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Wednesday, June 22, 2 Wednesday, June 22, 2 022 022 1 Bayona, R.K.K. Bayona, R.K.K. PERSPECTIVES OF PERSPECTIVES OF ENTREPRENEURSHIP ENTREPRENEURSHIP PROGRAMME: MBA [IB] 2008 (Intake) PROGRAMME: MBA [IB] 2008 (Intake) LECTURER: BAYONA, R.K.K [MR], DIRECTORATE OF LECTURER: BAYONA, R.K.K [MR], DIRECTORATE OF GRADUATE SCHOOL, GRADUATE SCHOOL, DEPARTMENT OF COLLABORATIVE PROGRAMMES, DEPARTMENT OF COLLABORATIVE PROGRAMMES, INSTITUTE OF FINANCE MANAGEMENT [IFM], INSTITUTE OF FINANCE MANAGEMENT [IFM], DAR ES SALAAM - TANZANIA. DAR ES SALAAM - TANZANIA.
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Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 20141Bayona, R.K.K. PERSPECTIVES OF ENTREPRENEURSHIP PROGRAMME:

Mar 26, 2015

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Page 1: Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 20141Bayona, R.K.K. PERSPECTIVES OF ENTREPRENEURSHIP PROGRAMME:

Monday, April 10, 2023Monday, April 10, 2023 11Bayona, R.K.K.Bayona, R.K.K.

PERSPECTIVES OF PERSPECTIVES OF ENTREPRENEURSHIPENTREPRENEURSHIP

PROGRAMME: MBA [IB] 2008 (Intake)PROGRAMME: MBA [IB] 2008 (Intake)LECTURER: BAYONA, R.K.K [MR], DIRECTORATE OF LECTURER: BAYONA, R.K.K [MR], DIRECTORATE OF

GRADUATE SCHOOL,GRADUATE SCHOOL,DEPARTMENT OF COLLABORATIVE PROGRAMMES,DEPARTMENT OF COLLABORATIVE PROGRAMMES,

INSTITUTE OF FINANCE MANAGEMENT [IFM],INSTITUTE OF FINANCE MANAGEMENT [IFM],DAR ES SALAAM - TANZANIA.DAR ES SALAAM - TANZANIA.

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Monday, April 10, 2023Monday, April 10, 2023 Bayona, R.K.K.Bayona, R.K.K. 22

WHAT IS IN THE COURSE?WHAT IS IN THE COURSE?

INTRODUCTION: Entrepreneurship is seen as a positive force in the operating economies world-wide!FOCUS OF THE COURSE:

The identification and exploitation of the entrepreneurial opportunities,

The founding of new venture and its early development.

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Monday, April 10, 2023Monday, April 10, 2023 Bayona, R.K.K.Bayona, R.K.K. 33

MAIN QUESTIONS!!MAIN QUESTIONS!!

How entrepreneurship is developed in the economy?

How this process can be understood from the different perspectives: the society, the economy, the entrepreneurial individual, and the characteristics of the opportunity as the entrepreneurial process.

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COURSE OBJECTIVECOURSE OBJECTIVE

To create awareness of the causes leading to and consequences of the entrepreneurial process and new venture creation. Those who are interested to get into their own venture will benefit from the course, as an emphasis will be put on the practical use of the reviewed theories and research.

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ENTREPRENEURSHIP: THE ENTREPRENEURSHIP: THE QUOTABLE QUOTES QUOTABLE QUOTES

“Most of what you hear about entrepreneurship, says American leading management thinker, is all wrong. It’s not magic, and it has nothing to do with genes. It’s a discipline and, like any other discipline, it can be learned”.

Peter F. Drucker,

Innovation and Entrepreneurship

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‘‘quotable quotes continued’ quotable quotes continued’

‘It is not the critic who counts, nor the observer who watches from a safe distance. Wealth is created only by doers in the arena who are marred with dirt, dust, blood and sweat. These are producers who strike out on their own, who know high highs and low lows, great devotions, and who overextend themselves for worthwhile causes.

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‘‘continued’continued’

Without exception, they fail more then they succeed and appreciate this reality even before venturing out on their own. But when these producers of wealth fail, they at least fail with style and grace, and their guts soon recognizes that failure is only the resting place, not a place in which to spend a lifetime. Their places will never be with those nameless souls who knows

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‘‘continued’continued’

neither victory nor defeat who receive weekly paychecks regardless of their week’s performance, who are hired hands in the labor in someone’s else’s garden. These doers are producers and no matter what their lot is at any given moments, they’ll never take a place besides the takers, for theirs is a unique place, alone,

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‘‘continued’continued’

under the sun. They are entrepreneurs!

