COURSE CODE: ENT 211

COURSE TITLE: INTRODUCTION TO ENTERPRENEURIAL SKILLS AND

STUDIES
NUMBER OF UNITS:2 Units
COURSE DURATION: TWO hours per week

COURSE LECTURER: DR A .A KIFORDU AND ODIWO WILLIAMS

OMOKHUDU

INTENDED LEARNING OUTCOMES

At the completion of this course, students are expected to:

1. Define clearly the meaning of Entrepreneurship, linkages between

Entrepreneurship and Venture Creation , Development and growth
2. Understand the stages and processes involved in identify and screening
Entrepreneurial opportunities to know how to access a range of possible market
opportunities in a structured and systematic way.
3. Understand what constitutes the legal implications of Business.
4. Analyse different business situations as an Entrepreneur
5. Generate, access and work with business idea

COURSE DETAILS:
Week 1-2:Introduction to entrepreneur and new venture creation
Week 3-4 Entrepreneurship in theory and practice
Week 5-6: The opportunity, Forms of business, Staffing, Marketing and the new venture
Week 7-8: Determining capital requirement, raising capital
Week 9-10 Financial planning and management, starting anew business feasibility studies innovation
Week 11: Legal issues in business, insurance and environmental considerations and possible business
opportunities in Nigeria.
Week 12 Revision

RESOURCES
• Lecturer’s Office Hours:
• Dr. A.A. Kifordu Mondays 12:30-2:30pm.
• Mr. Odiwo Williams Oomkhudu, Wednesdays 2-4pm,
• Course lecture Notes: http://www.edouniversity.edu.ng/oer/Bus /Ent221.pdf
• Books:
i) Principles of Entrepreneurship Development by Tony A. Dr Dibashi ACME
publishers suit 54, BDPA complex, Ugbomo, Benin City in collaboration with
GOMPIA PRESS.

ii) New Directions in small Business Management and Development in Nigeria by Ugbomhe .O.
Ugbomhe, Enoma Anthony Omoa Khanlen, Joseph .A. Jes printers and publications Auchi,
Edo state.
iii) Entrepreneurship and Management of Small Scale Business by Chinelo G.O. Nzelibe,
Optimal international Limited, Enugu.
v) The practice of Entrepreneurship in Nigeria Edited by S.G Eshiotse, A publication by
(CEDAP) Centre for Entrepreneurship Education, Auchi Polytechnic, Auchi.) Readings in
Entrepreneurship studies by M. G. Osagie Omoankhanlen Joseph Akhigbe, Pat, osa, Oviasuyi,
O. J. Erhabor, R. O. Okolie, Ava publishers 2A, Dawson Road, Benin City, Edo State.
(recommended).
Class work:
• Multiple parts (2 or 3).
• Must be done in class
• Home works + class work: ~ 30% of final grade.
• Exams:
• Final, comprehensive (according to university schedule): ~ 70% of final grade
Assignments & Grading
• Academic Honesty: All class work should be done independently, unless explicitly stated otherwise
on the assignment handout.
• You may discuss general solution strategies, but must write up the solutions yourself.
• If you discuss any problem with anyone else, you must write their name at the top of your assignment,
labeling them “collaborators”.
• NO LATE HOMEWORKS ACCEPTED
• Turn in what you have at the time it’s due.
• All home works are due at the start of class.
• If you will be away, turn in the homework early.
• Late Home work (Home work) will not be accepted, but penalized according to the percentages given
on the syllabus.
PREAMBLE:

Introduction

There are many types of business organizations, each being distinguishable from the
other by size, name and nature of business. However, four major types would be
discussed here in terms of their formation, registration and legal status. These include
sole proprietorship, partnership, co-operative societies and incorporated companies.

a) Sole proprietorship: It is a business organization which is managed or operated

by one person.Features:

i) Owned by one person

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ii) Fund requirement is usually small

iii) Control, supervision and management of sole proprietorship are personally under
taken by the proprietor thereby saving some cost.

Examples: retail shops outlets, Hawkers, bakeries, poultry, business centres, mechanical
workshops, carpentry or sculpturing etc.

