BUSINESS IDEA AS THE ‘SINE QUA NON’ FOR SUCCESSFUL ENTREPRENEURSHIP.

RAHEEM SHEFIU

(ENTREPOWER)

entrepowerng@gmail.com, 08038509401

A business idea is any concept that can be used to make money. It centers on a product or service that can be offered for money .It is the first milestone in the process of founding a business. Entrepreneurs need ideas to start and grow their entrepreneurial ventures. Generating ideas is an innovative and creative process. Sometimes, the most difficult aspect of starting a business is coming up with a business idea. The best ideas for a new business are likely to come from activities and people that you already know well. 

 Source:Google

 Every successful business starts as someone’s idea. It must be relevant, innovative, unique, clear focused and profitable in the long run.  Most business ideas exist in abstract form; usually in the mind of its creator or investor and not all business ideas, no matter how brilliant that may be profitable. A feasibility check must be conducted to find out about an idea’s chances in the market .Every good business idea must offer benefits to the customer by solving a problem or fulfilling a need. It must have a unique selling proposition, must have a market that is willing to accept it, must offer a product or service that would be accepted by a large market, must have a mechanism for making revenue and  also show how much money can be earned from it and how the money will be earned.   

 Source:Google

Idea generation is the most important function of the entrepreneur. It is made possible through the vision, insight, observation, experience, education, training and exposure of the entrepreneur. It involves   product selection and project identification. It is the function of the entrepreneurs to generate as many ideas as he can for the purpose of selecting the best business opportunities which can subsequently be taken up by him as a commercially-viable business venture. Any good business idea could be an invention, a new product or service, or an original idea or solution to an everyday problem.

 Source:Google

A good business idea does not necessarily have to be a unique products or services. Majority of the entrepreneurs credited their accomplishment to the exceptional execution of ordinary ideas. The chances of success therefore will be far greater if you can market a product that is similar to existing offerings, while providing greater value to customers, extension of an existing product, creation of an improved service , market a product at a lower price ,value addition  to an existing product or service, altering product quality or quantity, automation introduction, simplification, convenience, personal interests or hobbies , work experiences, skills, abilities , a familiar or unfamiliar product or service, spotting the latest trends, changing the delivery method, packaging, unit size or shape, increasing mobility, access, portability or disposability, simplifying repair, maintenance, replacement or cleaning and changing product colours, materials or shapes.

 

Source:Google

Several techniques can be used to stimulate and facilitate the generation of new ideas for products, services and businesses which include brainstorming which is a process in which a small group of people interact with very little structure, with the goal of producing a large quantity of novel and imaginative ideas. The goal is to create an open, uninhibited atmosphere that allows members of the group to freewheel ideas. The leader of the group asks the participants to share their ideas. As group members interact, each idea sparks the thinking of others, and the spawning of ideas becomes contagious .In Focus Groups, individuals provide information using a structured format. A moderator   leads a group of people through an open, in - depth discussion. The group members will form comments in open-end in-depth discussion for a new product area that can result in market penetration. This technique is an excellent source for screening ideas and concept. The observation  method can be used to describe a person or group of peoples behaviour by probing: (1) What do people/organisations buy?,(2) What do they want and cannot buy?,(3) What do they buy and don't like?,(4) Where do they buy, when and how?,(5) Why do they buy? (6) What are they buying more of?,(7) What else might they need but cannot get?. Survey involves the gathering of data based on communication with a representative sample of individuals. This research technique requires asking people who are called respondents for information either verbally or by using written questions. Questionnaires or interviews are utilised to collect data on the telephone or face-to-face interview. Emerging Trends is based on the population within your area may be getting older and creating demand for new products and services. Research and Development involves a planned activity aimed at discovering new knowledge, with the hope of developing new or improved products and services. Researching new methods, skills and techniques enable entrepreneurs to enhance their performance and ability to deliver better products and services. The attendance at tradeshows and association meetings could also be an excellent way to examine the products of many potential competitors, uncover product trends and identify potential products and reading relevant trade magazines and browsing through trade directories. These may include local, national and foreign publications.  