By Joseph R. Mancuso

Centre for Entrepreneurial Management.

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THE CONTEMPORARY WORLD THE CONTEMPORARY WORLD OF ENTREPREURSHIPOF ENTREPREURSHIP

THE ENTREPRENEURIAL REVOLUTIONWHO IS AN ENTREPRENEUR?The word entrepreneur is derived from French

entreprendre, meaning to undertake. The entrepreneur is one who undertake to organize,

manage, and assumes risks of the business. Individual(s) who recognizes & seizes opportunities

where others see chaos or confusion.Aggressive catalyst for change within the

marketplace.

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‘‘continue’continue’

Entrepreneur is a developer/innovator who recognizes and seizes opportunities, convert those opportunities into workable/marketable ideas, add value through time, efforts, money or skills and assuming risks.

Entrepreneurs must realizes rewards when implementing ideas at the marketplace.

Entrepreneurs are independent thinkers who dares to be different in a background of common events.

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Entrepreneurs characteristicsEntrepreneurs characteristics

Commitment, Determination, and Perseverance, Drive to achieve, Opportunity orientation, Initiative and responsibility, Persistent problem solving, Seeking feedback, Internal locus of control, Tolerance for ambiguity, Calculated risk taking

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,continue’,continue’

Integrity and reliability, Tolerance for failure, High energy level, Creativity and innovativeness, Vision, Self-confidence and optimism, Independence Team building

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ENTREPRENEURSHIPENTREPRENEURSHIP

There is no single definition of entrepreneur exist, and no one profile can represent today’s entrepreneur.

Entrepreneurship is highly associated with economics. Trace, a way back to;

French economist Sir Richard Cantillon associated entrepreneurship with ‘risk-bearing’ activity in the economy.

Industrial revolution in England. Jean Batiste Say [French economist], Australian economist Joseph Schumpeter (1934). Robert Ronstadt.

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Entrepreneurship [Defined]Entrepreneurship [Defined]

Entrepreneurship is the process of creating incremental wealth. This wealth is created by individuals who assumes the major risks in terms of equity, time, and career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by entrepreneur by securing and allocating the necessary skills and resources.

By Ronstadt, Entrepreneurship, p 28.

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Entrepreneurship in the present century has become synonymous or at least closely linked with free enterprise and capitalism.

Entrepreneurs saves as agents of change, provide creative, innovative ideas for business enterprise, and help business to grow and become profitable.

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Whatever the activity they engage in, entrepreneurs today are considered the heroes of free enterprise. Many of them have used innovation and creativity to build multimillion dollar enterprises from fledging businesses – some in less than a decade!!

Many people regard entrepreneurship as ‘pioneership’ on the frontier of business.

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Jeffry A. Timmons (1990) on his book New Venture Creation, 3rd Ed, pp. 5-6 had this to say;‘‘Entrepreneurship is the ability to create and build a vision from practically nothing: fundamentally it is human, creative act. It is the application of energy to initiating and building an enterprise or organization, rather than just watching or analyzing risks-both personal and financial-and then to do everything possible to reduce the chances of failure. Entrepreneurship also includes the ability to build an enterprise or venture team to complement your own skills and talents. It is the knack for sensing the know-how to find, marshal, and control resources (often owned by others)’’.

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THE TEN [10] MYTHS OF THE TEN [10] MYTHS OF ENTREPRENEURSHIPENTREPRENEURSHIP

1. Entrepreneurs are doers, not thinkers.2. Entrepreneurs are born, not made.3. Entrepreneurs are always inventors.4. Entrepreneurs are academic and social misfits5. Entrepreneurs must fit the profile.6. All entrepreneurs need is money.7. Entrepreneurs need is lucky.8. Ignorance is a bliss for entrepreneurs.9. Entrepreneurs seek success but experience high

failure rates.10. Entrepreneurs are extreme risk takers [Gamblers].