Advantages:

1) It is easy to established as no formal documents is required (fee or taxes) before

formation.

2) It is subjected to very little governmental regulations.

3) There is enjoyment as a result of personal involvement and satisfaction of being

one’s own boss.

4) Less legal restriction. There is no margin and financial strength is not required
by law to be published.

5) Simplicity in dissolving: The owner of the business may decide to discontinue

with the business, he may do so without consulting anybody.

Disadvantages

It has unlimited liability

It has a great difficulty in raising fund

Lack continuity especially after the death of the owner.

b) Partnership

This consist two or more (but not exceeding) 20 individuals coming together to
carry out a business with the intension of making a profit.

Formation of partnership

Partnership can be formed in any of the following ways:

• By written agreement

• By conduct

• By oral agreement.
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Features of Partnership

i. The existence of a business

ii. The business activity must be permissible by law.

iii. The membership must not be more than twenty.

iv. The members must have the legal capacity to enter into contractual relationship
i.e. must not be mentally retarded who cannot effectively co-ordinate or
comprehend the nature, intricacies and implication of partnership.

Duties of Partnership

1. Every partner must ensure that his interest must not conflict with other partners.

2. Every partner must not receive remuneration from the firm by reason of his being
a partner to the business organization.

3. Every partner must ensure that the firm’s property is being protected.

4. Every partner must render true accounts and full information of all things done in
the firm.

Advantages:

 Synergies as two heads are better than one.

 Partnership may be subject to fewer Regulations and corporation, (Tax

advantages)

 More capital is available to the firm.

 It is easy to start.

Disadvantages:

 Unlimited liability

 Conflicts, disputes may arise between partners as may end the business.

 Limited life as any death may end the business

 Difficulties in finding agreeable partners.

c) Limited Liabilities Companies

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 Examples, Ltd, Plc authorities, Corporation.

Types of Companies

1. Company limited by shares e.g Ltd, Plc

2. Company limited by guarantee e,g Ltd Gte, Plc Gte.

3. Unlimited company e.g ultd.

Features of Private Company

This includes the following features:

1. The memorandum of Association must clearly state that the company is a private
company.

2. The Articles of Association must restrict the transfer of shares.

3. The total number of members of the company must not exceed 50

4. The company cannot write the public to subscribe for any of its shares or
debentures.

5. It cannot write the public to make fixed deposits with it.

6. Its authorized share capital must not be less than N10,000.00

Features of a Public Company

Features of public company include:

1. Its shares are transferable

2. The total number of members can be more than 50. There is no maximum limit to
the number of shareholders.

3. The minimum authorized share capital is N500,000.00.

4. It can invite the public to subscribe for its shares or debentures.

Advantages:

1. It is a limited liability venture

2. Life of corporation is almost perpetual

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 3. Ease to transferring ownership

4. Easy to expand size

5. Basic needs or amenities are provided by the government through corporations

6. Offers employment.

Disadvantage:

1. Numerous government regulations

2. Lack of secrecy

3. Tax burden

4. Corruption/embezzlement

5. Nepotism, Tribalism and religion sentiments.

d) Co-operative Society:

A Co-operative society is an autonomous association of persons united voluntarily

to meet their common economic, social and cultural needs and aspirations
cooperative society is another strategy for forming a legal entity to conduct
business besides forming a company.

Features of Co-operatives:

1. Voluntary and open membership

2. Democratic control, one member are vote

3. Autonomy and independence

4. Promoting economic activities

5. Promoting education and information technology.

6. Co-operation among co-operative

7. Concern for the social and the ecological environment.

Types of Co-operative Societies

 Producer co-operative society

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  Consumer co-operative society (A retail corporative and wholesale co-operative
store).

 Marketing cooperative society (Single purpose society and multi-purpose society).

 Insurance cooperative society (Mutual office and self concern).

Advantages:

• Easy to establish

• One does not really need to follow strict legal restrictions or formalities.

• Membership is open to all race, sex, religion and caste with no time barriers.

• Members are safe from tension as their shares, property are insured.

• As one member leaves others joined.

• Provide quality, justice, special services for the members.

Disadvantages:

• The management team may not possess the needed managerial skills to direct the
firm.

