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Entrepreneurship
Rank: Elder Joined: 2/23/2009 Posts: 1,626
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I think we need entrepreneurs now more than ever.This applies to Kenya and the world in general. I shall share my thoughts on this subject and my hope is that it will not only bring you profits but help make the world a better place.Keep in mind,we have to try and start living sustainably because time is running out. We Do Not Inherit the Earth from Our Ancestors; We Borrow It from Our Children. by Amish Saying? Ralph Waldo Emerson? Native American Proverb? Chief Seattle? Moses Henry Cass? Dennis J. Hall? Helen Caldicott? Lester Brown? David R. Brower? Taghi Farvar? Anonymous?Who knows. Lets get started. ChessMaster attached the following image(s):  entrepreneurship.jpg (9kb) downloaded 12 time(s).Uncertainty is certain.Let go
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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I'll begin with describing entrepreneurship using Joseph Schumpter's definition of what entrepreneurship is.His focus was on the innovative nature of an entrepreneur.Below is his description. An entrepreneur: 1. Introduces a new product. This is a new good/service.Most of the things we take for granted today were at some point new products some even revolutionary.A good example is the personal computer and laptops. 2.Introduces a new production method. A production method is the process of creating goods/services. The best example for this would be the industrial revolution where manufacturing shifted from hand made to machines. A current example is the digital shift which we are experiencing. The production method doesn't necessarily change the product just the means of creating it. 3.Finds new markets. This is when you use the same product for different uses and/or different markets than the original market.A great example for this is the story of the shoe salesmen in Africa. "Two shoe salesmen were sent to Africa to see if there was a market for their product. The first salesman reported back, "This is a terrible business opportunity, no-one wears shoes." The second salesman reported back, "This is a fantastic business opportunity, no-one wears shoes." A good example for different uses of the same products would be engines. You find engines in a lot of equipment(although there can be a big difference) but the same concept was spread to accommodate different uses. 4.Uses a new source of raw material.You still make the same product but utilize different raw materials.Like how car manufacturers have and continue to rethink car bodies. 5.A new form of organization. The most common being article writers and other work at home organizations. Or how Apple changed the music industry by reshaping product delivery. But lets not forget our own telecommunication companies and how they are helping to redefine industries as well as their own.Another clear example is pizza companies adding deliveries into their organizations. It is important to note that there is a difference between an entrepreneur and an investor. An investor commits capital(it could be money or assets) to a venture and expects returns on his investment. I have not intentional excluded business owners as entrepreneurs but focused on defining one in innovative terms.Next up the entrepreneurial spirit. Uncertainty is certain.Let go
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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Having covered what an entrepreneur does,lets discuss who an entrepreneur is. There are many templates by which we can use to describe one and even more practical examples we can utilize,but that's not how I will approach this. To understand successful entrepreneurs we have to look at their environments. They all face an unpredictable future with a myriad of challenges stemming from the political arena,social,economical and so on. Below are the five essential attributes that I believe all entrepreneurs have and utilize to conquer this daunting task called entrepreneurship. 1.PassionPassion is one of the most important things in an entrepreneur and his/her passion should exceed the desire for monetary gratification. Everyone has a passion for something but successful entrepreneurs have learnt to leverage their passions to achieve success. It is their engine,burning hot and ever pushing them forward.The quest for you is to find out your passion. 2.ResilienceIt's not about winning every battle you face.Its about facing the outcome(whatever it may be) and moving forward.Roll with the punches but take time to deal with situations your own way.As an entrepreneur you are not in control of a lot of things but you can learn to be in control of yourself. 3.AdaptiveChange is the only constant in the world!To believe otherwise is detrimental not only to your personal growth and but to your success.When you set out to achieve something always remember this. As an entrepreneur you will face many a things that will challenge you and your venture.Take time to reflect and you will be surprised at how much you will learn about yourself.Understand your priorities,guiding principles and values.Then evaluate,refine and strengthen your goals towards what you want to achieve.Even if your venture doesn't succeed,you will still come out a better person! 4.Solution OrientedThe mind is a muscle.It becomes good at what you expose it to.The world is filled with problems and very few people want to solve them.Entrepreneurs don't see opportunities,they see solutions.When you focus on solutions you will soon discover opportunities aren't that far behind.Ask yourself this,are you busy seeing problems or pondering solutions? 5.FocusIf passion is the engine then focus is the steering wheel.Build upon your passion with an objective(even if your objective is to find an objective),be resilient when you encounter roadblocks,adapt to the terrain and keep your eyes open.You might be closer to destination than you think. "A traveler in ancient Greece had lost his way and, seeking to find it, asked directions of a man by the roadside who turned out to be Socrates. "How can I reach Mt. Olympus?" asked the traveler. To this Socrates is said to have replied, "Just make every step you take go in that direction." Uncertainty is certain.Let go
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Good one @chessmaster 
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Rank: New-farer Joined: 1/4/2013 Posts: 22
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ChessMaster wrote:I'll begin with describing entrepreneurship using Joseph Schumpter's definition of what entrepreneurship is. An entrepreneur: 1. Quote:Introduces a new product. This is a new good/service.Most of the things we take for granted today were at some point new products some even revolutionary.A good example is the personal computer and laptops.
