benefit organizations in many
ways. As a leader, you play an important role in ensuring that your team shares the same vision
as the company and works in unison with other teams and departments to achieve a common
goal. Additionally, you can develop strategies for achieving objectives, keep your team
constantly motivated and monitor work performance to produce better results for the company.
9. Learning. Having strong learning skills means understanding new concepts and methods
quickly, taking on new tasks, adapting to change and having the tendency to improve your
knowledge and skills continually.
10. Technology. Companies search for candidates with technical skills to help them use the
latest technology and stay ahead of their competitors. Depending on your job, the technology

51
 skills you need may vary greatly, from word processing and sending email to video editing and
using programming languages.
4.3 Job Application

One of the first things an applicant will be asked to do for an interview is fill out a job
application. Employers get more information from an application than facts and numbers. They
check the neatness, spelling and grammar and organizational skills

The application is one more chance for an applicant to keep the name in the “prospective
employee” file and out of the wastebasket. As an application is a legal document. Fill it out
completely and honestly.

4.3.1. Resume

It is a short document showing an employer that an applicant is a desirable candidate for a job.
Resume is a Statement of facts (using keywords and action verbs) that highlights the
accomplishments, skills and education/training.

Contents of a Resume

The sections most commonly included in a resume are the following:

i. Heading

 Create a heading/letterhead that An applicant can use on all of the employment documents
 Tell the employer who an applicant is and how they can reach out.
 The name should stand out slightly more than the rest of identifying information. The
header should include the name, complete mailing address, and the telephone number with
area code.
 Include the cell phone number if this is the easiest way to reach you. Make sure thevoice
mail message is professionally stated.
 Include the email address and make sure it is appropriate and reflects positively on you. If
an applicant doesn’t have business email address, create one using one of the free sources
such as Gmail, yahoo, or Hotmail.

ii. Objective

 Objectives help to sharpen the focus of the resume.

 An objective should be specific, not vague and meaningless.

52
  Objectives should reflect the employer’s perspective, not the jobseekers. It should
demonstrate the value the candidate will add to the organization. It should be as concise as
possible.

iii. Strengths or Skills Summary

 This section supplements (or replaces) the objective section.

 This section spotlights the skills that an applicant need to contribute to the
position/organization.
 The keywords utilized in this section can help increase the number of hits if the potential
employer uses an electronic process to match applicants with job requirements.

iv. Education

 List the most recent education first.

 List school name, city and state, expected date of graduation or completion, and any
specific programs of

v. Study/special training

 List the employability essentials for Success that an applicant has learned.
 List related classes an applicant has taken.
 Use actual course titles not abbreviations or acronyms.

vi. Work Experience

 Show current or most recent job first.

 List job title, name of employer, city/state of employer and dates of employment. This is the
order of importance to the reader. For dates of employment, month and year is sufficient. If
an applicant are still working, state “Present” for the ending date.
 The ideal resume is accomplishments driven rather than duties driven. As a high school
student, it can be challenging to follow this format. How did an applicant does the job better
than anyone else? How did the company benefit from the performance?
vii. An applicant should have at least three accomplishments/duties for each position listed on
resume.
viii. Volunteer Experience/Community Service
 Show current or most recent volunteer experience first.

53
  List type of volunteer experience, name of organization, city/state, and time period or
number of hours volunteered.
 List responsibilities and experience gained.

ix. Activities/Awards/Special Skills

 List skills that an applicant acquired through the course work or work experience be
specific Example - Proficient in Microsoft Word 2010.
 List clubs and organizations to which an applicant belongs.
 List special awards and certificates.
References

Do not list any references on the resume. Instead key the phrase, “References available on
request” at the bottom of the page. This is optional because all employers expect that references
will be provided if requested. The line can serve the purpose of signaling the end of the resume;
but if an applicant doesn’t have room, leave it off.