• It lacks secrecy as their book is published to the public.

• The society may not get the desired return or reward for the efforts put onto its
endeavours.

• Differences of opinion are a noticeable cause of problems and issues in a co-

operative main reason behind this may cause social, financial as well political tuss

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THE STAFFING, MARKETING AND THE NEW VENTURE
INTRODUCTION
Every small business owner must be very concerned with the quality of the people
who work for him. The function of staffing has to do with filling the roles within
the business structure.
The Process of Staffing
The process of staffing begins with the analysis of staff requirements and
ends with filling the various positions with the right persons. These processes are
as follows:
a) Analysis of staff requirement
i. Prepare a description of the job
ii. Match the job with the type of employees needed for each particular
position. (Using criteria like age, education, income, experience, skills and
resumption date).
b) Job Description
Factors influencing it are:
i. Describe each job in detail
ii. Stating each responsibility of each and how each job relates to another
within the organization.
iii. The specific skills needed to perform the function.
iv. The required educational qualification and experience the function needs.
c) Recruitment
Ways to source for right personnel’s.
i. Advertise on a newspaper in your area or on a national newspaper to attract
qualified person.
ii. You can past a sign on your premises or you can past a sign or you talk to
your friends to assist in recommending some persons of good character and
good workers.
iii. Visit schools and make recruitment drives.
Recruitment Processes
1. Advertise on various medias
2. Accept applications
3. Shortlist candidate who are qualified.
4. Adopting various test
5. Interview
6. Orientation
7. Handbook

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 Factor to be Consider in Interviewing:
1. Select a congenial environment for your interview.
2. Pose questions clearly and precisely so that the interview will be able to
understand your questions.
3. Judge his eye contacts, pronunciations, and ability to communicate and
address issues intelligently. Ask open-ended questions related to the jobs so
that you can ascertain his ability to perform the functions to be assigned to
him.
4. Provide the application with technical test require these applications whose
jobs require some expertise such as confidential secretaries, typists, quality
controllers, machinists etc. the practical test will enable you determine his
ability and skill on the job.
5. If you find the applicant suitable for the job, take his references; and validate
their authenticity.
6. Applicant required undergoing some necessary medical test.
7. A handbook stating the company’s guidelines for promotion, leave, rules
and regulations of the company is given to the new employees.
d) Orientation:
 It exposes the new employee to the operations of the business.
 Close to the new employee
 To discover his strengths and weaknesses
 Discuss an improvement method within.
 Create a cordial and harmonious working condition for the employee so
that he may be able to put in his best in the operations of the business.
e) Employees’ Handbook
The business owner should prepare an employees’ handbook for the
employees. It should be precise, simple and easy for comprehension. It should
contain all the information about your business, its objectives, policies,
philosophy, the organizational chart, the reporting system, method of
promotion, termination, and in event of employee, death, the procedures for the
settlement of the benefits.

F) Employee Compensation Plan

The reason why people work is the economic reward attached to it. This
depends on the nature, size and location of your business. This is in addition to
fringe benefits; incentives which can attract caliber of persons to the business.

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g) Training
Employee need adequate training to provide them with acquired knowledge
and skills to enhance their performance. The job will become mere routine,
unattractive, and boredom to the employees; when this happen, business
performance may begin to drop as high employee turnover and absenteeism will
begin to energy.

Types of Training
1. On-the-job Training
2. Formal classroom training

h) Employee Performance Appraisal

There are needs to evaluate the business periodically so as to find out the
contribution of staff to the business.
 Yardstick for measuring these are:
 Creating a performance appraisal form and at the end of each row the
specific score for each item is determined.
 Using the objective to evaluate.
 I) Employee Termination

 It is a process whereby an employee seizes to be a staff of the

company.

MARKETING STRATEGIES AS IT APPLIES TO NEW VENTURE.

Introduction
The typical business organization starts out with the beliefs, desires and aspiration
of a single entrepreneur. The sense of mission for such an entrepreneur is usually
founded on the belief that his organization’s product or service can provide
benefits relative to its price and that the product or service can satisfy the needs of
a market segment(s) currently not adequately met by competitors.