    

The tasks in developing business ideas involve the identification of  the value proposition of your business idea which is meant to identify and briefly describe the unique value that you want to bring to your customers that your competitors cannot, discuss products/services with prospective customers who could buy from you, at what price, at what frequency etc.?, Why would your potential customers prefer your products to  that of the competitors? .In order to be successful in business,  every prospective entrepreneur  must find out what the potential customers  really think .

Raheem Shefiu, entrepowerng@gmail.com, 08038509401.

 
 

ENTREPRENEURSHIP AS THE ‘NEUCLEUS’ OF NIGERIA’S ECONOMIC DEVELOPMENT.

RAHEEM SHEFIU    entrepowerng @ gmail.com, 08038509401

ENTREPRENEURSHIP AS THE ‘NEUCLEUS’ OF NIGERIA’S ECONOMIC DEVELOPMENT.

Entrepreneurship was derived from the French word ‘’entreprende’’ meaning to ‘’undertake’’. It is the practice of starting new businesses or revitalizing matured organizations, particularly new businesses in response to identified opportunities.  The creation of business is certainly an important facet of entrepreneurship. The characteristics of seeking opportunities, taking risks beyond security and having the tenacity to push an idea through to reality are important characteristics of entrepreneurs. It involves the discovery, evaluation and exploitation of opportunities to introduce new goods and services, organizing markets, processes, and new materials through organizing efforts that previously had not existed. It is the pursuit of opportunity without regard to resources currently controlled.

Schumpeter presented five types of entrepreneurial behavior which include: the introduction of a new product; the introduction of a new method of production; the opening of a new market; the conquest of a new source of supply of raw material and the creation of a new organization of an industry.

 The three main drivers of an entrepreneur are: the will - power and independence; the aim to triumph and the happiness of creating something new. Resources needed by entrepreneurs include personal touch in which customers will often pay a premium for personalized attention. In fact, in many industries where product and price differences are minimal, the human factor emerges as a prime competitive advantage. Greater motivation is vital in the management of a small enterprise which consists of the owner(s) consequently; they work harder, longer and with more personal involvement. Profits and losses have more meaning to them than salaries and bonuses do to the employees of a larger company. A small enterprise also has the prime competitive advantage of greater flexibility. A big business cannot close a plant without opposition from organized labour, or even raise prices without possible intervention from the government, but a small enterprise can react quickly to competitive changes. It could also be said that small scale  enterprises have shorter business lines of communication, narrow product lines, limited markets and enjoy the advantage proximity of factories and warehouses, they can also quickly spot trouble or opportunity and take appropriate action. Appropriate analytical skill of market trends is difficult for executives of large companies. This “management myopia” leads to redundancy and bureaucracy. In a small business the whole problem can be understood readily, decisions can be made quickly and results checked easily. Small company can try new sales tactics or introduce new products without attracting undue attention or opposition

The economic resources needed by the entrepreneurs or small scale business owners include money which is necessary to obtain goods and services that are needed for their production activities. A major way in which money is obtained is through personal savings, relations and financial institution. The real value of money can be measured in terms of what necessities, wants and security it will provide for the future. The equipments which may be as simple as a small knife or a paper clip. It may be a telephone installed by the telephone company, a microwave oven with digital electronic controls, or a pocket computer. The value of any equipment depends on the efficiency with which it is used because the best equipment cannot think or act on its own.

The importance of human resources cannot be underestimated, energy and skills become a vital issue that concerns all entrepreneurs. Good health is essential to maintaining a high energy level, adequate nutrition, rest and exercise are basic necessities. Personal attitudes also have a strong influence on an individual’s energy supply. People who accomplish a great deal usually have a positive attitude and goals to motivate them. Skills are developed when a person learns how to do a task competently, anyone can develop skills by willing to put in the necessary effort. There are several types of skills required by entrepreneurs: practical everyday skills such as writing legibly or doing household chores; vocational skills that enable a person to do a particular job; and recreational skills like dancing, painting, or sports. They enhance their life by adequately developing their skills.