 On a separate sheet of paper have the references listed so an applicant will have them
available. On this sheet, use the same heading as the resume page.
 Use three to five adult references. Include full name, title (relationship to you), organization
with which the person is affiliated, complete address, phone number and e-mail address.
 Suggestions for good references include past and present employers, volunteer work
supervisors, teachers, coaches, counselors, etc. Do not use family members or school
friends.
 Make sure the references can discuss the work-related qualities positively.
 Get permission before an applicant use anyone for a reference.
 Keep the references informed about key accomplishments and make them aware of
positions an applicant is seeking.

Homework Activity: 1
Prepare a resume of your own as part of a job application to be submitted to ABC
Company.

Cover Letter

54
Why Is A Cover Letter So Important?
The first contact with a prospective employer may be the cover letter. Employers use cover
letters to efficiently sort out those applicants they wish to interview. It is essential that the cover
letter be well written so that yours is one of those that obtain an interview.
Few employers seriously consider a resume that is not accompanied by a cover letter. Employers
may ask for cover letters to see how much effort an applicant is willing to make to get the
position. They may also want to know how well an applicant expresses himself in writing.
A cover letter has several purposes:
 A cover letter tells the employer the type of position you’re seeking.
 A cover letter tells the employer exactly how an applicant is qualified for the position.
 A cover letter highlights the aspects of the experience that are most useful to the
employer.
 A cover letter can explain things that the resume can’t.
 A cover letter can serve the same function as the “objective” on the resume, and expand
upon it.
 A cover letter is a little window in to the personality.
The cover letter is all about specifics:
1. Always address the letter to a specific person. “Dear Sir” or “To Whom It May Concern” is
unacceptable. Call the company and ask who the hiring manager is for a given position if it
isn’t stated in the job posting. The worst-case scenario is that the letter will begin “Dear
Hiring Manager for (name of position).”
2. Target the letter to a specific position and be very specific when describing the skills and
qualifications related to that position. Be sure to refer to the job posting and use key words
mentioned. Use specific examples to demonstrate the claims about yourself. If An applicant
say An applicant are organized, give an example of how An applicant have used this skill.
3. Demonstrate specific knowledge of the company An applicant are writing to. This isn’t a
must, but will help to grab the attention of a potential employer. It shows An applicant took
extra time to research what they are about.
4. Specifically ask for an interview and tell the company how an applicant will follow up. If
An applicant take this proactive approach and follow up, An applicant will be much more
likely to get an interview

55
Tips for Completing a Job Application

1. Follow all directions printed on the job application. Look the application over carefully
before an applicant begins working on it. Show the employer that an applicant can do what
is expected of you.
2. Fill out the application yourself. Employers want to know how well an applicant read and
write, not how well the friend or parents can write.

3. Print using black ink. Printing is much easier to read. Use the best penmanship.

4. Think before an applicant write to avoid mistakes. If an applicant does make mistakes, draw
one line through it. Don’t blot it out!

5. Have all of the data handy. It is a good idea to fill out a “pocket resume” or extra application
ahead of time and take it with you. Then an applicant will have all of the information ready.
It also shows good planning on the part. 6. Put something on every blank. The employer
needs to know that an applicant did read it, but it just doesn’t fit the situation.
So, if it doesn’t apply, put N/A (this means it does not apply to you), or draw a line in each
box. Do not write “see resume” even though an applicant is attaching one.
6. Be as specific as possible with all answers.
7. Be specific about employment history in the application. Make sure an applicant know
starting and ending dates of all the jobs. Employers are looking for a complete work history,
including gaps in employment.
8. Proofread the application before submitting it. Don’t forget to sign it and be sure to read
what an applicant are signing
9. Salary desired? Do not pin yourself down to a dollar figure. An applicant may: oversell
yourself and the employer will think an applicant is too expensive undersell yourself and
ask for less than the employer was planning on paying for that position