STARTING A SMALL-SCALE ENTERPRISE

Introduction

Small-scale enterprise development is not for everybody, it requires a high level

of dedication, discipline, creativity and persistence as well as a lot of work. The

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micro-entrepreneur must be capable of making decision-making and have the
ability to manage employees (if any) and accounts. Before setting up a small-scale
enterprise, it is look at the following steps (Iyayi, 1996).

A. Deal with specific challenges: In any business venture, particular

challenges need to be addressed. These include:

 Physical location of the business venture

 Accounting skills

 Construction of other physically demanding work

 Management skills

 Marketing skills

B. Choose the right business

The right business certainly varies from one person top another. Personal
preferences, along with mental and physical capabilities are the key deciding
factors. Nonetheless, the focus should be on market demand and its
limitations to determine if the business can be successful.

C. Review Market demand and the competition

It is necessary to Review the competition. Competition means there is a

market, but how big is the market?

D. Check Season ability

Agriculture and farming produce for example are often seasonal. The following
questions must be considered

E. Decide on business size

We must take care in deciding the size of the business

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 F. Identity the location

Location plays a crucial role in starting a small-scale enterprise. While a

farming or farm-related enterprise need not be accessible to the buyers,
the micro-entrepreneur will have to travel to sell the produce. When the
business involves fresh produce, timely sale is important.

G. Check availability of raw material

Raw material for making the produce should be readily available. Import of the
material should be avoided due to the fact that this will make it difficult to
ensure a steady supply.

Nzeribe (1996) opine various step for starting a business which are as
follows

Steps to Starting a Business

Step 1: Write a Business Plan

Step 2: Get Business Assistance and Training

Step 3: Choose a Business Location

Step 4: Finance Your Business

Step 5: Determine the Legal Structure of Your Business

Step 6: Register a Business Name (“Doing Business As”)

Step 7: Get a tax Identification Number

Step 8: Register for State and local taxes

Step 9: Obtain Business Licenses and Permits

Step 10: Understand Employer Responsibility

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 BUSINESS RISK AND INSURANCE

INTRODUCTION

Business is economic activities directed at the provisions of goods and

services with the sole aim of profit making. This economic activities ranges
from financial services, accounting services, personnel, marketing,
advertisement, health, education, production, business centres (photocopying
and typing stores, telephone, cybercafé, etc), and research and development
(R and D).

BUSINESS RISK

Risks are the uncertainties surrounding the expected outcomes from

business activities. Technically, this uncertainty may be positive or negative.
However, general usage tends to focus only on potential harm that may arise
from the uncertainties which may occur either from incurring a cost [downside
risk], or by failing to attain some benefits [upside risk).

In this way, risk can also be defined as the probability of loss to which the
business enterprise is exposed to. In the work place, incidental and inherent
risks exist.

INSURANCE

An entrepreneur can manage business risks by taking an insurance policy.

Insurance, in law and economics, is a form of risk management primarily used
to hedge against the risk of a contingent loss. Insurance is defined as the
equitable transfer of the risk of a loss, from one entity to another, in exchange
for a premium. It can also be thought of as a guaranteed and known small loss
to prevent a large, possibly devastating loss. It is a valuable sort of protection
against business risks that might arise in the course of business operations.

CLASSES OF INSURANCE

Any risk that can be quantified can potentially be insured. Specific kinds of
risk that may give rise to claims are known as “perils”. An insurance policy will

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 set out in details which perils are covered by the policy and which are not.
Below are list of the many different types of insurance that exist.

[a] Home insurance

[b] Health insurance

[c] Accident and Sickness insurance

[d] Fire insurance

[e] Marine insurance

[f] Fidelity insurance

[g] Agricultural insurance

Life insurance.

Life insurance provides a monetary benefit to a dependent’s family or

others. It is certain that one must die. Thus, the term life insurance is to
provide future income to the insured/assured beneficiary or dependent in
the event of his or her designated beneficiary, and may specifically provide
for income to an insured person’s family, burial, funeral and other final
expenses. Life insurance policies often allow the option of having the
proceeds paid to the beneficiary either in a lump sum cash payment or an
annuity. Life insurance/assurance takes different forms.

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