I think that innovators are the ones who introduce new things, entrepreneurs see the value in this new things/services, and bring the new idea to market. an entrepreneur has to innovate because he is in competition : either with others or with himself. He must invent a product or a a product/service that is better than what is in the market, how value is delivered to his target customer segment
Quote:2.Introduces a new production method. A production method is the process of creating goods/services. The best example for this would be the industrial revolution where manufacturing shifted from hand made to machines.
Again i think this happens as an entrepreneur seeks to survive in a competitive market. s/he must find "efficient" ways of ensuring they deliver value to their target market segment or maximize profits by reducing the operational costs. Perhaps mechanization, took off as rapidly as it did because it was more efficient, and "cheaper" in the long run compared to human labour? Best example I would give is Dell, Dell made computers, but the value proposition for their customers was, highly customized service/products. A client got what they wanted, how they wanted it.
Quote:A current example is the digital shift which we are experiencing..
the internet and its rapid uptake by the masses provided a new distribution, marketing, customer support and value delivery channel. The product may have remained the same but the method of delivering the value, and maintaining a relationship with the customer, changed.
Quote:3.Finds new markets. This is when you use the same product for different uses and/or different markets than the original market
true. Competition is very expensive, for any firm/individual. It may be good for the buyer, but it ruins the bottom line for the seller. ( 9/10 times, this is true) he who is able to create a new market and avoid competition, albeit for a while, wins. After all the ( secret and mostly unsaid )aim of any business is to create a market monopoly . To be dominant player.
Quote:It is important to note that there is a difference between an entrepreneur and an investor. An investor commits capital(it could be money or assets) to a venture and expects returns on his investment.
Hey @Chessmaster, great points and break down. I am from an investor/finance background, and i think the same principles used in decision making in the finance field, can be used in entrepreneurial decision making. I agree with the above points. Money in itself is an idea, hence it can only be multiplied if/when invested in an idea that creates/captures value in society. That said, i look forward to having an interesting and enlightening conversation on this topic.Dum vivimus, vivamus.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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@Lolest! & new - Thank you. I welcome the discussion.I agree finance is heavily relied on when it comes to decision making. Its one of the three pillars of an enterprise that I'll be covering.New production methods and products are entrepreneurial. Even in an organization,the employee who comes up with such is exercising the entrepreneurial spirit of not only surviving but thriving. Uncertainty is certain.Let go
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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So you think you've got what it takes to be an entrepreneur and your wondering where to start? Well that depends on you and your situation. I will guide you on how to use a SWOT analysis to chart your way forward.This is a critical stage and the concepts herein will be a guide for you through all the stages of your venture. SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The aim is to identify you and your ventures strengths and weakness and the opportunities and threats that your environment presents. The ideal situation is when you utilize your strengthens to take advantage of the opportunities present.You should also try use your strengths to subdue threats while also trying to work on your weaknesses. Strengths and weakness are internal factors(within your control) while opportunities and threats are external factors. Starting with strengths and weaknesses can be misleading,so we will start with opportunities and threats. The reason for this is because you might not be really sure if what you have are really strengths/weaknesses till you have a grasp of the environment. For this we shall use two time tested frameworks.One for the macro-environment(the bigger picture) and the other for micro-environment(the industry view).We shall use PESTEL analysis for the macro-environment and Porter's five forces for the micro-environment. Uncertainty is certain.Let go
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Chessmaster,
Your points on who an entrepreneur is reminds me of Sir Richard Branson of the Virgin Group who is a self made
billionaire.
