MG632

Entrepreneurship Development
BY
Kafuku J
Tel: 0715922229
Email: [email protected]
Office: Block O – Opposite staff canteen,
CoET-UDSM
Room# 103, First Floor
Consultation hours for academic matter : 24/7
 COURSE DETAILS
COURSE OUTCOMES/OBJECTIVES:
At the end of this course candidates will be able to:
A. Demonstrate entrepreneurship concepts and its impact
in today’s economy
B. Understand the concept of marketing and its
importance to business ownership
C. Understand and apply management techniques in
operating a business
D. Understand the role of finance as it applies to the
entrepreneurship
E. Develop and organize a successful technical base
business plan
 COURSE DETAILS
COURSE CONTENTS
Introduction to Techno-entrepreneurship
A. A Framework for Entrepreneurship
B. Entrepreneurship and the Future
C. What Is Entrepreneurship?
D. Where Is Entrepreneurship?
E. Who Is the New Entrepreneur?
F. Dimensions of Entrepreneurship
G. Paradoxes of Entrepreneurship
 COURSE DETAILS
COURSE CONTENTS
Entrepreneurial Strategies
A. Entrepreneurship and Strategy
B. Business Models and Strategy
C. Resource-Based Strategies
D. Isolating Mechanisms and First-Mover
Advantages
E. Information Rules Strategies
F. Strategy and Industry Environments
G. Crafting and Evaluating Strategy
 COURSE DETAILS
COURSE CONTENTS
The Business Plan
A. Why Write a Business Plan?
B. Elements of the Business Plan
C. Critiquing the Business Plan
D. Format and Presentation
E. Business Planning Workbook
 COURSE DETAILS
COURSE CONTENTS
Introduction to Marketing
A. Objectives of marketing
B. The Marketing Process
C. Identification and evaluation of business
opportunities
D. Marketing Planning
E. Marketing plan fieldwork
F. Preparation and submission of marketing plans
 COURSE DETAILS
COURSE CONTENTS
A. Value Adding Transformation
A. The Operations Systems
B. Operational Planning
C. Operational planning fieldwork
D. Preparation and submission of Operational Plans

B. Organizing and Managing A Technology Based Enterprise

A. Designing an Organogram
B. Organization & Management Plan Guide
C. Organization and Management Planning fieldwork
D. Preparation and submission of Organizational and
Management Plans
 COURSE DETAILS
COURSE CONTENTS
A. Financial Aspects in Techno-Entrepreneurship
A. The Finance Function
B. Handy Finance Terms
C. Project Cost (Investment Requirement)
D. Profit & Loss Statement
E. Cash flow statement
F. Balance sheet
G. Financial analysis
H. Development of Financial Projections fieldwork
I. Submission of Financial Plans
 COURSE ASSESSMENT

A. QUIZ = (10%)
B. SEMESTER TEST = 20%
C. ASSIGNMENT = 20% (Development of
Business Plan – Groups Assignment)
D. University Examination = 50%
 Why are we Interested in Entrepreneurship?
A. You may have an idea that can change the world or
improve an existing process you are familiar with

B. You may have a technological breakthrough and

want to capitalize on it (perhaps, by founding a
startup)

C. You may have a passion and want to learn about

entrepreneurship while looking for a good idea,
technology, and/or a partner
Why are we Interested in Entrepreneurship?

In any of these cases, at this stage you may want simply to uncover the world
of startups and entrepreneurship. If so, let us get started!
 In contemporary
Introduction to Entrepreneurship
innovators or transform the
create value through take risks whilst seeking
developers who identify opportunities into
markets, entrepreneur multiple stakeholders rewards for their
and capture merchandisable
act as: and resources ventures and efforts
opportunities concepts
 Can Entrepreneurship be Taught?

A. Establish belief that we are all “Natural-

Born” Entrepreneurs.

B. Socially prepared Entrepreneurs.

C. Educationally prepared Entrepreneurs.

An entrepreneurship is a skill that can be taught, or can it only be

learned by doing?
 What are the Key Drivers
Working as a
team

A sense of adventure

A sense of wonder
Taking initiative and
Questioning risk

Thinking flexibly
Looking for
opportunities

Tapping into interes

Thinking resourcefully Thinking critically

A sense of
determinatio
n

Thinking
Thinking creatively
independently
 “Tell me and I will forget.
Show me and I may remember.
Involve me, and I will understand.”

Confucius, 490BC
 Theoretical
Interactive experiential
knowledge
learning

Marks driven
Entrepreneurial mind-set

Educational Impact
Outcome based
Entrepreneurial skills
attitude

Performance Learner
Entrepreneurial Learner
Traditional
Passive, knowledgeable,
Creative, Non
Critical thinker, Entrepreneurship Culture in the
risk takers, Accepts
“Classroom”
Resourceful, status
Delivery
Opportunity “Classroom”
quo
seeker

VS
Learner develops
life skill to navigate
and change current
market realities

“We should never let our schooling interfere with your education”.
 Définition of an Entrepreneur
To date, several definitions have been penned to describe an entrepreneur. And some of them are mentioned herewith:

Entrepreneur is someone who manages all the necessary resources to produce and market a product which responds to
the market scarcity (Leibenstein, 1968; Bull & Willard, 1993).