56
 Homework Activity: 2
Prepare a cover letter for job application for a business officer position in ABC
Company

Where to Look for a Job

Once an applicant has the above information organized, it is time to start looking for a job.
Here are some common sources of job information:
1. Word of Mouth/Networking - The best source is the old reliable “grapevine.” Ask around!
Ask family, friends, neighbors, and co-workers if they know of any businesses who are
hiring. Talk with the parents of the friends. Ask them for leads and let them know an
applicant is looking for a job. More job leads are discovered through networking than any
other method.
2. Pounding the Pavement - This is the oldest method of job hunting, especially for entry-
level positions. This means literally going door-to-door and submitting job applications.
3. “Help Wanted” Signs - Maybe the simplest method of all is the good old “Help Wanted”
sign in the front window. If an applicant sees one, don’t go in right away. Take some time to
prepare. Practice writing a cover letter and prepare a resume.
4. Public Employment Agencies - Youth Opportunities Unlimited (YOU) provides various
career services including job placement assistance for students in Kalamazoo County. Some
of their services are based on income eligibility. School credit may be available in certain
situations. The phone number for an applicant
5. Newspapers - Newspapers usually list jobs under the “Help Wanted” column of the
classified ads. Many newspapers are now putting their Help Wanted ads on their websites.
These are usually unique listings specific to a certain location. One website to try for
Michigan classifieds is www.mlive.com/jobs. Some companies are advertising in
nontraditional sites such as www.craigslist.org. The key here is to be persistent!
6. List of Employers - Check the yellow pages of the telephone book, industrial directories,
and the local Chamber of Commerce listings. They will tell an applicant about local
businesses or employers.
7. Government - Civil Service Commission jobs involve working for the local, state, or
federal government. In order to get a civil service job, an applicant must take a civil service

57
 occupation-specific test. Candidates for civil service jobs are then contacted based on their
test score.
8. Unions - Industrial and trade unions have exclusive hiring authority for some companies,
usually through apprenticeship programs. Listed below are some of the unions represented
in the area that have apprenticeship programs. The first step in becoming part of an
apprenticeship program is filling out an application, which can be obtained by calling the
numbers listed.

Online Application Process

Many companies are now having prospective employees apply online. Sometimes this is the only
way to apply and there isn’t a paper application that can be filled out. An applicant may be able
to access the site from any computer or an applicant may have to go into the business to use a
specific computer that is set up for online applications.
Tips for Completing Online Applications
1. The focus should be on making the application unique, to avoid its being swallowed up in
the technology abyss.
2. Follow directions. Be careful to enter the correct data in the correct field.
3. Tailor the information to the position. Don’t copy and paste text from the resume.
4. Use key words, buzz words, and industry verbiage. Use the verbiage in the job ad as the
model. Employers search key words when they’re looking for people to fill specific
positions. Create a skills-inventory section even if the application doesn’t require it. An
applicant might put this in a “comments” section.
5. Include numbers and statistics if available. Example counted five cash drawers daily;
Responsible
6. Complete all fields – even those that aren’t required
7. If the company offers an optional assessment test online, take it. Some employers have
said that candidates who don’t take the optional assessment test are automatically screened
out.
8. Make sure the resume can hold its own in a very simple format. Fancy bullets, text, italics,
and bold do not convert well in an electronic application.
9. Spell check and grammar check the application before submitting it. Have an error-free
application because this application serves as the employer’s first impression of you.
10. Include a strong objective tailored to the specific job for which an applicant is interested.
11. Another use for the comments section: use it to demonstrate that you’ve done research on
the company and the industry.
12. Follow-up the electronic application with a personal e-mail to the hiring manager. A
follow-up phone call is acceptable if the ad does not say “No phone calls.”
1. Interviews
After the application is made for a job, the next step is interview if the employer finds an
applicant attractive. The job interview can be one of the most important few minutes of the life.

58
Self-check Questions
1. What are the basic contents that should be included when writing a resume?
2. What are the common sources of job information that the job- seeker refers to the availability
of hiring somewhere else.
3. What is the purpose of a resume?

59