The role of entrepreneurship in economic development can be viewed from various angles. Setting corporate ethical standards is very important because it involves knowing what is right and wrong accordingly.  Entrepreneurs create employment for the increased population and also help to prevent rural-urban drift. They reduce crime rate within the economy coupled with an improvement in the standard of living of the people through the provision of quality products and services. They also motivate workforce employed by the MSMEs. The improvement in standard of living is the responsibility of the entrepreneurs as healthy people will bring about a wealthy economy. Government revenues gets a boost through the payment of Value added taxes, company income taxes and income taxes  by the entrepreneurs.

Entrepreneurs source for their raw materials locally and  also rely more on local content in the conduct of their activities therefore help in local resource utilization. They develop indigenous industrial machinery and equipment; evolve a management approach in consonance with the indigenous culture in addition to the provision of larger industries with raw materials for the expanded output. This will reduce the cost of production, reduce the price level and increase the level of economic welfare.

They are confronted by many obstacles in Nigeria such as lack of a pro-active regulatory environment that encourages innovative enterprise development at the grassroots level. Energy, other infrastructural deficits and systemic irregularities are inimical to the survival of  small businesses. There are trade barriers and administrative red- tapeism that curtail capacity building and inhibit access to technical support. Deserves a mention is the lack of effective regulatory mechanisms and oversight of enterprise development initiatives, especially those in the MSME space. There is an inadequate access to vocational and skills-development training for rural and urban youths involved in the informal economy and also rampant political and bureaucratic corruption, coupled with the absence of social consensus on important macroeconomic policy issues.

  

LIFTING THE VEIL OF AN ENTREPRENEUR

LIFTING THE VEIL OF AN ENTREPRENEUR

BY

RAHEEM SHEFIU

(ENTREPOWER)

entrepowerng@gmail.com, 08038509401

An entrepreneur is a creative ‘destroyer’ empowered by innovation within the market place when he carries out and also experiments with new combinations. He organizes, manages, and assumes the risks of a business or enterprise. He develops a new or improved product, service or way of doing things that can exist independent of the creator, and bears the financial responsibility for risks in bringing their development to market. He is an action oriented and highly motivated individual who has the ability to see and evaluate business opportunities, and gather the necessary resources, to take advantage of them  to initiate appropriate action , to ensure success and to take risks to achieve goals. 

He creates jobs, solves problems, adds value and seeks excellence. He or she is known as one who assumes the responsibility and risk for a business with the expectation of making a profit. The entrepreneur generally, decides on the product, acquires the facilities and brings together the labour force, capital and production materials. If the business succeeds, the entrepreneur reaps the reward of profits, if it fails, he or she takes the loss. An entrepreneur is also seen as an individual who creates some sort of innovate economic activity that did not previously exist. He or she provides and services through new business or be attempting to revitalize existing businesses , and thereby, make good out of any necessary situation.

  

  He is driven by will  - power and independence, the aim to triumph and the happiness of creating He is a specialist in taking on risk ,  identifies business opportunities and organizes the required resources to initiate successful business activity. An entrepreneur is different from a manager who only plans, organizes and controls a business idea after it has been successful initiated by the entrepreneur .He consistently thinks and acts in ways designed to uncover new opportunities that are then applied to provide value. He breaks barrier by thinking out of the box.