Many other wealthy entrepreneurs are also self made and actually college dropouts.So, the question is this..If I am not yet an entrepreneur and am not inclined as such,can I be taught/encouraged to become one?
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Rank: Elder Joined: 7/11/2012 Posts: 5,222
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@Chessmaster Which would be the way forward/easier? To delete the current mindset then paste a new one... or just paste the new one on top of the old? The way we were/are educated influence who we are. Ours is a generation of zombies, whose dream is employment and a happily-ever-after! 'Thinking' here can be translated to finding the best method of implementing instructions.  These I would call 'noise'. Maybe you should seek to get rid of this 'noise', before you endeavor to impart wisdom, otherwise it may be an exercise in futility.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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@Chaka - Thank you,you've brought up something very important.First of all,books are written about entrepreneurs not about degrees.People tend to forget that.Secondly,even though they are dropouts(obviously not all of them) they are very vigilant when it comes to educating and bettering themselves beyond the class.One can be nurtured and supported to become an entrepreneur but if you don't desire to be one it is futile because you won't have the will to keep moving forward. @Mukiri - Thank you.It relates to what @Chaka brought up.The noise will always be there and one of the first steps an entrepreneur does is realize that self-employment is the path for them. If someone doesn't have that conviction in them,I doubt anyone can instil it.Education does influence us but there are still individuals who manage to change their minds irrespective of all the influence.But if I was to try and change the mindsets of people,then I would first have to finish what I've started so that someone can have a clear picture of the benefits and hardships that entrepreneurship offers.From there one can make an informed decision but I will cover something on that. Uncertainty is certain.Let go
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Rank: Member Joined: 2/20/2007 Posts: 767
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Chaka wrote:@Chessmaster,
Your points on who an entrepreneur is reminds me of Sir Richard Branson of the Virgin Group who is a self made
billionaire.
Many other wealthy entrepreneurs are also self made and actually college dropouts.So, the question is this..If I am not yet an entrepreneur and am not inclined as such,can I be taught/encouraged to become one? In regard to the statement in red above, I think we should have a healthy perspective (big picture) in mind. I agree there are probably hundreds of successful entrepreneurs on whom books have been written. However, for every successfull entreprenuer, there are hundreds who never made it. There are more successful employees in the world than there are successful entrepreneurs. The path that offers the best chances of making it in this world is the path of career success, being the best or very good in your chosen profession. No need to do anything new, just do whatever you do but do it very well. The problem with the 'entrepreneur thing'is that it is distorted by publication bias - only success stories get to be written. We never hear of the millions of failures. Before I encourage my son/daughter to go out there and invent, I will encourage him/her to study hard to the top and work hard when they reach there. Another thing is that the idea of becoming an entreprenuer and making it by 40yrs then relaxing for the rest of your life is a Mirage. Ask any successful person! They must find it difficult....... those who have taken authority as the truth, rather than truth as the authority. -G. Massey.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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Entrepreneurs are the backbone of the economy. I agree there are hundreds of entrepreneurs who've failed.But there are even more dissatisfied employees and in Kenya,even more unemployed.We still need them to create jobs. Uncertainty is certain.Let go
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Rank: Elder Joined: 7/1/2011 Posts: 8,804 Location: Nairobi
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We can also look at entrepreneurship from the perspectives of self concept and relationship environment.
Such perspectives will lead us to look at entrepreneurship as a way of living and growing up, and also as something that can involve the employed.
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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tycho wrote:We can also look at entrepreneurship from the perspectives of self concept and relationship environment.
Such perspectives will lead us to look at entrepreneurship as a way of living and growing up, and also as something that can involve the employed. Care to share more Uncertainty is certain.Let go
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Rank: Elder Joined: 7/1/2011 Posts: 8,804 Location: Nairobi
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So far, we have described the entrepreneur by what she brings to the market.
But the entrepreneur is a person operating in a social and cultural environment.
So she is playing a role that has been given to her. How does culture define and facilitate roles?
Can we create entrepreneurs all over Kenya in the next y no. of years?
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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tycho wrote:So far, we have described the entrepreneur by what she brings to the market.
But the entrepreneur is a person operating in a social and cultural environment.
So she is playing a role that has been given to her. How does culture define and facilitate roles?