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THE BENEFITS OF THE BENEFITS OF ENTREPRENEURSHIPENTREPRENEURSHIP

1. Opportunity to create your own destiny

2. Opportunity to make a difference.

3. Opportunity to reach your full potentials.

4. Opportunity to reap unlimited profits.

5. Opportunity to contribute to the society and be recognized for your efforts.

6. Opportunity to do what you enjoy and have fun at it.

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THE POTENTIAL DRAW BACK THE POTENTIAL DRAW BACK OF ENTREPRENEURSHIPOF ENTREPRENEURSHIP

1. Uncertain of income.

2. Risk of losing your entire investment.

3. Long hours and hard work.

4. Lower quality of life until the business gets established.

5. High levels of stress.

6. Complete responsibilities.

7. Discouragement.Monday, April 10, 2023Monday, April 10, 2023 Bayona, R.K.K.Bayona, R.K.K. 2121

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INTRAPRENEURSHIPINTRAPRENEURSHIP

Kuratko and Hodgetts define the same as:“ Entrepreneurial activities that receives

organizational sanction and resource commitments for the purpose of innovative results.

THRUST: Is to create / develop the entrepreneurial spirit within corporate boundaries, thereby allowing an atmosphere of innovation to prosper.

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SMALL BUSINESSESSMALL BUSINESSES‘‘Small is beautiful and big is ‘‘Small is beautiful and big is

handsome’’handsome’’The term small is a relative term and therefore ambiguous. No dichotomy/yard stick to what is small business.

Different countries/institutions have different definitions of what constitutes a small firm.

USAID (1993) found 50 different definitions in 75 different countries.

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‘‘continue’continue’

Three terms – Informal Sector [IS], Micro and Small Enterprises (MSE) and Small and Medium Sized Enterprises (SMSE) they are used interchangeably to describe small firm in developing countries, Tanzania inclusive.

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Small Business [defined]Small Business [defined]

“The one which is independently owned and operated and not dominant in its field of operation”

SBA Annual Report, Volume II, 1972, p. 25.

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SCOPE OF SMALL BUSINESSSCOPE OF SMALL BUSINESS

1. Independent ownership.

2. Independent management.

3. Relative small size in its field of operation.

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CATEGORIES OF SME’s IN TZACATEGORIES OF SME’s IN TZA

Category Employees Capital Investment in Machinery(Tsh)

Micro enterprise 1-4 Up to 5 mil

Small enterprise

5-49 Above 5 mil to 200 mil.

Medium enterprise

50-99 Above 200 mil to 800 mil.

Large enterprise

100+ Above 800 mil.

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CHARACTERISTICS OF MALL CHARACTERISTICS OF MALL BUSINESSESBUSINESSES

1. Small size of the business.

2. Independently owned.

3. Independently managed.

4. It has small market share.

5. It has localized operation.

6. Presence of entrepreneurial spirit.

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Characteristics of the areas Characteristics of the areas where opportunity for small where opportunity for small

business success is greatest.business success is greatest.1. Where the small business owner is a

technological innovator.

2. Where owner performs a special service.

3. Where individual attention is required.

4. Where direct service s involved.

5. Where only small market exists.

6. Where funding or working capita required is relatively small

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7. Where the owner has previous experience in the business.

8. Where technological requirements are simple.

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ROLE OF SMALL BUSINESSES ROLE OF SMALL BUSINESSES IN TANZANIAN ECONOMYIN TANZANIAN ECONOMY

1. Source of employment creation.

2. Contributes significantly to the growth of Gross Domestic Product (GDP) & National Income.

3. Improvement in the living standard of the poor.

4. Consumer services.

5. Specialist services and products.

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6. Ancillary products and services to the large firms.

7. Distribution outlets for gig businesses.

8. Avenue of independence and innovation.

9. Avenues for entrepreneurial talents.

10. Stimulation of competition.

11. Cut price and extend choice.

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CAUSES OF SMALL BUSINES CAUSES OF SMALL BUSINES FAILUREFAILURE

1. Management problems.2. Under-capitalization.3. Lack of training.4. Lack of relevant/required experience.5. Lack of commitment.6. Inaccessibility to market intelligence.7. Inaccessibility to capital markets.8. Poor maintenance of books of accounts.

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Promoting enterprising culture Promoting enterprising culture among small firms ownersamong small firms owners

1. Sensitization.

2. Reward.

3. Supportive government policy.

4. Financial and non financial services be in place.

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QUESTION FOR DISCUSSIONQUESTION FOR DISCUSSION

On your own opinion, taking Tanzania as a case study, does entrepreneurship as a field of study have any positive impacts to socio-economic developments?

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END OF SESSION ONEEND OF SESSION ONE

REMARKS: Thanks a lot!!