He ventures out,  prefers change as a means of growth and in the process is prepared to take a calculated risk hile taking risks he is aware of the possibilities, success as well as the consequence of failure
The categories of innovations carried out by the entrepreneur that tend to be the specific by - products of entrepreneurial activities include the Introduction of a new product or service that is an improvement in the quality of an existing product or service, introduction of a new process or method that increases productivity, the opening of a new market, particularly an export market in a new territory, the conquest of a new source of supply of raw materials, half-manufactured products or alternative materials and the creation of a new organization

Entrepreneur types include the social entrepreneur who is motivated by a desire to help improve and transform social, environmental, educational and economic conditions. He is driven by an emotional desire to address some of the big social and economic conditions in the world. Business entrepreneur is one who continuously comes up with new ideas and starts new business. He is symbolized by possessing a higher propensity for risk, innovation and achievement. Serial entrepreneurs are more likely to experience repeated entrepreneurial success. They are more likely to take risks and recover from business failure while the lifestyle entrepreneur places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn a living.

The functions of the entrepreneur in an economy include the selection of business opportunities. Human beings have a variety of needs. Some of the needs are satisfied by making available relevant goods and services. Other needs may remain unsatisfied due to the absence of the required goods and services. This category of unsatisfied needs constitutes the business opportunities that can be exploited at any given time and place.

They combine factors of production such as land, labour and capital that are needed for production. They establish business enterprises that are required to combine the factors of production which is coupled with the management of these enterprises which involves an effective day to day running of the business that entail is alsos planning organizing and coordinating.

Entrepreneurs also take decision that involves the choice and the adoption of an alternative course of action on issues affecting the business. In view of the uncertainty in the success or failure of an alternative course of action taken, there is a high degree of risk in decision making.

It is expected that every aspiring entrepreneur should have a vision which is an idea or a description of what one wants to achieve or to become in the long term future, setting of goals on short and medium term bases is equally germane., self motivation which is an internal drive that spurs an individual into action so as to achieve the set goals or objectives should be taken seriously. There must be sacrifice on the part of the entrepreneur which involves given up something in anticipation of getting another thing in future. The establishment and the successful management of business enterprises involve sacrifice of time and resources in anticipation of getting profits. Therefore, for one to become an entrepreneur, one must imbibe the habit of making sacrifices. He should be able to imbibe the culture of time management which involves the ability to accomplish many tasks within the shortest possible time.

 Hard work is a necessary attribute which entails continuity and consistency in putting the required efforts for the achievement of set goals. Perseverance, on the other hand, means remaining resolute and determined, in spite of perceived or real hurdles on the way to the achievement of the set targets. Also, an entrepreneur should be decisive which is an ability to react quicklyand rightly on matters of concern. A business involves making and taking decisions on many issues such as where to locate the business, amount of capital required, type of people to employ etc. Fear of failure should not prevent one from taking decisions. It is always better to take decisions and fail than failing to take decisions at all. Therefore an individual aspiring to become an entrepreneur needs to be decisive on all matters of concern. Firmness and stead fastness must be watch word of every aspiring entrepreneurs which involves sticking to decisions taken in spite of perceived or real difficulties on ground. . An entrepreneur,  needs to imbibe the habit of steadfastness and firmness on decisions taken.

Potential entrepreneurs must be grounded in human relations which involves the need to know how to relate with all categories of stakeholders in the business which could be achieved by studying people and understanding them so as to accommodate their weaknesses and appreciate their strengths. There must be freedom and independence which involves not relying totally on others on key issues affecting the business. Freedom and independence are essential attributes of potential entrepreneurs. Freedom helps entrepreneurs to think widely and wisely so as to come up with new ideas or products. Independence on the other hand, improves the entrepreneur’s ability to control the situation he finds himself and solves his problem without recourse to somebody else. It must also be stated that every aspiring entrepreneur needs emotional stability which has to do with the highly unstable and full of ups and downs nature of business start - ups. For an individual to fit into the business world, he needs to be emotionally stable. Emotional stability means control of sentiments for the attainment of pre-determined goals or objectives. With emotional stability, the unhappiness of incurring losses will not deter the entrepreneur from continuing with the business. Profits making should also not make entrepreneurs to relax and lose sight of future problems.