“Entrepreneurs are individuals who recognize opportunities where others see chaos contradiction, and confusion. They
are aggressive catalysts for change within the marketplace” Kuratko (2016, p.3)

“Entrepreneur is the person who carries out new combinations, causing discontinuity. The role is completed when the
function is completed. The person may be an employee with an existing organisation or may start a new venture. An
investor per se only risks capital for a return.” Bull & Willard (1993, p. 186)
 Personal Characteristics of
Successful Entrepreneurs

•Persistent •Goal-oriented
•Creative •Independent
•Responsible •Self-confident
•Inquisitive •Risk taker
 Skills Needed by Successful
Entrepreneurs
•Communication skills
•Human relations skills
•Math skills
•Problem-solving & Decision-making skills
•Technical skills
•Basic Business skills
 Entrepreneurial Characteristics
• Successful Entrepreneurs:
– Are resourceful.
– Are concerned about good customer relations.
– Desire to be their own boss.
– Can deal with uncertainty and risk.
– Are open-minded.
– Rely on networks, business plans, and consensus.
– Have different views on how to succeed, to
automate a business, and when to rely on
experience or business acumen.
 Reasons for Failure and Success

• Failure
– Poor management
– Neglect
– Weak control systems
– Insufficient capital
• Success
– Hard work, drive, and dedication
– Market demand
– Managerial competence
– Luck!!!
 Business Ownership

• Forms of Legal Ownership

– Sole proprietorship: Owned and operated by one person
– Partnership: Sole proprietorship multiplied by the number
of partner-owners
– Corporation
• Choice of Ownership Form
– Based on the entrepreneur’s needs/desires for control,
ownership participation, financing sources, and
appropriateness of the chosen form for the industry in
which the firm will compete
 Sole Proprietorships

• Advantages: • Disadvantages:
– Freedom – Unlimited liability:
– Simple to form Owners are responsible
for all debts of a
– Low start-up costs business
– Tax benefits – Limited resources
– Formation of – Limited fundraising
cooperatives capability
– Lack of continuity
 Partnerships

• Advantages: • Disadvantages:
– More talent and – Unlimited liability for
money general partner
– More fundraising – Disagreements
capability among partners
– Relatively easy to – Lack of continuity
form
– Limited liability for
limited partners
– Tax benefits
 Alternatives to General Partnerships

• Limited Partnership
– Allows for limited partners who invest money but are
liable for debts only to the extent of their investments
– Must have at least one general (or active) partner, who is
usually the person who runs the business and is
responsible for its survival and growth
• Master Limited Partnership
– Organization sells shares (partnership interests) to
investors on public exchange. Investors are paid back from
profits
– The master partner retains at least 50 percent ownership
and runs the business, while minority partners have no
management voice
 Cooperatives
• Combine the freedom of sole
proprietorships with the financial power
of corporations
• Groups of sole proprietorships or
partnerships agree to work together for
their common benefit
 Corporations

• Corporation
– Firms that have filed papers of incorporation
• Corporations may:
– Be small or large
– Sue and be sued
– Buy, hold, and sell property
– Make and sell products
– Commit crimes and be tried and punished for them
– Have limited liability for individuals who form them
 Corporations

• Advantages: • Disadvantages:
– Limited liability: The – Double taxation of
owners’ responsibility dividends
for the debts of a
– Fluid control
business is limited to
their investment in a – Complicated and
business expensive to form
– Continuity
– Stronger fundraising
capability
 Types of Corporations

• Closely Held (Private) Corporation

• Publicly Held (Public) Corporation
• Subchapter S Corporation
• Limited Liability Corporation (LLC)
• Professional Corporation
• Multinational (Transnational) Corporation
 Managing a Corporation

• Corporate Governance
– The roles of shareholders, directors, and other managers in
corporate decision making and accountability
– Corporate governance is established by the firm’s bylaws
and involves three bodies:
• Stockholders (shareholders): Investors who buy ownership shares
in the form of stock
• The board of directors: Group elected by stockholders to oversee
corporate management
• Corporate officers: Top managers hired by the board to run the
corporation
 Stockholders: Owners of Corporations

• Stock: A share of ownership in a corporation

• Dividends: Profits distributed among stockholders
 Special Issues in Corporate Ownership

• Joint Ventures and Strategic Alliances:

– Strategic alliance: Two or more organizations collaborate
on a project for mutual gain
– Joint venture: Partners share ownership of a new
enterprise
• Employee Stock Ownership Plans
– Allows employees to own a share of the corporation
through trusts established on their behalf
• Institutional Investors
– Control enormous resources and can buy huge blocks of
stock
 Special Issues in Corporate Ownership (cont’d)

• Mergers, Acquisitions, Divestitures, and Spin-

Offs:
– Merger: Two firms combine to create a new
company
– Acquisition: One firm buys another outright
– Divestiture: Strategy whereby a firm sells one or
more of its business units
– Spin-off: A firm sells part of itself to raise capital
 End of Lecture 1

Assignment 1

Submission Deadline: 15th November 2022 at 00:00 hours

(online program)