Can we create entrepreneurs all over Kenya in the next y no. of years? Society and culture greatly affect the rise of entrepreneurs.Cultures that promote and reward risk takers nurture a variety of successful individuals not only entrepreneurs. One problem in Kenya is we stigmatize individuals who fail on their first attempts to entrepreneurship even though I have never had of someone who tried and did not learn something from it. Our culture designates the role of entrepreneurs to the rich and powerful.I have nothing against the rich.Problem is they are comfortable and out of touch with the common man so innovations that reach the common man will be less and less.Another thing is the common man doesn't have access to as much resources,though this doesn't always hold them back to achieve greatness. Culture is not stagnant.It should evolve.When we start appreciating and rewarding the entrepreneurial spirit at both spectrum's then we can have our youth growing up thinking of bettering this country and its economy. You have a problem in a country when the youth want to grow up to be corrupt because those are the role models that they see being idolized. Uncertainty is certain.Let go
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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Rank: Elder Joined: 2/23/2009 Posts: 1,626
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Update the Saturday after this.Biased on ethics. Uncertainty is certain.Let go
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Rank: Elder Joined: 3/19/2013 Posts: 2,552
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Now that the elections are behind us,we shall continue our march towards our future.I realized that I have to consider those without a business background and with that I will try to incorporate more definitions as I progress.
Let's start by defining business.In simple terms its a vehicle for deriving profit.A better definition - a legal entity that offers a product and or service with an aim of making a profit sustainably.This definition can be said to be incomplete but it will serve our needs.For now I shall defer the discussion on the types of businesses until a later time.
As you've already noticed,business comes with a lot of frameworks.I suggest you get used to them and their acronyms.They are indeed helpful and hold in them vital knowledge.
So what is a framework? A framework is simply a structure filled with components/parts aimed at achieving a certain purpose.As of now our purpose is to develop a SWOT analysis using PESTEL,Porters 5 competitive forces and internal analyses.
The components and their importance are defined by the purpose.A framework should also describe how the components relate to each other(if applicable) and to the underlying goal.
You can have categories within the components that are distinctive enough and merit recognition.When components have categories that overlap,consider separating the areas that overlap and create artificial categories or components that rely on the base components.For now I suggest keeping this in mind as we move forward until we start on PESTEL.
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Rank: Elder Joined: 3/19/2013 Posts: 2,552
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At this point it is important to introduce a new framework.I shall use it as an example.The framework is S.M.A.R.T. and is used as an aide to develop objectives.
Framework purpose:
Development of objectives.
Framework components:
S - Specific
As it implies,it should be unambiguous and particular.This is an important component as it breaks down the objective(s) into manageable goals.Objectives and goals are usually interchangeable but in this case,goals will be subservient to objectives.Objectives will give the purpose and the goals will address the details.
Goals in essence try to answer the 'How' of an objective by adressing the 5 W's - Who,What,Where,Which and Why.e.g. who will do what,what needs to be done,where will it be done.By attempting to get details concerning these questions one can develop specific goals to support the underlying objective.
M - Measurable
What gets measured gets done - Peter Drucker.You need to incorporate a way to track progress of your objectives and goals.Quantitative items,which can be measured with quantities are easier to handle e.g.getting a minimum of 30 clients.Qualitative items pose a challenge e.g. raising customer satisfaction levels.Though this should not dissuade you.Customer satisfaction can be measured against previous complaints and suggestions.
A - Attainable/Achievable
This concerns the feasibility of an objective and its goals within the available resources.Thus,it is very subjectivity as how one utilizes the resources before them can have different results.What one person might consider feasible is not what another person will.You should be realistic about your expectations.
Resources refer to anything you might need to achieve your objective and might include time,capital,expertise and so on.If need be acquire the necessary resources or redefine your goals and objectives to reflect your situation.It is not an enemy of dreaming big,but a challenge of how you will make it work.
R - Relevant
Your goals can be very specific,measurable and attainable but completely irrelevant.Relevancy is determined by how the goal contributes to achieving the objective.If it serves no purpose scrap it.
T - Time-bound
It focuses on the sixth W,when.Time is money so allocate and account for it wisely.With this in mind your goals should be time-bound as it will also help being more specific,track progress and account for the most important resource we have,time.
Now let's use this to redefine our current objective.
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