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

2. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.2 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.

3. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.3 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.

4. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.4 COURSE 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.

5. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.5 ENTREPRENEURSHIP: THE QUOTABLE QUOTES Most of what you hear about entrepreneurship, says American leading management thinker, is all wrong. Its not magic, and it has nothing to do with genes. Its a discipline and, like any other discipline, it can be learned. Peter F. Drucker, Innovation and Entrepreneurship

6. 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. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.6

7. 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 Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.7

8. continued neither victory nor defeat who receive weekly paychecks regardless of their weeks performance, who are hired hands in the labor in someones elses garden. These doers are producers and no matter what their lot is at any given moments, theyll never take a place besides the takers, for theirs is a unique place, alone, Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.8

9. continued under the sun. They are entrepreneurs! By Joseph R. Mancuso Centre for Entrepreneurial Management. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.9

10. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.10 THE CONTEMPORARY WORLD OF ENTREPREURSHIP THE ENTREPRENEURIAL REVOLUTION WHO 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.

11. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.11 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.

12. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.12 Entrepreneurs 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

13. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.13,continue Integrity and reliability, Tolerance for failure, High energy level, Creativity and innovativeness, Vision, Self-confidence and optimism, Independence Team building

14. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.14 ENTREPRENEURSHIP There is no single definition of entrepreneur exist, and no one profile can represent todays 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.

15. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.15 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.

16. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.16 continue, 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.

17. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.17 continue 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.

18. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.18 continue Jeffry A. Timmons (1990) on his book New Venture Creation, 3 rd 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).

19. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.19 THE TEN [10] MYTHS OF ENTREPRENEURSHIP 1.Entrepreneurs are doers, not thinkers. 2.Entrepreneurs are born, not made. 3.Entrepreneurs are always inventors. 4.Entrepreneurs are academic and social misfits 5.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].

20. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.20 THE BENEFITS OF ENTREPRENEURSHIP 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.

21. THE POTENTIAL DRAW BACK OF 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. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.21

22. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.22 INTRAPRENEURSHIP 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.

23. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.23 SMALL BUSINESSES Small is beautiful and big is 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.

24. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.24 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.

25. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.25 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.

26. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.26 SCOPE OF SMALL BUSINESS 1.Independent ownership. 2.Independent management. 3.Relative small size in its field of operation.

27. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.27 CATEGORIES OF SMEs IN TZA CategoryEmployeesCapital Investment in Machinery(Tsh) Micro enterprise 1-4Up to 5 mil Small enterprise 5-49Above 5 mil to 200 mil. Medium enterprise 50-99Above 200 mil to 800 mil. Large enterprise 100+Above 800 mil.

28. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.28 CHARACTERISTICS OF MALL BUSINESSES 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.

29. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.29 Characteristics of the areas where opportunity for small 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

30. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.30 continue 7. Where the owner has previous experience in the business. 8. Where technological requirements are simple.

31. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.31 ROLE OF SMALL BUSINESSES IN 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.

32. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.32 continue 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.

33. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.33 CAUSES OF SMALL BUSINES FAILURE 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.

34. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.34 Promoting enterprising culture among small firms owners 1.Sensitization. 2.Reward. 3.Supportive government policy. 4.Financial and non financial services be in place.

35. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.35 QUESTION 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?

36. Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Tuesday, January 14, 2014Bayona, R.K.K.36 END OF SESSION ONE REMARKS: Thanks a lot!!