Entrepreneurship & Business

Key terms

Business, any economic activity carried out with the desire to make profit; the exchange of goods and services between the seller and the buyer.

Entrepreneur, someone who owns, operates, and manages his or her own business.

Entrepreneurship, identifying an opportunity, setting up and running a business to address it.

Producer, a person making the product or delivering a service.

Consumer, a person to whom the service is rendered or good sold.

Types of businesses

Small-scale, usually owned and operated by 1, 4 people that sell things or offer services in the neighbourhood, e.g. a chapati stall, small bakery, grocery shop.

Large-scale, an entity that produces and sells lots of products or services to many people, with many employees and customers, e.g. Coca-Cola, Mukwano Industries, Movit.

Characteristics of a good business person

Risk-taking, doing an activity even when results may be negative. A true entrepreneur does not take no for an answer.

Creativity, unique ideas to make your business better (e.g. adding carrots or margarine to your chapatis).

Self-motivation, doing a lot by yourself with minimal supervision because you are passionate.

Independence, being self-driven to overcome obstacles and succeed.

Open-mindedness, being flexible and embracing change. Every situation is an opportunity.

Steps of starting a business

Idea Generation, search for ideas; choose a name; design your product/service in terms of prices and branding.

Market Research, identify target market, competitors, market prices and distribution channels.

Gathering Resources, capital, land, labour, market.

Start the Business, assemble your resources; establish a specific process for products/services before selling.

Running / Operating, supervise activities; make healthy decisions; keep records of every transaction; NEVER mix personal money with business money.

A business can be run alone or with a group who share your interests. Value others' opinions to avoid misunderstandings.

How to develop entrepreneurial skills

Recognise the idea and analyse yourself in relation to what you would like to be in future.

Consider ideas that have captured your attention before.

Look at your environment and identify opportunities.

Conduct a survey to assess the market for your ideal business.

Take caution that will enable you to achieve your targets.

Discussion

Identify examples of people you know who are entrepreneurs.

What are examples of businesses an entrepreneur could start?

What are examples of businesses a school-going entrepreneur could start?

Do you consider yourself an entrepreneur? Why or why not?

Story, Emmanuel the traveling photographer

Emmanuel is often called a 'traveling photographer' as he always moves to different places to take pictures. He got his love for photography from an American visitor and would borrow his mother's smartphone to practise. He went around his neighbourhood taking pictures of children playing and birthdays free of charge, hardly knowing he would have a business of his own.

His journey was not easy, he struggled to raise capital to buy his first camera, which he did by saving pocket money his mother gave him. In 2015 he got his first job as a photographer and was paid 100,000/= for taking 20 photos per week. The request grew to 50 per week.

After 2 years, Emmanuel signed a 5-year contract with New Vision to supply 100 pictures per week, a 25 million deal. This allowed him to raise capital from Centenary Bank and register his business as an enterprise. He now has 6 cameras and employs 4 staff.

Emmanuel opened a Facebook page to keep in touch with clients and market his work.

Discussion: What was the main thing that led to Emmanuel's photography business? What positive elements did you hear in the way he used his neighbourhood to motivate his photography? Why is it important to do something you enjoy? What are your lessons from Emmanuel's story? What are some positive things Emmanuel does to keep communicating with his clients?